Between a buyer and a seller, centralised cryptocurrency exchanges serve as a middleman. Centralized exchanges are more reliable since they are run and managed by a business. centralised exchanges handle about 99 percent of all crypto transactions.
DEXs (decentralised cryptocurrency exchanges) enable users to conduct peer-to-peer transactions without the need of a middleman. Decentralized exchanges are favoured by certain users due to some of the problems associated with centralised exchanges.
Benefits of a Decentralized cryptocurrency exchanges:
1. Reducing the danger of being hacked
Decentralized exchange users are not required to transfer their assets to a third party. As a result, there is no danger of a business or organisation being hacked, and users are protected from theft and hacking.
2. Keeping the market from being manipulated
Decentralized exchanges avoid market manipulation by enabling for peer-to-peer cryptocurrency exchange. This protects consumers against false trading and wash trading.
3. Confidentiality
Customers on decentralised exchanges are not required to fill out know-your-customer (KYC) forms, giving them privacy and anonymity.