If you’re looking to buy or sell Bitcoins and other cryptocurrencies online then your best bet is a crypto exchange.
There are several kinds of crypto exchanges, one of them being a decentralized platform. It’s different from a centralized exchange in several ways.
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Centralized or Decentralized Crypto Exchange?
A centralized crypto exchange is largely responsible for the storage and security of its users’ digital assets. They’re tasked with handling the volume of Bitcoin and making sure the platform is running smoothly as it should.
Decentralized exchanges, or DEXs on the other hand is a platform where the user gets control of his or her digital assets. The exchange mainly acts as a mediator or a hub where transactions take place.
Advantages of a Decentralized Crypto Exchange
Total Control Over Your Assets
Centralized exchanges are attractive targets to hackers, and a security breach can mean the end of them. They also tend to hold your assets, which means you have little control over them.
On the other hand, a DEX will give you access to your digital assets anytime during the day. With the help of a wallet you’ll be able to store Bitcoin and your other cryptocurrencies and get them to safety should an attempt to steal them be made.
You Can Participate No Matter Your Region
Centralized exchanges will need to comply with laws and regulations set by governments and as such are required to block certain users from other regions. It’s not uncommon for them to geo-block accounts in a month or two, leaving you in the dust.
Decentralized exchanges, however have no such restrictions. You’ll be free to make a trade to Bitcoin and vice versa, as well as not have to worry about not having access to your cryptocurrencies after a week. Plus, you can enjoy lower transaction fees compared to centralized platforms.
Get Complete Anonymity and Privacy
DEXs will not require a user to sign up or provide personal information, such as physical address, social security number or bank details.
Centralized exchanges will often have anti-money laundering and know your customer checks, which has its own benefits but then your data might be sold to other third party affiliates. This isn’t the case with a decentralized exchange because there’s no single entity that controls the platform.
Higher Level of Security
Again, a centralized platform means the site will have power over trading procedures. Many exchanges offer high-tech security measures to try and curb hacking attempts but they’re not completely foolproof.
Once this happens investors will have no way to get their digital assets back. It’s recommended that users keep a hardware wallet or paper wallet handy to prevent a total investment disaster from taking place.
DEXs are powered via Blockchain technology, which means they’re far more secure. As of late, decentralized crypto sites are becoming more intuitive and user-friendly.
Open an account with a reputable Bitcoin trading software Bitcoin Code and you can get an edge in profits. It’s better than simply signing up at a cryptocurrency exchange and not knowing when to buy and when to sell cryptocurrencies.