Decentralized Crypto Exchanges come with great advantages as well as disadvantages. But it’s without a doubt the future of crypto exchanges platform. Let’s discus what pros. and cons. each this platform carry.
Why these days big Exchanges are Running Like Crazy Mens Behind Opening Up a Decentralized Exchange‼. As of Now Most Big Exchanges Holding Centralized Platform and All of Them Wants to Go into a Decentralized Platform.
Here are the pros. And cons. Of Centralized & Decentralized Platform.
- Advanced features
- Easy to Use (not for all)
- Advanced Tools
- Exchange Control Funds
- Personal Documents Required
- Vulnerable to Downtime or Hacking
- Not Anonymous
- User Control Their Own Funds
- Not vulnerable to hacking or Downtime
- No Trading Fees
- No Personal Documents to Apply
- Not Easy to Use (not for beginner)
- Basic Features
- Transaction fees
- Less Liquidity
As you can see, decentralized exchanges have more benefits than centralized exchanges. The fact that only you can be in charge of your money is a huge plus. That’s the reason why big guys are running behind to open up a decentralized exchange. But right now, liquidity is a problem for decentralized exchanges. But we can hope this will on years to come.
My experience is mainly on centralized exchanges. But I did use iDEX for few trades and cost on transaction fees are higher than centralized exchanges since you have to pay the transaction fee several times. But it was never a big price to pay considering benefits I got. Also cost could be lower than those of centralized exchanges for bigger trades.
Another problem is that all DEX (decentralized exchanges) out there are ERC20 based Exchanges, Means You Can only Trade Via ETH Pair as of Now.