Hello friends,
I am doing good, and I hope that you are having a good time with your near and dear ones.
In the crypto market, we have two types of exchanges available to us. One is called centralized exchange and the other is decentralized exchange. The centralized exchanges are owned by some companies and usually, these types of exchanges offer more functionalities. We don't get a key for our wallet with centralized exchanges. decentralized exchanges are open for everyone and we get the key for our wallet in this case. There is no company operating these exchanges however a team is behind that works on the development but the functionality is limited in this type of exchange.
Now a type of transition has started from centralized to decentralized. This is because probably people are not comfortable keeping their funds in a centralized exchange wallet. We have seen how the ftx used customer funds and this was not a good practice. The exchange will never ask the owner if they can use the fund or not because they just do it. Because of this keeping funds in a decentralized wallet. We have access to our wallet because we own the key and with this wallet, we can trade on a decentralized exchange. Decent lies exchanges are also called DEX and centralized exchanges are called CEX.
Now the crypto market has matured and this is because recently we have seen how some exchanges are targeted by the Exchange Commission in the US. You never know when an exchange has to go through a difficult regulatory process. Even now we know that one of the popular exchange founder has stepped down from the CEO position because of some issues by the government authorities. This is the time why decentralized exchanges are going to get more attention because people are not OK with the centralized exchanges. At least we have access to our fund whenever I want and it is always recommended not to keep a higher amount on the exchange and to keep the fund that you use for trading purposes only.
The functionality of decentralized exchanges is indeed limited but hopefully, we can expect to expand it further in the future. centralized exchanges are not going anywhere because I think there will always be demand for them and we can play on the market with them. But we need to be careful and vigilant about our funds so it is never recommended to keep the funds idle on the centralized exchange wallet. If you are using it for trading purposes it is fine because anyways you are using it and not keeping it idle.
I also think that the self custody and decentralized wallets are much preferred by the people in the crypto space and this will continue to grow even more. The technology is evolving and because of that I expect the functionality on decentralized wallets and exchanges will also improve and enhance further.
Now the bittrex exchange has announced that it will be shutting down its business effective 4 December. Do you know that it was one of the biggest exchanges in 2017 when there was one of the major bull runs in the market? Now after six years, the exchange has to shut down because of regulatory issues happened in the US. Anything can happen in this market so don't get surprised but what matters is that we need to keep our funds safe
