Before Bitcoin was created - One of the biggest problem was that banks were centralized system which controlled the flow of money.
However,Cryptocurrencies were created to reverse this and to decentralized the power.Instead of a central banking authority an automated system based on mathematical algorithms which could be used for the purpose of transactions.Decentralization has been the core/main reason of cryptocurrencies as a concept.The primary objective behind the creation of cryptocurrencies was it would be bring decentralization into the system.Decentralized can be controlled or can be manage by its owners authorizations only.
What is Decentralized Exchange?
A Decentralized Cryptocurrency Exchange is a cryptocurrency trading platform which does not rely on third-party service for holding the cryptocurrencies of a customers or traders.On the past years the problem of hacks arises when cryptocurrencies are stored with the exchange.However, if the exchange doesn't have the currencies there is no riskof hacking as the currencies are stored with the traders wallet.Decentralized Exchange are the real concept of cryptocurrencies.Satoshi Nakamoto created the bitcoin for purpose, to be accessable by everyone who want to use is as a payment without being controlled or any restrictions and stay anonymous.
The Advantage of Decentralized Exchanges
•Security
The biggest advantage and the reason why traders need more decentralization in cryptocurrency exchange is because it enhance security.Decentralized exchange provide the users with a better security because there is no third party services.
What is Centralization Crypto Exchange?
Centralized Crypto Exchange they have controlled users accounts as well as funds.They require a user to sign up and provide personal details such as identity proof including e-mail ID,phone numbers ,utility bills and passports.