[Centralized Vs. Decentralized Exchanges. What's "Hot" and whats "Not" about BOTH?](
Today, we in the STEAM Revolution Digital Asset Collector community decided to take a detailed look at the difference between both of these exchanges so you can understand the distinctions better, know what opportunities and what challenges lie inside both of these Investment portals.
What is the difference between CEX and DEX?
In short, decentralized exchanges offer lower transaction fees, allow the user to hold their own assets, and avoid a few regulatory burdens. On the other hand, centralized exchanges offer faster transactions, ease of use, high liquidity, and more.
- Are decentralized exchanges safe?
Just like centralized exchanges, decentralized exchanges are also susceptible to liquidity risks. Liquidity is significant for all financial assets and instruments traded on a certain exchange. But, for decentralized exchanges, liquidity is still a formidable concern. - What are the major downsides of decentralized exchanges?
Decentralized exchanges have a few downsides. These exchanges have a slow transaction time, which plays a pivotal role where an investor closely watches the price of an asset and waits for the right time to buy/sell before the prices rise or fall drastically. Some criticize decentralized exchanges for their usability as their user experience is not that great.
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