Cryptocurrnecy exchanges are meant for several purposes and intents; and last but not the least it is the backbone of the Cryptocurrnecy market. Assets that are considered to be evert make use of this market are traded via this exchange. This world of Cryptocurrnecy exchange has two types of platforms i.e. centralized and decentralized.
What is centralized exchange? It is a third party that brings together the individuals and institutions looking forward to exchange with one another. The purpose of the centralized exchanges is usually to reduce the friction that is involved in offering liquidity. Also it calls for convenience through accounts that hold the positions and funds. These exchanges include the Kraken, Coinbase, and Binance are usually known and used as centralized exchange.
What is decentralized exchange? These exchanges are not coordinated by any third party. On contrary, they are dealt on distributed ledger such Cryptocurrnecy.
Benefits of decentralized Cryptocurrnecy exchanges:
Cheaper and faster transactions: They facilitate the activities to be carried out in a faster. Cost effective, and cheaper crypto exchange / transactions. It is the removal of third party that reduces the fee as well as time to do the activities.
More difficult to hack: It is less susceptible to be attacked maliciously. There have been centralized crypto exchange platforms that have gone through digital attacks.
Seamless integration with secured hardware wallets: This is one of the major advantages of the decentralized exchanges amusing the users with seamless integration with well-known wallets. This includes Ledger Nano S and Trezor. They are known to ensure safer transaction. You as a user can send the coins directly to the smart contract comprising of several decentralized exchanges.
This is not possible with centralized exchanges where one has to enter the private keys on manual basis when need is to move the coins from hardware wallet to the exchange.
You will control the funds: The decentralized exchange is controlled by the participants so that there is no central custody. In other words, money is in control of the users. Transactions occur between the networks and the peers by means of contracts. This enable the users to use the private keys. These keys and the funds at all the time are dealt with decentralized exchange.
In short, if we make a comparison between centralized and decentralized exchanges, the decentralized cryptocurrency exchange is considered to be offering maximum beneifts in the future. There was in the beginning when people had doubts about the cryptocurrency. To date, people have developed trust in the phenomena and now more and more people are investing in to it.
You need to make sure that you are using a reliable platform. Looking at the fact that decartelized crypto currency will be in demand in near future; one of the platforms is Light Bit Atom. At this point of time, the platform is at ICO stage however it appears to be an innovative idea related to crypto currency. Decentralized cryptocurrency exchange works positively when it is dealt with experts and hence team of the LightBitAtom is group of professionals at their best.