Cryptocurrency exchanges are for all intents and purposes, the backbone of the cryptocurrency market. They are online platform that allows customers to trade cryptocurrencies or digital currencies for another (or for fiat currency).
Every tradable asset needs a market where it can be traded and that is what these exchanges do. Within the crypto world, there are basically two types of exchange platform, centralized and decentralized.
Almost 90% of the total numbers of cryptocurrencies exchanges which exist are centralized in nature and the rest being decentralized. Centralized cryptocurrency exchanges are online platforms used to buy and sell cryptocurrencies. They are the most common means that investors use to buy and sell cryptocurrency holdings.
A decentralized cryptocurrency exchange is one in which the architecture of the platform has no central controlling server. That is to say, users transact directly with their peers without the need for a central server.
While in centralized exchange, funds are controlled by the centralized exchanged service. That is to say, funds are solely in the hands of the centralized platform service.
Centralized Exchange vs Decentralized Exchange
In a recent interview with Ethereum’s co-founder Vitalik Buterin, he criticized