# 	 Centralized exchanges vs Decentralized exchanges

**URL:** <https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532>\
**Category:** General\
**Created:** [July 16, 2019, 10:13am UTC](https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532 "2019-07-16T10:13:52Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![jamesbowers](https://discourse.peercoin-library.org/letter_avatar_proxy/v4/letter/j/b5ac83/32.png) [@jamesbowers](https://discourse.peercoin-library.org/u/jamesbowers)\
**Post date:** [July 16, 2019, 10:13am UTC](https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532/1 "2019-07-16T10:13:52Z")

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Centralized exchanges are trading platforms that function like traditional brokerage or stock markets,  
transactions are being controlled by the owners of the exchange. On centralized exchanges users do not have access to their  
private keys. They are managed by one central body which makes them vulnerable to hacker attacks.

Decentralized exchanges DEX is trading platform that operates without central authority. They are  
utilizing blockchain technology. Decentralized cryptocurrency exchanges have been designed in order to protect funds from being  
stolen, users have control over their funds.

-Currently, on the cryptocurrency market, about 99% of transactions are being handled on centralized exchanges.  
-DEX have high level of privacy, transactions are anonymous.  
-Centralized exchanges have higher liquidity and higher trade volume compared with DEX.  
-Centralized exchanges allow users to exchange fiat for crypto-currency and vice versa. DEX only accepts payments  
in crypto-currencies.

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**Author:** ![EchoHound](https://discourse.peercoin-library.org/user_avatar/discourse.peercoin-library.org/echohound/32/2477_2.png) [@EchoHound](https://discourse.peercoin-library.org/u/EchoHound)\
**Post date:** [July 17, 2019, 9:07pm UTC](https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532/2 "2019-07-17T21:07:49Z")

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I have actually never tried a DEX before. Are there any viable ones right now? Many of them have abysmal liquidity… That’s my biggest issue with them.

What I’m unsure about is whether the liquidity is due to the networks unable to process the DEX/being too slow, or if it’s just a matter of preference. Could anyone shine a light on this?

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**Author:** ![Buckkets](https://discourse.peercoin-library.org/user_avatar/discourse.peercoin-library.org/buckkets/32/2453_2.png) [@Buckkets](https://discourse.peercoin-library.org/u/Buckkets)\
**Post date:** [July 18, 2019, 5:41pm UTC](https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532/3 "2019-07-18T17:41:29Z")

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They are both illiquid and slow due to orders having to be registered on the blockchain (last I checked). For example, an order has to be in place for ten minutes before it can be cancelled. This makes HFT non-existent and arbitrage near pointless which reduces the liquidity. This is atleast what I know from a good discussion I had with an algo designer for Radar Relay about a year ago.

EDIT: [https://cointelegraph.com/news/0x-dex-protocol-suspended-because-of-vulnerability-funds-safe](https://cointelegraph.com/news/0x-dex-protocol-suspended-because-of-vulnerability-funds-safe)

Perhaps that only pertained to ZRX

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**Author:** ![jimmsanderss](https://discourse.peercoin-library.org/letter_avatar_proxy/v4/letter/j/e99b99/32.png) [@jimmsanderss](https://discourse.peercoin-library.org/u/jimmsanderss)\
**Post date:** [December 12, 2019, 2:39pm UTC](https://discourse.peercoin-library.org/t/centralized-exchanges-vs-decentralized-exchanges/9532/4 "2019-12-12T14:39:06Z")

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Definitely DEX. I am afraid to be controlled by centralized guys.  
I am using IDAX, [quite secured](https://cryptogeek.info/exchanges/idax-review) exchange.