Hi guys i am back again, i hope you are all well. On this article i am going to look and do the comparison on Decentralized Finance Exchange Platforms and Centralized Finance Exchange Platforms.
In these crypto industries we have a lot of exchange platforms some which are centralized and some are decentralized e.g we have exchanges like kucoin, Binance Exchange, Uniswap e.t.c. With these smart contracts and tokens being introduced each and everyday the number of Decentralized exchanges are increasing.
Decentralized Exchanges are here to replace the centralized exchanges as investors go not like the centralized one as there will be questions on the decentralized on these crypto so everything has to be decentralized.
How do they differ?
Most of the exchange platforms offer a lot of services, they are into trading of crypto currencies and for that reason they offer storage wallets for traders and these days since investors are now into token staking those same exchanges are now offering those services and this will force the investors to lock in their coins and tokens on the exchange platforms which tends to be riskier, e.g we have sushiswap which is offering swapping, stacking, borrowing e.t.c
Then we have another set of exchanges e.g Uniswap, changelly they are just instant token exchange platforms and they are Decentralized as they do not keep traders monies. They are safer as they do not offer other services which my lure investors to invest and maybe later you will hear that the exchange was hacked and investors lose money.
Decentralized Finance Exchange platforms are very much safe and good for doing business with as compared to centralized Finance exchange platforms where the owners of the exchange oversee and control the daily operations and this pose a risk as they might be tempted to varnish with investors money.