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Centralized Exchanges

A centralized cryptocurrency exchange is a marketplace for buying and selling digital assets. In this situation, you'll need to enlist the help of a third party to monitor the transaction and protect the buyer and seller's assets.

These exchanges are likewise based in a single location, making their servers vulnerable to hackers and rogue agents on the premises.

Decentralized Exchanges

A decentralized exchange is a peer-to-peer marketplace that links bitcoin buyers and sellers.

Decentralized platforms, unlike centralized exchanges, are non-custodial, which means that when a user transacts on one, they keep control of their private keys.

In the absence of a central authority, a decentralized exchange employs smart contracts that self-execute under particular conditions.

Because these exchanges are dispersed over several servers throughout the world, they are nearly tough to attack.

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