#中心化与去中心化交易所

Differences Between Centralized and Decentralized Exchanges

Centralized exchanges are operated by an institution or company, acting as an intermediary between buyers and sellers. Users need to deposit their assets into the exchange's wallet, and transactions are processed on its servers, such as Binance. The advantages are fast transaction speeds and high liquidity, but there are security risks; if the platform is hacked or internal malfeasance occurs, user assets may be at risk.

Decentralized exchanges are based on blockchain technology and are not controlled by a centralized entity. Transactions occur directly between users' wallets without needing to entrust assets to the platform, such as Uniswap. They enhance asset security and privacy protection, but transaction speeds are relatively slower, and liquidity can sometimes be inadequate. Both have their pros and cons, and investors need to carefully choose based on their own needs.