Centralized exchanges are operated by central institutions, with user assets held by the platform. They offer high liquidity and trading speeds, and have user-friendly interfaces, but there is a risk of single points of failure, and there have been incidents of hacking and fund misappropriation. Users are required to submit personal information to complete identity verification and are subject to government regulation.

Decentralized exchanges are based on blockchain technology and do not require intermediaries, allowing users to retain control over their assets. Transactions are executed directly on the blockchain, enhancing security and privacy and reducing the risk of hacking. However, they tend to have slower transaction speeds, lower liquidity, higher barriers to entry, and may face legal challenges due to unclear regulations.

Both have their pros and cons, and users can choose the appropriate trading method based on their own needs.