Are you buying, selling, or trading cryptocurrencies? You’re probably using a cryptocurrency exchange to complete your transactions. These exchanges are either centralized or decentralized—a core design choice that affects almost every part of your trading experience.
Decentralized exchanges—like the blockchain technology on which they’re built—rely on consensus mechanisms, with data distributed across users. But centralized exchanges are undeniably more accessible. Which should you choose? The decision is about trade-offs—and priorities.
Key Points
Centralized exchanges are the easiest to use, but perhaps least secure.
Decentralized exchanges afford the most security and privacy.
You can use a mix of both types of exchanges.