#中心化与去中心化交易所 Centralized exchanges and decentralized exchanges are the two main types of cryptocurrency trading. Below is their comparison:

Centralized exchanges

• Operation method: A central institution is responsible for matching trades, users deposit funds into the exchange's wallet, and the exchange performs order matching and asset transfer during transactions, such as Binance, Huobi, etc.

• Advantages: Good trading experience, user-friendly interface, good trading depth, strong liquidity, and a professional customer service team.

• Disadvantages: There is a risk of single point of failure. If the exchange suffers a hacker attack, mismanagement, or other issues, user funds are at risk. At the same time, users must trust the exchange, and trading is heavily influenced by regulation.

Decentralized exchanges

• Operation method: Based on blockchain technology, trading is achieved through smart contracts, and user funds are stored in their own wallets, with trades conducted directly between users, such as Uniswap, PancakeSwap, etc.

• Advantages: Secure, users hold the private keys, and fund security is controlled by themselves. Transparent, trading records can be checked on the blockchain. Additionally, they are not controlled by centralized institutions, providing greater autonomy and resistance to censorship.