#中心化与去中心化交易所

Centralized exchanges and decentralized exchanges are the two main types of platforms for cryptocurrency trading. Here is their introduction:

Centralized Exchange

- Operating Method: A central authority is responsible for managing transactions. Users need to deposit cryptocurrencies into the exchange's wallet, and transactions are matched by the exchange's matching engine based on user orders. Transaction records are stored in the exchange's centralized database.

- Features: User-friendly trading interface, easy to operate, suitable for beginners. Good trading depth, strong liquidity, capable of quickly completing large transactions. Offers multiple trading pairs and rich trading functions, such as margin trading, contract trading, etc. However, there is a risk of single point of failure. If the exchange's system encounters problems or is attacked, it may lead to transaction interruptions or loss of user assets. Meanwhile, user assets are held by the exchange, posing a risk of asset misappropriation by the exchange or theft due to hacking.

- Representative Platforms: Binance, Huobi, etc.

Decentralized Exchange

- Operating Method: Based on blockchain technology, using smart contracts to achieve transaction matching. Users interact directly with smart contracts through wallets for trading, and transaction records are stored on the blockchain.

- Features: Users have complete control over their assets, with private keys kept by the users themselves, ensuring high asset security. The trading process is transparent, with all transaction records verifiable on the blockchain, eliminating the need to trust centralized entities. However, the trading interface is relatively complex, requiring higher technical expertise from users. Liquidity is generally not as good as centralized exchanges, with limited trading depth, and large transactions may affect prices.

- Representative Platforms: Uniswap, PancakeSwap, etc.