The development of cryptocurrency is enormous and it’s taking different directions.
A cryptocurrency exchange is any system that operates on the basis of trading cryptocurrencies with other assets. Like a traditional financial exchange, the cryptocurrency exchange's core operation is to allow for the buying and selling of these digital assets, as well as others. Currently, there are two platforms where these exchanges can be carried out: Centralized and Decentralized exchange.
Centralized Exchange: There is only one governing body making all the main decisions for the user and the participants must rely on these decisions and cannot effect any changes. In the central exchange, the fund must be kept in exchange’s wallets by all and sundry. In the face of one ruling body controlling all the main decisions making, there are advantages which this exchange offers: it is user friendly, the accessibility is very easy; the trading functions are advanced and easy to access such as stop-loss, lending, margin trading. Some examples of centralized crypto exchanges are; BTC-F, Bittrex, Poloniex, BitStamp and a host of others.
Decentralized Exchange: The decision making is not controlled by a single governing body rather decision making is the participants on the platform. It presents the participants with equal rights and opportunities in the management exchange’s activities and they can trade with each other directly.
In the world of cryptocurrency, Decentralized Exchange is still a new phenomenon; it’s revealing the ideology of decentralized blockchain in a way that all participants are fully involved in managing the activities happening on the platform. Holding of fund is personal; there is no central wallet for holding fund unlike the Centralized Exchange. This platform gives the participant high level of data confidentiality. Examples of Decentralized Exchanges are; Bitshares, Openlendger, RuDEX
Decentralization is the modern trend.
We are going to buttress some of the disadvantages of the Centralized Exchanges, although even in the face of one serious setback, the centralized exchange still remains popular and widely accepted due many years of practice and its fundamental nature plays an increasing role in the modern cryptocurrency world.
The following important indicators reveal the risk of the centralized system:
Security. There is a clear center where beat attackers. The total amount of funds abducted by hackers, starting with the history of MtGox, Bitfinex, etc., is estimated at hundreds of millions of dollars, since there is a central wallet where funds are kept, hacker could hack into the system
Unfair competition. Example with BTC-E and A. Vinnik, accused of fraud, theft and money laundering through BTC-E.
Danger of sanctions. Some many participant in the centralized system could not withdraw their money from Poloniex Exchange when US sanctioned them from the countries in which the sanction was applicable.
Political risks. The recent sharp change in China's policy towards ICO and cryptoexchanges in Beijing has a tremendous effect on the participants
This list can be continued and continues with examples from the recent past but most of all it is alarming that this list will be updated in the future.
Proceeding from the foregoing it is very pertinent to ask a crucial question that sooner or later arises before each participant of the cryptocurrency market. How to protect yourself and minimize the risks of losing invested money? Is it worth the "old habit" of centralized system of probability to lose all at once?
By our opinion the answer to this important question is quite apparent - the transition to a decentralized trading platform without all the risks described above and without a long list of challenges associated with centralized exchanges.
We suggest that one of the most advanced platforms for creating a decentralized exchange is the BitShares 2.0 platform (Graphene), that's where we create the multipurpose decentralized Exchange - DEEX.
At the first stage it is planned to build the system on the existing BitShares Exchange engine. Next we will develop its own engine on BitShares 2.0 (Graphene) for DEEX with its own nodes and a global coin (token) similar to BitShares (BTS).
Conclusion
The Decentralized exchange is more profitable than the centralized exchange, the decision making embraces all the participants, it’s user friendly and there are policy restricting members from withdrawing their funds as at when they want to. Let’s go the DEEX Exchange way and enjoy the world of cryptocurrency.
For further inquiries, kindly check the following links:
Website: https://www.deex.exchange/
Telegram: https://t.me/deex_exchange
Whitepaper: https://deex.exchange/DEEX_wp_rus.pdf
Steemit: https://steemit.com/@deex
Facebook: https://www.facebook.com/groups/deex.exchange/
Twitter handle: https://twitter.com/deex_exchange
Bitcointalk username: johnomonday53
Bitcointalk profile url: https://bitcointalk.org/index.php?action=profile;u=1860742
