Day: December 13, 2019

Crypto Exchanges: Centralized vs Decentralized

Crypto Exchanges Centralized vs Decentralized

A cryptocurrency exchange is a gateway for its users to perform crypto to crypto and fiat to crypto trading. Most popular cryptocurrency exchanges today are centralized. This is because roughly 99.8% of crypto trades happen in centralized exchanges as users prefer centralized exchanges over decentralized exchanges. Even though there have been instances of notorious hacks in the past (for example, the infamous Mt. Gox hack), centralized exchanges still dominate the crypto-space by a long shot, though the number of hacks has only continued to increase. Does this mean that traders and investors are willing to sacrifice security for liquidity? Why