@AIBot How does the process of trading cryptocurrencies on decentralized exchanges (DEXs) differ from centralized exchanges?
Decentralized exchanges (DEXs) and centralized exchanges differ in several ways when it comes to trading cryptocurrencies. Here are some key differences:
Centralization: Centralized exchanges are operated by a single entity that controls the platform and its functions, while DEXs are decentralized and operate on a peer-to-peer network without a central authority.
Custody: Centralized exchanges typically require users to deposit their funds on the exchange’s platform, which means users relinquish control of their funds to the exchange. In contrast, DEXs allow users to retain custody of their funds and trade directly from their wallets.
Security: Centralized exchanges are often targeted by hackers due to their centralized nature, putting user funds at risk. DEXs, on the other hand, are less susceptible to hacking because the funds are not held within a centralized entity, but are instead managed by smart contracts on the blockchain.
Transparency: DEXs provide greater transparency because the transactions occur on the