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#1 2023-11-20 21:31:36

Kelechi
Member
Registered: 2022-12-25
Posts: 1,599

What are the disadvantages of Centralized exchange

Hi guys, am in a dilemma now between choosing centralized exchange and decentralized exchange. I will need some experienced minds on their reasons for their choice of any of the exchange

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#2 2023-11-20 21:36:03

KAMSI_UG
Member
Registered: 2022-12-26
Posts: 1,455

Re: What are the disadvantages of Centralized exchange

Well firstly I would say choose what works for you, but know what you getting into, for be I choose decentralised exchange because it supports anonymity, privacy protection and this means alot to me but if you have no problem with privacy getting invaded then you can use centralised system.

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#3 2023-11-20 21:36:46

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 1,751

Re: What are the disadvantages of Centralized exchange

Kelechi;25921 wrote:

Hi guys, am in a dilemma now between choosing centralized exchange and decentralized exchange. I will need some experienced minds on their reasons for their choice of any of the exchange

Well mate, for me I prefer decentralized exchanges because centralized exchanges may be susceptible to market manipulation or insider trading, posing risks for users who are new to such activities

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#4 2023-11-26 23:16:07

Kelechi
Member
Registered: 2022-12-25
Posts: 1,599

Re: What are the disadvantages of Centralized exchange

Centralized exchanges might have limitations in terms of the variety of cryptocurrencies they support. This can restrict users who want to trade less common or newer tokens.

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#5 2023-11-27 21:28:09

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 1,751

Re: What are the disadvantages of Centralized exchange

Users of centralized exchanges relinquish control of their private keys and entrust the exchange with the custody of their assets. This centralized control contrasts with the principles of decentralization that underlie many cryptocurrencies

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#6 2023-11-27 21:29:31

Kelechi
Member
Registered: 2022-12-25
Posts: 1,599

Re: What are the disadvantages of Centralized exchange

Also, users on centralized exchanges often need to go through Know Your Customer (KYC) procedures, compromising their privacy. This requirement can expose users to potential data breaches or misuse of personal information.

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#7 2023-11-27 21:49:31

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 1,751

Re: What are the disadvantages of Centralized exchange

Centralized exchanges can experience delays in processing transactions, especially during periods of high demand. This can impact the speed at which users can trade or withdraw their funds.

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#8 2023-11-27 21:50:48

Kelechi
Member
Registered: 2022-12-25
Posts: 1,599

Re: What are the disadvantages of Centralized exchange

CrytoCynthia;26362 wrote:

Centralized exchanges can experience delays in processing transactions, especially during periods of high demand. This can impact the speed at which users can trade or withdraw their funds.

You are right mate,Since centralized exchanges operate from a single server or a cluster of servers, technical issues or downtime on the exchange's end can result in service interruptions for all users.

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#9 2023-11-27 22:38:39

KAMSI_UG
Member
Registered: 2022-12-26
Posts: 1,455

Re: What are the disadvantages of Centralized exchange

Kelechi;26363 wrote:
CrytoCynthia;26362 wrote:

Centralized exchanges can experience delays in processing transactions, especially during periods of high demand. This can impact the speed at which users can trade or withdraw their funds.

You are right mate,Since centralized exchanges operate from a single server or a cluster of servers, technical issues or downtime on the exchange's end can result in service interruptions for all users.

Why would anyone choose centralised exchanges when you have the option of going for decentralised services my take is always to use a decentralised exchange.

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#10 Yesterday 05:12:17

Europ
Member
Registered: 2023-05-23
Posts: 955

Re: What are the disadvantages of Centralized exchange

KAMSI_UG;26379 wrote:
Kelechi;26363 wrote:
CrytoCynthia;26362 wrote:

Centralized exchanges can experience delays in processing transactions, especially during periods of high demand. This can impact the speed at which users can trade or withdraw their funds.

You are right mate,Since centralized exchanges operate from a single server or a cluster of servers, technical issues or downtime on the exchange's end can result in service interruptions for all users.

Why would anyone choose centralised exchanges when you have the option of going for decentralised services my take is always to use a decentralised exchange.

There are various linked to which a centralized exchanges can be vulnerable to attack and threat and moreover it can easily be suggested due to aim of person identification.

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