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

Kelechi
Member
Registered: 2022-12-25
Posts: 3,040

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: 2,771

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: 3,181

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: 3,040

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: 3,181

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: 3,040

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: 3,181

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: 3,040

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: 2,771

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 2023-11-29 05:12:17

Europ
Member
Registered: 2023-05-23
Posts: 2,186

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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#11 2023-11-30 21:57:14

Kelechi
Member
Registered: 2022-12-25
Posts: 3,040

Re: What are the disadvantages of Centralized exchange

Users on centralized exchanges don't have direct control over their private keys. Private keys are held by the exchange, exposing users to risks associated with relying on a third party for custody.

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#12 2023-11-30 21:58:40

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 3,181

Re: What are the disadvantages of Centralized exchange

Kelechi;26571 wrote:

Users on centralized exchanges don't have direct control over their private keys. Private keys are held by the exchange, exposing users to risks associated with relying on a third party for custody.

Also Users' funds are held in custody by the exchange. This introduces the risk of mismanagement, fraud, or insolvency on the part of the exchange, potentially leading to loss of funds.

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#13 2023-12-02 22:48:43

gap
Member
Registered: 2023-06-14
Posts: 1,925

Re: What are the disadvantages of Centralized exchange

CrytoCynthia;26572 wrote:
Kelechi;26571 wrote:

Users on centralized exchanges don't have direct control over their private keys. Private keys are held by the exchange, exposing users to risks associated with relying on a third party for custody.

Also Users' funds are held in custody by the exchange. This introduces the risk of mismanagement, fraud, or insolvency on the part of the exchange, potentially leading to loss of funds.

The Centralized exchange has more advantages and  also carries its flaws. The centralised is limited im security .

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#14 2023-12-03 22:11:52

Kelechi
Member
Registered: 2022-12-25
Posts: 3,040

Re: What are the disadvantages of Centralized exchange

Centralized exchanges are susceptible to security breaches and hacking attacks. If compromised, users' funds stored on the exchange may be at risk. Several high-profile hacks on centralized exchanges have resulted in significant losses.

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#15 2023-12-04 20:21:33

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 3,181

Re: What are the disadvantages of Centralized exchange

Centralized exchanges hold users' funds in custody. This introduces the risk of mismanagement, fraud, or insolvency on the part of the exchange, potentially resulting in loss of funds for users.

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#16 2023-12-04 20:24:50

Kelechi
Member
Registered: 2022-12-25
Posts: 3,040

Re: What are the disadvantages of Centralized exchange

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

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#17 2023-12-04 20:26:55

CrytoCynthia
Member
Registered: 2022-11-19
Posts: 3,181

Re: What are the disadvantages of Centralized exchange

Kelechi;26865 wrote:

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

You are right mate but centralized exchange users should be aware of the risks associated with centralized platforms and consider implementing additional security measures, such as using hardware wallets for long-term storage and enabling two-factor authentication.

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#18 2023-12-06 19:59:35

crpuusd
Member
From: Blockchain
Registered: 2022-12-13
Posts: 2,411

Re: What are the disadvantages of Centralized exchange

Kelechi;26865 wrote:

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

You are very much right. The centralised exchange also brings a large distributing platform for communication without abstained in users identity.

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#19 2023-12-11 22:09:35

KAMSI_UG
Member
Registered: 2022-12-26
Posts: 2,771

Re: What are the disadvantages of Centralized exchange

crpuusd;27011 wrote:
Kelechi;26865 wrote:

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

You are very much right. The centralised exchange also brings a large distributing platform for communication without abstained in users identity.

Using decentralized exchange like crypton exchange can save you a lot and it's actually pretty easy to understand and effective.

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#20 2023-12-16 00:12:17

joanna
Member
Registered: 2023-01-10
Posts: 3,855

Re: What are the disadvantages of Centralized exchange

crpuusd;27011 wrote:
Kelechi;26865 wrote:

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

You are very much right. The centralised exchange also brings a large distributing platform for communication without abstained in users identity.

Centralized exchanges, while providing a platform for cryptocurrency trading, typically do not prioritize communication or facilitate large-scale distribution of messages.

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#21 2023-12-16 00:12:34

oba
Member
Registered: 2023-01-13
Posts: 1,869

Re: What are the disadvantages of Centralized exchange

joanna;27662 wrote:
crpuusd;27011 wrote:
Kelechi;26865 wrote:

centralized exchanges continue to be widely used due to their user-friendly interfaces, liquidity, and ease of access. I think it’s based on user’s preference

You are very much right. The centralised exchange also brings a large distributing platform for communication without abstained in users identity.

Centralized exchanges, while providing a platform for cryptocurrency trading, typically do not prioritize communication or facilitate large-scale distribution of messages.

Their primary function is to match buyers and sellers of cryptocurrencies and facilitate transactions.

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#22 2023-12-16 00:14:53

joanna
Member
Registered: 2023-01-10
Posts: 3,855

Re: What are the disadvantages of Centralized exchange

oba;27663 wrote:
joanna;27662 wrote:
crpuusd;27011 wrote:

You are very much right. The centralised exchange also brings a large distributing platform for communication without abstained in users identity.

Centralized exchanges, while providing a platform for cryptocurrency trading, typically do not prioritize communication or facilitate large-scale distribution of messages.

Their primary function is to match buyers and sellers of cryptocurrencies and facilitate transactions.

While centralized exchanges may have some communication features such as live chat support or customer service channels, the main focus is on facilitating the trading process rather than providing a communication platform for users.

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#23 2023-12-16 00:15:23

oba
Member
Registered: 2023-01-13
Posts: 1,869

Re: What are the disadvantages of Centralized exchange

joanna;27664 wrote:
oba;27663 wrote:
joanna;27662 wrote:

Centralized exchanges, while providing a platform for cryptocurrency trading, typically do not prioritize communication or facilitate large-scale distribution of messages.

Their primary function is to match buyers and sellers of cryptocurrencies and facilitate transactions.

While centralized exchanges may have some communication features such as live chat support or customer service channels, the main focus is on facilitating the trading process rather than providing a communication platform for users.

Crypton exchange also have commuity live chat communication features and it provide quality trading process.

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#24 2023-12-16 00:16:56

joanna
Member
Registered: 2023-01-10
Posts: 3,855

Re: What are the disadvantages of Centralized exchange

oba;27665 wrote:
joanna;27664 wrote:
oba;27663 wrote:

Their primary function is to match buyers and sellers of cryptocurrencies and facilitate transactions.

While centralized exchanges may have some communication features such as live chat support or customer service channels, the main focus is on facilitating the trading process rather than providing a communication platform for users.

Crypton exchange also have commuity live chat communication features and it provide quality trading process.

Additionally, these communication channels are often used for addressing support requests, addressing trading issues, or providing general information related to the exchange's operations.

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#25 2023-12-16 00:17:15

oba
Member
Registered: 2023-01-13
Posts: 1,869

Re: What are the disadvantages of Centralized exchange

joanna;27666 wrote:
oba;27665 wrote:
joanna;27664 wrote:

While centralized exchanges may have some communication features such as live chat support or customer service channels, the main focus is on facilitating the trading process rather than providing a communication platform for users.

Crypton exchange also have commuity live chat communication features and it provide quality trading process.

Additionally, these communication channels are often used for addressing support requests, addressing trading issues, or providing general information related to the exchange's operations.

In terms of user identity, centralized exchanges typically require users to provide personal information and complete a know-your-customer (KYC) verification process.

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