The centralized cryptocurrency exchange acts as the trusted third party between the buyer and seller. Both the parties trust the exchange with their funds, and they deposit their funds in the exchange’s wallet
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The reason behind the rise of decentralized exchange is to make better exchange platform than centralized one.
Eventhough the centralized exchanges seems to have all qualities, why there is a need to create a decentralized exchange ?Hacking, fee manipulation, security etc are the major reasons behind this.
Thus the main differences between centralized and decentralized exchanges are, Control - No need of central server to control the data of the users.
Therefore the funds of the transactions can be controlled by the participants itself.
Anonymity - To ensure the privacy of users, every transactions are anonymous and encrypted.
Evident benefits of decentralized exchanges According to the experts in crypto world, decentralized exchanges are much more practical when it comes to trade in larger volumes.Secure, Fast and cheap transactionsUser controllable funds instead of central servers Even the decentralized exchanges are good and all, it also have its own limitations they are, Difficult to use - Centralized exchanges are easy to use than decentralized thus it is not very user friendly.