Centralised v decentralised exchanges (Part 2)

In Part 1 of “Centralised v decentralised exchanges”, we looked at how centralised exchanges offer high liquidity, fiat access, advanced features and a user-friendly experience, but require user trust, create custodial risks and face tight regulatory scrutiny. By contrast, decentralised exchanges (DEXs) are trust less, transparent and non-custodial, enabling permissionless peer-to-peer trading and wide token access but they present a steeper learning curve, variable liquidity and higher user responsibility for key management and error risks. Centralised exchanges (CEXs) generally boast higher liquidity and greater trading volumes due to their large user base which allows for quicker transaction execution and better price stability; these platforms use a predictable fee structure based on maker and taker fees, with rates typically ranging from 0.01% to 0.75%.

Popular decentralised exchanges

Source: Teamblockchain

In contrast, DEXs often have lower liquidity especially for less popular tok…