Decentralized Exchanges (DEX) have grown in popularity not only as a result of the hype surrounding decentralized financial products (DeFi). However, the race to the decentralized exchange reignited the debate over the advantages and disadvantages of decentralized and centralized exchanges (CEX). Many cryptocurrency enthusiasts believe that decentralized exchanges’ market share will grow significantly in the future. Many of the established cryptocurrency exchanges are also working on a decentralized version of their trading platforms. Reason enough to investigate the characteristics of various types of exchanges. Will crypto trading truly decentralize in the future? Let’s take a look at the differences between DEX and CEX.

According to CoinnDesk’s statistics, CEX security incidents have never been interrupted. In 2018 alone, there were at least 6 CEX theft incidents, resulting in a loss of US$860 million in user assets. This is equivalent to the user’s daily loss of US$2.35 million in assets on CEX. The KuCoin theft event in 2020 exposed the security risks of the centralized exchange (CEX) asset management model to the public.

GIBX DEX

A decentralized exchange is not subjected to government mandates, regulations, or oversight. Direct trading pits users against each other, with no third party involved in the transaction. Each user on the platform has complete control over their private keys and, as a result, their crypto assets using GIBX DEX.

One of the primary reasons for trading on a GIBX DEX is certainly anonymity. There is no KYC, no authentication procedure, and no personal documents are stored on servers in other countries. Typically, a personal address on the relevant blockchain is sufficient, and trading can begin. There is no personal data exchange between the exchange and an authority on GIBX DEX.

A decentralized server network of GIBX DEX  facilitates low-cost trading with a large number of trading pairs. This significantly reduces the risk of a hacker attack and makes inaccessibility due to server failures virtually impossible. Because a GIBX DEX is directly on the blockchain, an attack on a central server is not possible.

GIBX CEX

The user interfaces are simple to grasp, and the processes and procedures can be quickly internalized for beginners. Access to the respective trading options is simple and straightforward—a high level of functionality overall, with numerous trading options and a diverse selection of cryptocurrencies.

CEX has excellent liquidity due to its high trading volume. Payment obligations can be met quickly and easily with the exchanges. The frantic activity on the centralized trading venues ensures a high volume of buy and sell orders, ensuring market-friendly trading.

CEX is based on both a local and centralized infrastructure. This enables near-real-time transaction exchange. The top exchanges’ algorithms can process thousands of orders per second. Traders can respond to changing market conditions without having to wait.

The major mainstream exchanges provide a diverse range of digital currencies with a plethora of trading pairs. Withdrawals and deposits in fiat currency are also possible at the same time.

Summary: CEX vs DEX 

To summarise, GIBX DEX and CEX each have their own set of advantages and disadvantages, as well as entirely different operating cores. CEX exchange, the company’s leading service, continuously enriches functions, simplifies operations, and attracts investors to the currency circle through financial support and technological development. However, GIBX DEX offers diverse smart contracts on DEX and the rich ecosystem attracts investors who are willing to take risks and enjoy learning about new things in the currency circle. The benefits and drawbacks of each are relative, and there is no total replacement.

GIBX DEX will become increasingly important in promoting the bull market. Product diversification will allow GIBXchange to improve security, transaction, interoperability, and DeFi’s ecological construction. 

The presence of GIBXchange has undoubtedly contributed to the popularity of DeFi this year. Given that most traders face technical challenges when participating in DeFi, GIBXchange proactively reached out to assist and leverage its own advantages to enable more users to participate in the DeFi wave. People who want to join the DeFi wave will benefit significantly from the simple operation method. It dramatically improves people’s ability to participate in DeFi and fully appreciate the traffic and benefits that DeFi brings.