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RE: Steemit Crypto Academy Contest / S6W2- Centralized Cryptocurrency Exchange Platforms and Its Risks

in SteemitCryptoAcademylast year

You have done justice to the task here friend. Of a truth centralized exchanges are risky and we have seen an example of it's risk in the downfall of FTX. I prefer Decentralized exchanges and platforms for saving my assets.

Decentralized exchanges are cryptocurrency exchanges that do not rely on a central authority to manage funds. Instead, these exchanges operate on a peer-to-peer basis, allowing users to trade directly with each other without having to go through a third party.
This makes them significantly more secure than centralized exchanges as they reduce the risk of a single point of failure.

The FTX exchange was a centralized exchange, meaning that it relied on a centralized authority to manage funds. This put the exchange at a greater risk of mismanagement, as the central authority had total control over user funds.

Thanks for sharing, and goodluck in this contest friend.

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Thank you very much @preye2 for your comment.

It's true, when there is a problem at the core of centralized exchanges it affects everyone but the peer to peer system of decentralized exchanges prevents such problems

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