What are Centralized Exchanges? Centralized Exchanges are the earliest version of exchanges. It is the kind of ecosystem built with trust as the backend. Here, the admin of the Exchange has direct control on trading All the data, funds are stored in the central server. i.e, the single pathway for data. It enables quick and easy data handling. What are Decentralized Cryptocurrency Exchanges? Decentralized Exchanges or DEX evolve with the primary concern of solving the problems and inconveniences in the centralized exchanges. This platform runs directly on the blockchain network. Here, trading happens automatically under smart contracts without the involvement of third parties.