Centralized exchanges and decentralized exchanges are the two main types of platforms for cryptocurrency trading. Below are their key features:

Centralized Exchanges

- Features: Trades are conducted on centralized servers, users need to register accounts and deposit funds into the exchange wallet, trades are matched by the exchange, the order book is centrally managed, transaction confirmation speed is fast, and there is a professional customer service team providing support.

- Advantages: Good user experience, simple operation, strong liquidity, a wide variety of trading products, support for multiple trading pairs, strict KYC and AML certification, which to some extent ensures transaction security.

- Disadvantages: There is a risk of single point of failure; if the server encounters issues, trades may be affected. User fund security relies on the exchange; if the exchange is attacked or internal issues arise, funds can be easily stolen. Moreover, trading rules are set by the exchange, limiting user control over transactions.

- Representative Platforms: Binance, Huobi, etc.

Decentralized Exchanges

- Features: Based on blockchain technology, trades occur directly between users without the need for centralized institutions to match them. Smart contracts enable the automatic execution and settlement of trades, and users connect to the exchange through wallets, with private keys held in their own hands.

- Advantages: Users have full control over their funds, high security, transparent transactions, all transaction records can be checked on the blockchain, and there is no need to register accounts, protecting user privacy.

- Disadvantages: Smart contracts may have vulnerabilities, leading to security issues; transaction confirmation speed is slow, liquidity is relatively poor, trading interfaces may not be user-friendly, operations can be complex, and there are high technical requirements for users.

- Representative Platforms: Uniswap, PancakeSwap, etc.