Pros and Cons of Centralized Exchanges !

Bytedex is a decentralized hybrid exchange.

Pros and Cons of Centralized Exchanges

Juridical Status

Since these exchanges are 

generally managed by companies, 

they have to comply with legal 

processes.

Therefore, they are responsible 

for the regulations.

You have an interlocutor in front 

of you regarding the claim and 

loss of rights.

Functionality

Centralized exchanges have much 

more stockbroking instruments 

because they are controllable in 

terms of software structure, such 

as leverage, options, orders, 24/7 

customer service.

Liquidity Opportunity

Due to the ownership 

of legal status and the 

ability to trade with 

fiat currencies, a lot of 

transactions are carried 

out on these exchanges 

on a daily basis and as 

a result, high liquidity 

and transaction capacity 

occurs.

Fiat Currency

Use of Fiat Money Such 

exchanges can make 

deals with banks and 

payment institutions 

and easily exchange 

or trade crypto assets 

and fiat currencies.In 

this case, crypto assets 

can be traded with 

credit cards and bank 

accounts.

Stability

Many CEX services 

can be maintained 

stably, although the 

commissions they 

receive are higher than 

other exchange types, 

it is a kind of win-win 

situation for users 

and exchange owners 

due to the additional 

services they provide.

+ PROS

Pros and Cons of Centralized Exchanges

- CONS

• They are contrary to Blockchain Ideology

The most obvious ideology of the blockchain world is decentralization.

Bitcoin is mainly built to break the hegemony of central currency structures on 

humans.In fact, centralized monetary structures have become structures that can 

produce unbacked money in the debt-based monetary system.Blockchain takes this 

power from banks and gives it to people.

• Price Manipulations

Another issue that is now publicly known for CEXs is internal interference with the 

values of crypto assets.The price of each crypto asset in these structures can be 

intervened, price changes may not be reflected instantly, or transactions can be 

stopped.

• Security

Centralized systems are very vulnerable to hacker attacks.

 Although many security measures have been taken, we should not forget that no 

system is perfect.

• Control

Crypto Assets that are on the exchanges in CEXs are 

completely in the hands and control of the exchange. In 

this case, it can be very easily manipulated, and you can 

lose your assets completely.

ByteDex is an eco-system consisting of Byte Exchange, Byte Wallet (ByteW), Bytedex Token, Bytedex Community and Byte Chain.