Exchanges play a key role in the crypto market. They are where investors are able to trade their cryptocurrencies.Due to which they also serve to create a reference value for the asset. The best known exchanges used by investors are centralized. In other words, they have a company or a business group responsible for their management.

Decentralized exchanges (DEX) offer ease in trading cryptocurrencies, as it does not require a bureaucratic registration, you find buyers and sellers in the same place, trading is carried out directly between the portfolios of two users, with minimal intervention from third parties. It is safer and less invasive for those who want discretion and privacy in their dealings.

We cannot always find the assets we want on decentralized exchanges, as it depends on whether some investor has put the asset up for sale. However, they do not require the user to deposit cryptocurrencies in a wallet of the exchange itself, giving up ownership of the assets. The trend is that as time passes, decentralized exchanges will become better known and more used for trading. Offering greater liquidity to the market.

The main difference between a centralized and decentralized exchange is that the centralized exchange has an owner, with a CNPJ, a head office, etc. Being subject to the laws of the country where it operates. In this case, just a request from the government and there will be no more privacy of your transactions. In the decentralized exchange, it is not necessary to create a record or enter any personal data. All you have to do is connect a cryptocurrency wallet with the desired platform. Cryptocurrencies are traded directly from the wallet and never go through any third party. Likewise, no user data is read or collected by DEX, which represents a high degree of privacy in the use of these platforms.

The disadvantages of a DEX are:

Usability, as navigation is not so intuitive

Liquidity, as there is not always a supply or demand for the asset you want to trade, or are not yet being traded at a fair price; support, as the security password cannot be reset upon opening a ticket, so keep your password securely so you don't lose your funds.

If you are looking for privacy in your negotiations and data protection, using a Dex can be the solution, and every day there is more technological innovation in the area.