NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Why Centralized Exchanges (CEXs) Are Losing Popularity to Decentralized Exchanges (DEXs)

NewsBTC
NewsBTC
4 years ago
3 mins read
DEXs

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Centralized Finance (CeFi) is the fundamental model of the traditional financial ecosystem, which comprises stakeholders such as monetary oversight bodies, regulators and financial institutions. As such, all these stakeholders work in collaboration towards sustaining sound financial markets.

Despite its value proposition in traditional finance, the CeFi model has come under constant criticism due to its centralized nature. One of the shortcomings of this model is reliance on human power to make decisions for a larger population. For instance, the U.S federal reserve can decide to lower or hike interest rates without much public consultation. While it may be in the public’s best interest, some decisions made by monetary authorities are largely unpopular.

Furthermore, central authorities are notorious for using their control over systems to stamp out rivals or threats. This can be seen in the crypto industry, where authoritarian governments have an easier time cracking down on market operations or passing laws that limit innovation. In most cases, the authorities claim to be acting in the consumers’ interest, which might be true, but some simply protect their control over market operations.

The Risk of Third Parties in Financial Ecosystems

Moving away from the oversight bodies, we have financial institutions that provide services such as loans, insurance and fund investing. These financial vehicles act as third parties by enabling consumers to access market services. In doing so, they bridge the gap of financial inclusion, although not completely.

While third parties pose significant risks to the existing market systems, the risk is even more significant in nascent ecosystems like the crypto industry. For example, prominent crypto exchanges such as Binance and Coinbase have had to halt transactions in recent months as their systems were overloaded. During these times, crypto investors and traders had to bear the risk of their assets losing value and not being able to sell.

It is also quite noteworthy that crypto exchanges follow stringent KYC/AML measures to comply with the underlying CeFi architecture. While it may be a positive approach for their regulatory risk mitigation, it is a significant hurdle towards the growth of crypto as most countries are yet to adopt proper regulations.

Given this situation, it comes as no surprise that many crypto enthusiasts are shifting to decentralized ecosystems and trading on decentralized exchanges (DEXs) instead of CEXs.

What are Decentralized Exchanges (DEXs)

DEXs became popular with the rise of Decentralized Finance (DeFi), an emerging crypto niche that seeks to decentralize financial services. Currently, there exist DeFi protocols that offer services ranging from lending and borrowing, exchanges and market instruments, including Bitcoin derivatives. The space gained popularity throughout 2020 as DeFi projects launched governance tokens and yield farming programs.

Today, we have multiple DEXs where crypto users can seamlessly trade without giving up their details to centralized exchanges. Ideally, DEXs are designed as decentralized platforms, which means that no central parties are involved. Instead, these applications rely on blockchain networks and smart contracts for execution.

Some of the advanced DEXs are now going to the extent of providing direct access to multiple digital exchanges. One such platform is the OrionProtocol which allows users to view offers across various exchanges. This DeFi protocol simplifies trading by integrating an all-in-one ecosystem where crypto investors and traders can execute their orders.

In addition, the OrionProtocol allows anyone to start buying crypto-assets like Bitcoin and Ether without providing any KYC documents. Instead, users only need a wallet address, and in a few clicks, they can purchase the crypto of their choice.

Closing Thoughts

The traditional financial market infrastructure remains a fundamental pillar of today’s market and future innovations such as DeFi. However, a few improvements or changes need to be made to be compatible with the digital ecosystem era. This will require the collaboration of stakeholders, including crypto innovators, regulators and prospective consumers. So far, some progress has been made, but it may take time before decentralized markets are fully adopted across the globe.

Tweet123Share196ShareSend
NewsBTC
NewsBTC

NewsBTC

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

How FUNToken’s Deflationary Model Is Fueling Its $0.10 Target to Get 10X Profit and Beyond

The field of Web3 gaming tokens is utterly crowded. In this, FUNToken ($FUN) is rapidly capturing attention for a simple...

NewsBTC 3 weeks ago
WBT Marks

WBT Marks Three Years with Record Growth and Ongoing Utility Expansion

WhiteBIT Coin (WBT), the native cryptocurrency of the WhiteBIT exchange, is celebrating its third anniversary with performance numbers that stand...

NewsBTC 3 weeks ago

FUNToken Can Reach $0.33 by 2026: What Telegram Engagement, Gaming Expansion, and Deflationary Mechanics Mean for the Future

As the Web3 gaming space matures, FUNToken ($FUN) has emerged as one of the few projects combining live adoption, transparent...

NewsBTC 3 weeks ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Fedrok and FarmRight pilot on-chain verification to reduce child-labour risk on Ghana’s cocoa and palm farms

NewsBTC 2 weeks ago
mozilla foundation

Mozilla Foundation: Η νέα εποχή υπό την ηγεσία της Nabiha Syed

Ιωάννης Ριζόπουλος 2 weeks ago
Crypto Fundraising

Institutional Crypto Crowdfunding Gains Momentum Among Top-100 Crypto Projects

PR Desk 2 weeks ago

Premium Sponsors

Press Releases

  • Seize the XRP Surge: ETHRANSACTION Mining Platform Allows...

    2 weeks ago
  • Négy altcoin, amely több mint 200%-os növekedési potenciállal rendelkezik|Új történelmi csúcs a Bitcoin árfolyamában

    Négy altcoin, amely több mint 200%-os növekedési...

    3 weeks ago
  • Cztery altcoiny z potencjałem wzrostu powyżej 200%|Nowe rekordy cenowe Bitcoina

    Cztery altcoiny z potencjałem wzrostu powyżej 200%|Nowe...

    3 weeks ago
  • HTX Launches 12th-Anniversary Carnival and Embarks on a New...

    3 weeks ago
  • 仮想通貨 おすすめ:Token6900が急成長、次のビッグミームコイン候補か?

    TOKEN6900 プレセールが220万ドル突破 –...

    3 weeks ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.