Are there alternatives to centralized exchanges?

In Nov. 2022, a CoinDesk scoop led to a stunning turn of events that led to formerly popular exchange FTX collapsing and filing for bankruptcy. This has led a lot of crypto investors to look for alternatives to centralized exchanges. The obvious alternative are a newer type of exchange that is decentralized such as Uniswap and Pancakeswap.

Are dexs better than cexs?

Nevertheless, DEXs still tend to offer roughly the same prices for assets as CEXs. This is because attentive traders or bots can quickly profit from any discrepancy in prices through arbitrage. If a certain pool contained very little ETH, it would have to let traders sell ETH into the pool at a higher price than the wider market indicated.

What are cexs and how do they work?

CEXs generally offer supplementary services, such as crypto asset custody. They often require that users deposit their crypto assets at the exchange before trading can happen. Exchanges are the most valuable businesses in the crypto world, according to a 2021 report by global accountancy KPMG.

Is shapeshift a Cex or a Dex?

ShapeShift used to be a CEX until its CEO said the company lost 95% of its users as a result of KYC measures it was forced to implement in 2018. In 2021, Shapeshift decidedly pivoted and became a DEX to shrug off this problem. DEXs may struggle more than CEXs when working with larger investors.