Cryptocurrency Q&A
What is the downside of centralized exchanges?
What is the downside of centralized exchanges?
GyeongjuGlorious
Tue Oct 29 2024
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5 answers
1283
I'm concerned about the potential downsides of using centralized exchanges for cryptocurrency trading. Could someone explain the risks and limitations associated with these platforms?
5 answers
lucas_emma_entrepreneur
Wed Oct 30 2024
Centralized exchanges function as centralized entities. This indicates that they undertake the responsibility of managing user accounts.
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Tommaso
Wed Oct 30 2024
Users of centralized exchanges rely heavily on the exchange's security protocols. These protocols are crucial for safeguarding their digital assets.
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MysterylitRapture
Wed Oct 30 2024
In addition, these exchanges hold control over private keys. This centralization of key management is a defining feature of their operational model.
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Martina
Wed Oct 30 2024
Despite implementing rigorous security measures, centralized exchanges remain vulnerable. They are particularly susceptible to large-scale hacking attempts.
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MoonlitCharm
Wed Oct 30 2024
Insider attacks also pose a significant threat to centralized exchanges. These attacks can originate from within the exchange's own systems or staff.
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