Why centralized exchanges will lead crypto to the future

Publicado en by Cointele | Publicado en

Decentralized exchanges are undoubtedly an exciting development in crypto.

Centralized exchanges will continue to play a pivotal role in this ecosystem, providing the depth of liquidity needed to grow the wider crypto community.

While growing in popularity, DEXs tend to have lower volume and liquidity than centralized exchanges.

Having sufficiently deep liquidity helps centralized exchanges contain big market swings and volatility spikes.

Centralized exchanges will continue to drive crypto adoption.

Centralized exchanges have proven to be scalable, high-performance infrastructures, and their connectivity supports a variety of strategies, including high-frequency trading.

This allows centralized exchanges to attract professional investors and institutional investments that the crypto industry needs to scale and eventually achieve mass adoption.

Centralized exchanges have even been taking a page out of DEXs' book and offering features such as non-custodial solutions.

Such hybrid solutions allow centralized exchanges to provide a high-performance experience and the benefits of self-custody while remaining compliant with regulations.

As DEXs gradually find their place, it is clear that centralized exchanges will continue to evolve and play a key role in leading the crypto industry and community in the years ahead.The views, thoughts and opinions expressed here are the author's alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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