A centralised cryptocurrency exchange is a platform where users can buy and sell digital assets such as Bitcoin, Ethereum, Litecoin and other cryptocurrencies from a central authority. This central entity can be a company or individual that controls the entire exchange and holds their customers’ funds and data.
A decentralised exchange, on the other hand, provides an automated and trustless system for users to trade digital assets without needing to trust a third-party custodian of their funds or data. Decentralised exchanges operate on blockchain technology, which eliminates the need for an intermediary and allows users to transact directly with each other. Furthermore, decentralised exchanges are not limited to just one jurisdiction, meaning they are accessible to anyone in the world.