Drawbacks of Cryptocurrency Exchanges – How Non-Custodial Services Are the Solution

Cryptocurrency exchanges are online platforms where one can buy, sell, or trade cryptocurrencies. The aim of crypto exchanges is to connect buyers and sellers by creating a cycle of supply and demand in one place.

Centralized vs Decentralized Exchanges

However, almost every exchange is prone to hacking, has privacy issues, and users could end up losing their funds. Non-custodial exchange services look to overcome these shortcomings of cryptocurrency exchanges.

Online cryptocurrency exchanges can be categorized into two types: centralized and decentralized.

Centralized exchanges allow you to sign up with your email and password and usually have extra security features like two-step authentication or email verification.

Even though they make it easier for everyday users to buy and sell digital assets with their interactive interface, one major downside of such exchanges is that they do not give users full control of their cryptocurrencies. The private keys of your wallets are held with…