There has always been a battle between centralized exchanges and decentralized ones. They both have different pros and cons. Centralized exchanges are the most popular right now because of the enormous liquidity as well as a decent range of trading tools, however, the lack of security is concerning for investors.
In 2019 alone, there have been almost a dozen hacks and millions have been stolen in Bitcoin. This is fairly common in the crypto market and no exchange seems to safe from it. That’s when decentralized exchanges come into play, users don’t need to share their private key and deposits work in a decentralized way through smart contracts, there isn’t a central wallet you can hack or access.
The biggest issue with decentralized exchanges is the lack of liquidity as well as a lack of trading tools, most of them barely offer the basic sell/buy orders, you can’t set stop-losses, trades can take minutes or even hours to complete. The bottom line is, DEX’s aren’t great for trading.
People have come up with a solution to these problems, hybrid exchanges, they are exchanges that combine the benefits of a DEX with a CEX. Users can benefit from decentralized deposits and at the same time have access to liquidity as well as a wide variety of trading tools. This certainly seems to be the trend in 2019 but the technology is still quite fresh and will need some polishing.