A Comparative Analysis of the Performance of Centralized and Decentralized Exchanges in the Cryptocurrency Market: A Liquidity, Security, and Knowledge Management Approach
Keywords:
Centralized Exchanges (CEX), Cryptocurrency Market, Knowledge Management, Liquidity Management, Security in ExchangesAbstract
The primary benefit of decentralized exchanges (DEX) and centralized exchanges (CEX) in the cryptocurrency market is their distinct approach to resolving issues related to liquidity, security, and knowledge management. Adjusting strategies in a timely manner based on market conditions and user feedback can lead to resource optimization and improved efficiency. One of the key advantages of DEXs is their reliance on decentralized networks, where knowledge is distributed across users, enhancing transparency and security. On the other hand, CEXs benefit from centralized control, which allows for swift decision-making and high liquidity. In this paper, we aim to analyze and prioritize the factors influencing the performance challenges in both types of exchanges, focusing on liquidity management, security protocols, and the role of knowledge sharing. Through a comprehensive review of the literature, three categories of factors—organizational, technological, and user-based—were identified. These factors are crucial in determining how knowledge is managed and applied to improve decision-making processes and security in both CEXs and DEXs. Expert opinions from professionals in the cryptocurrency and blockchain industry were gathered to validate these factors. Using the DANP method, we explored the causal relationships and prioritized the factors based on their impact on performance. The findings revealed that organizational factors in CEXs have a significant influence on liquidity and security, while user-based factors are more prominent in DEXs due to their decentralized nature. Technological factors, including blockchain innovation, play a critical role in both. The study identified five key challenges related to knowledge management: insufficient knowledge sharing between users and developers, reluctance to adopt new security technologies, lack of communication between market participants, limited training for new users, and the underestimation of knowledge management's impact on overall performance. Recommendations were provided to help exchanges reduce these challenges, ensuring better management and enhanced performance in both centralized and decentralized platforms.
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Copyright (c) 2025 Samaneh Sadeghi (Author); Bahareh Banitalebi Dehkordi ; Iraj Torabi , Hamidreza Jafari Dehkordi (Author)
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