Decentralized exchanges are seen as closer to the true decentralized spirit of cryptocurrency. The most popular cryptocurrencies operate on decentralized networks where no single user has full control over the network. Instead, the network is a collection of voluntary nodes that are connected through a publicly accountable peer-to-peer system.
Some centralized exchanges have faced scandals involving the misappropriation of funds, withdrawal functions halted without warning, high-profile cybersecurity incidents, and expensive fees. Exchanges like 0x provide the ability for users to circumvent the need for a centralized exchange and generally improve their trading experience.
However, decentralized exchanges are typically reliant on the protocols of de-fi development platforms like Ethereum. This means that many of these exchanges exclusively deal with tokens on specific protocols like ERC20. However, the growing popularity of these exchanges means that all tokens may be covered by this new technology.