Just under a decade after the creation of Bitcoin by the still unknown Satoshi Nakamoto, this brave new world still continues to march on despite the unaccountable doom predictions it had to bear over time.  Cryptocurrencies are becoming are a mainstay in the modern way of doing business as more and more businesses are getting more comfortable accepting the likes of Bitcoin, Ether, and a host of other Altcoins as means of exchanges.

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With continuous growth in adoption, Exchanges which are the main means for one to get their hands on crypto assets have also evolved. The creation of decentralized exchanges was borne out of the necessity to create a seamless, easy to access, and hassle-free crypto portal for individuals and businesses. Many Decentralized exchanges have come, and some have not really taken off, as with any new innovation there are certain challenges that manifest in the growth of such technology. 

Some of the more pressing problems that decentralized exchanges face today include:

- **Lack Of Liquidity**
All decentralized exchanges have one feature in common, in that they do not accept any form of fiat payments as such the trader needs to first go through a centralized exchange to buy either Bitcoin or Ether with their fiat currency before transferring same to the decentralized exchanges to trade for other tokens.  This creates a liquidity issue for these new form of exchanges, as almost all transactions happen with the traders in full control over their digital assets, there is little left in the hands of the exchange in form of liquidity to fill in order gaps or other emergencies that might arise while trade goes on. This lack of liquidity is also problematic as most investors take it as a good sign of the health of a business, limiting any expansion dreams of these decentralized exchanges.

- **Complexity** 
One irony about decentralized exchanges is that although they were created to make trading in cryptocurrencies easier for users all over the world, some argue that the reverse has been the case in reality. As earlier stated you need to own actual crypto assets a decentralized exchange accepts (usually Bitcoin and Ether) before you are able to trade. After actually depositing, sometimes the trader needs to go through several hoops and other currency peers before they reach their preferred destination. For the newbie or for the not-hardcore trader, this can be a tad tedious and discourages many from using decentralized exchanges. 

- **Money Laundering**
Decentralized exchanges don’t require much in terms of KYC from their customers, as in most cases all a user needs to get enrolled is an email address. This creates problems for certain decentralized exchanges, especially those headquartered in countries that have strict AML laws. Some also say that decentralized exchanges can be easy prey for hackers, or people trying to fund terrorist endeavors, although there hasn’t been any actual serious incident so far to back those claims.

Much like the rise of Bitcoin and the whole industry it created, decentralized exchanges are pretty new and will need some time to hone their skills and delivery. There might be much more challenges ahead for these new creations but the hope is, like the blockchain technology that powers them, decentralized exchanges will be able to shed their baggage in time, and still deliver the seamless user experience, they were built to provide in the first place.