Types Of Cryptocurrency Exchanges You Should Know !!!

Article about Types Of Cryptocurrency Exchanges You Should Know !!!

Published by

Aug 5, 2021

If you want to buy and sell bitcoin or any other cryptocurrency you will need a cryptocurrency exchange to Trade the currencies. These services are similar to works like a stockbroker, giving you the tools to trade cryptocurrencies like bitcoin, ethereum and dogecoin. Some Cryptocurrency exchanges make it easy to trade cryptocurrencies with low fees and secured manners.

Types of Cryptocurrency Exchanges 

Centralized Cryptocurrency Exchange 

Decentralized Cryptocurrency Exchange 

Hybrid Exchange 

Centralized Cryptocurrency Exchange 

Centralized Exchange is the first innovation in the blockchain industry to trade cryptocurrencies. 

In centralized exchange you have to trust a third party to monitor the transaction and secure the digital assets on behalf of the Traders. Their Transactions  are not tracked on the blockchain. 

Centralized Exchanges require you to submit your (Name,Email id,Mobile Number)  personal information for your verification.

Centralized exchanges allow users to trade Fiat - Cryptocurrency and Crypto- cryptocurrency pairs. 

Pros of Centralized Exchanges:

  • Liquidity

  • Volume 

  • Speed

Cons of Centralized Exchanges:

  • Custody 

  • Security

  • Manipulation 

Decentralized Cryptocurrency Exchange:

Decentralized Exchange is a kind of cryptocurrency exchange that allows users for peer-to-peer cryptocurrency transactions to take place online securely and without the need for a middleman. Users do not need to transfer their cryptocurrencies (digital assets) to the exchange. It reduces the risk of theft and hacking of centralized Exchanges. 

Decentralized Exchange Works on Different Approaches. The Transactions are complete without an intermediator. DEX supports only Crypto - Crypto Trading.  In Decentralized exchange everything is based on Smart Contract. 

Pros of Decentralized Exchanges:

  • Privacy

  • Security

  • Decentralized Server

Cons of Decentralized Exchanges :

  • Complexity

  • Lack of Fiat Payments

  • Liquidity Struggles

Hybrid Cryptocurrency Exchange :

Hybrid exchange is a combination of both Centralized and Decentralized Exchange. It mainly focuses on the Liquidity of Centralized Exchange, as well as the complexity and security of Decentralized Exchange Platforms.

Pros of Hybrid Exchanges:

  •   Users can trade both centralized and decentralized exchange platform

  •   Provide Real Time Service Access

  •   Incorporates solutions based on blockchain technology

These Cryptocurrency exchanges play a major role in the Blockchain industry. We might possibly expect most of the entrepreneurs to launch a cryptocurrency exchange with the latest futures. There are a lot of blockchain development companies in the blockchain industry providing cryptocurrency exchange services. Bitdeal  is  India’s Leading Blockchain development company provides unique cryptocurrency exchange development services in a secure manner.

Articles authored by alex jaxon

Published: Sep 8, 2021