We believe that you are interested in putting your money in the Crypto space as you are reading this article. It is great that you are willing to develop a deeper understanding and knowledge of the Crypto world before entering.
There are a lot of people who are interested in the Crypto space and also want to make some money from here. So, you are not alone who are searching for more information. You might encounter some unpleasant events of scam attacks and hacking.
In order to avoid that, you should know as much as possible about this unknown Crypto space and take the necessary precaution. To learn more about the security threats, you should check the bitcoin hack review.
Table of Contents
What Cryptocurrency Exchanges Are
So, as you are here to know about Cryptocurrency exchanges, let’s start with the basic knowledge or the definition of Crypto exchange.
At the beginning of your Crypto days, you will need to trade Cryptocurrencies for other forms of assets, like fiat and digital currencies. Crypto exchanges are the platforms that facilitate it. Basically, here, you can buy Crypto coins and also liquefy them when you need them.
It acts as an intermediary between a seller and a buyer for making money through transaction fees and money.
Types Of Cryptocurrency Exchanges
Now, as you get a basic idea about what Cryptocurrency exchanges are, let’s get a detailed understanding of their type. Three types of Crypto exchanges are there. They are as follows.
Type 1: Centralized Cryptocurrency Exchange (CEX)
Centralized Crypto exchanges are the most known and also traditional in the Crypto space. All these exchanges are governed by the companies which provide fiat-to-Crypto and also Crypto-to-Crypto trading gateway.
The major advantage of using a CEX or centralized Crypto exchange is that the UX and Ui are super simple, easy to use, and also go along properly with quick response. Some of the CEXs let you trade just by registering with your email and writing down your password.
Some of the famous CEXs are,
Type 2: Decentralized Cryptocurrency Exchange (DEX)
Decentralized Crypto exchanges do the same job as a CEX or centralized Crypto exchange, but it does not have a central point. No company will be in charge of the assets. The mechanism is also a little different here.
In DEX, trades and transactions are automated by using decentralized applications and smart contracts. This particular thing is making it much simpler, as there is no possibility of a security breach. Of course, smart contracts have to be written well for that.
Here are some names of the DEXs,
Type 3: Hybrid Cryptocurrency Exchange (HEX)
As the name says, hybrid exchanges are a mixture of CEX and DEX. Here, you will get the faster transaction speed of a centralized exchange along with the enhanced security of smart contracts.
This new generation of Crypto trading marketplace is still under development. The most popular HEX or hybrid Crypto exchanges are.
CEX Vs. DEX Vs. HEX
Here is a simple comparison between CEX, DEX, and HEX.
|Centralized Cryptocurrency Exchange (CEX)||Decentralized Cryptocurrency Exchange (DEX)||Hybrid Cryptocurrency Exchange (HEX)|
|UI & UX||Super easy to use||A Little hard to use||Easy to use|
|Custody||Users trust CEX||Users own their funds.||Users own their funds|
|Matching Speed||Very fast.||Slow||Fast|
After reading this article, we believe you have already developed an understanding of Cryptocurrency exchanges. However, this Crypto space is new and also a bit complex. So, if you still have any doubts or queries, you can reach us.
We will try to come up with a relevant and eligible solution as soon as possible.
Till then, Happy Crypto trading!