Cryptocurrency Exchanges are an integral part of the world of cryptocurrencies. Today, large volumes of cryptocurrency transactions can be found in exchanges such as Binance. But there are different types of these exchanges that have different functions and features, and each has its own advantages and disadvantages. In this post, we want to review three types of Exchange currencies; Centralized (CEX), Decentralized(DEX), and hybrid cryptocurrencies, including their features and benefits. So stay with me until the end of this post to have an overview of the world of cryptocurrency Exchanges and their performance.
Centralized Cryptocurrency Exchanges (CEX)
Centralized cryptocurrency Exchange or CEX is one of the most well-known exchange in the world of cryptocurrencies. These exchanges have the same function as traditional stock exchanges and the buyer and seller gather in the space of this exchange. In fact, these types of exchanges act as a middle-man between the buyer and the seller and you have to trust this exchange to manage your assets. This is what we call centralized.
One of the biggest advantages of CEX exchanges is that they are easy to get started. Also, in most of these CEXs, you can start trading cryptocurrencies by entering an email and password. But one of the major issues with CEX exchanges is their vulnerability to hacking. So if you are a newcomer to the world of cryptocurrencies and want to trade cryptocurrencies without the hassle and long steps, Centralized cryptocurrency exchanges are one of the best options for you.
You can see some Centralized cryptocurrency exchanges in the following list:
Advantages and Disadvantages
Advantages
- Easy user interface
- High liquidity
- Fast transactions
Disadvantages
- Danger of hacking
- Price manipulation
Decentralized Cryptocurrency Exchanges (DEX)
Decentralized Exchanges, or DEX, offer users a different function. In this type of exchange, no company acts as an intermediary for users’ assets. So, buyers and sellers come together in a decentralized exchange space and process transactions directly between each other and a peer-to-peer trade will be formed. In short, in these types of exchanges, your assets are managed by yourself and there will be no third party. These types of exchanges create special security for users because there is no possibility of a security breach. Because all transactions that are registered in this type of exchange are using smart contracts and decentralized applications.
You can see some Decentralized Cryptocurrency Exchanges in the following list:
Advantages and Disadvantages
Advantages
- The risk of hacking is low
- high security
- Anonymity
Disadvantages
- More complexity than CEX
Hybrid cryptocurrency Exchanges
Are you looking for an Exchange that can experience both CEX and DEX? Hybrid is a newer and more advanced generation of cryptocurrency exchanges. In other words, you can experience the functionality and liquidity of a CEX and the security of a DEX using Hybrid exchanges. So with Hybrid cryptocurrency exchanges, you can experience fast and high-security transactions.
You can see some Hybrid cryptocurrency exchanges in the following list:
- Qurrex Hybrid Exchange
- Legolas Hybrid Exchange
- Eidoo Hybrid Exchange
Advantages
- A combination of CEX and DEX
- Excellent security
- Analytical tools
Conclusion
Having read to the end of this post, It’s up to you to decide which Exchange is the best option for you. Depending on the features of each of these exchanges and your level of knowledge and access, you can use these Exchanges. Also, if you are looking for the best Exchanges in the United States, we have prepared a complete list of these exchanges along with an overview and review of their benefits (Here)