What are the types of exchange in cryptocurrency?

Cryptocurrency is a digital currency secured by cryptography. Cryptocurrency traders use crypto exchange platforms to buy, sell and trade these digital currencies. There are various types of cryptocurrency exchanges world wide, among them there are three major types of cryptocurrency exchanges used by the crypto traders. They are (CEX) Centralized exchange,( DEX) Decentralized exchange and (P2P) Peer to peer exchanges.

Centralized crypto exchange (CEX)

A (CEX) centralized crypto exchange is a platform which acts as an intermediary between buyers and sellers and operated by a central authority. like a traditional bank, Here the funds are deposited in an account by the user which acts as a controller of those funds. The funds are handled safe and securely by the platform. The crypto exchange platform executes trades on behalf of the buyers and sellers. It has a high liquidity rate compared to any other types of exchanges. As it has the involvement of a third party, it is vulnerable to hacks and thefts.

Decentralized crypto exchange (DEX)

(DEX) decentralized crypto exchange is a platform which contacts blockchain’s smart contracts for transactions, instead of employing any intermediates. In this exchange, the transaction is done directly by the buyer and seller without any central authority. The user remains in control of their private key. It allows highly secure transactions as there is no involvement of third parties. But, it has a low liquidity rate compared to centralized exchanges.

P2P crypto exchange

(P2P) Peer to peer is a crypto exchange platform which does not require any intermediate. It connects buyers and sellers directly. The cryptocurrencies are hold by the escrow agent until the payment is confirmed and the funds are released to the sellers. Anonymous individuals or miners verify and approve each and every transaction. As this exchange gives total autonomy to users, it is more resistant to thefts and hacks.

These are all the three major types of cryptocurrency exchanges. Clarisco is one of the best cryptocurrency exchange development services companies, which offers all types of cryptocurrency exchanges available worldwide. If you are interested in investing in any type of crypto exchanges, feel free to contact the below mentioned address and speak to our experts now!

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