Cryptocurrency exchange

A cryptocurrency exchange is a digital platform that allows users to buy, sell, and trade various cryptocurrencies. These exchanges serve as intermediaries, facilitating the conversion of one cryptocurrency into another or into traditional fiat currency. Cryptocurrency exchanges play a pivotal role in the broader cryptocurrency ecosystem by providing liquidity, price discovery, and a marketplace for participants to engage in digital asset transactions.

Types

• Centralized Exchanges (CEX): Centralized exchanges are operated by centralized entities. They act as intermediaries, holding users' funds and executing trades on their behalf. Examples include Binance, Coinbase, and Kraken.
• Decentralized Exchanges (DEX): Decentralized exchanges operate without a central authority. They allow users to trade directly from their cryptocurrency wallets, promoting greater user control and security. Examples include Uniswap, SushiSwap, and PancakeSwap.
• Hybrid Exchanges: Some exchanges combine elements of both centralized and decentralized models, offering the benefits of both worlds. These platforms seek to address issues related to scalability, speed, and user control.

Cryptocurrency Exchanges - Overview

How does a crypto exchange work