Types of cryptocurrency exchanges

[Nite]

Different kinds of cryptocurrency exchanges exist, each providing its own set of unique features and benefits. The most common types include.

Centralized Exchanges (CEXs)
These are the most popular type of exchanges, where users can trade cryptocurrencies through an intermediary. CEXs act as a third-party between buyers and sellers, managing the order book and facilitating trades. Some examples include Binance, Kraken and Coinbase.

Decentralized Exchanges (DEXs)
These exchanges operate without a central authority, allowing users to trade directly with one another in a peer-to-peer fashion. DEXs use smart contracts to facilitate trades, ensuring that all transactions are secure and transparent. Examples of DEXs include Uniswap, Sushiswap, and Curve Finance.

Hybrid Exchanges
These exchanges combine the features of both CEXs and DEXs, offering users the security and transparency of a decentralized exchange with the ease of use of a centralized exchange. Examples of hybrid exchanges include Binance DEX and Kyber Network.

 

[Suba]

Your description of the types of crypto exchanges is correct, so I just need to complete your thread. CEX works like a stock exchange and also acts like a bank accepting deposits and holding your crypto, although almost all CEXs have crypto/crypto trading pairs but not all CEXs have fiat money/crypto pairs. Being a centralized exchange means it is regulated by a third party and even the government can also freeze your account. CEX also has advantages such as high trading volume and liquidity, but also disadvantages such as being vulnerable to hacking attacks, operating under government regulations. Meanwhile, DEX without third parties allows users to carry out P2P controlled by smart contracts, there is no manipulation of prices and fake trading volumes. There are several types of DEX that I know of such as: aggregator exchange, swap and order book.