Stepping into the crypto-verse can be super scary! But, its okay. We’ve all been there. We’ve all learned with time the do’s and don’ts of the crypto-verse. If you’re wondering what the key to success is, then we have one word for you. KNOWLEDGE!
Knowledge is power my friend and whoever said that knew what he/she was talking about! When it comes to crypto exchanges. It’s super important to educate yourself about the types of crypto exchanges available. Yeap! There are actually three types of crypto exchanges you need to know about. Before you set your foot in the crypto-waters!
Centralized Crypto Exchange (CEX)
It’s quite similar to a traditional stock exchange. A CEX functions as a middle man between two parties. It’s because the system is centralized, one party is placing their trust in another party with handling their money. The exchange holds onto the money of the user just like a traditional bank would.
You’re in complete control of the trade. All the good cards are in you’re hand. How you play them depends on you entirely! You can look up the market prices of the available cryptos on a particular exchange and make your final decision. You can trade fiat for another cryptocurrency (trading pair) and place an order. The exchange will happily find a seller to match your buy for you.
The popular platforms for fiat to crypto exchange are:
There are some crypto exchanges that only offer crypto to crypto pairing-purchase. Or you can get a different crypto for another crypto. It’s a crypto for crypto deal! Some of the most popular platforms for crypto to crypto trades are:
Decentralized Crypto Exchanges (DEX)
The blockchain technology has been a breath of fresh air for everyone! With the introduction of this revolutionary technology and the idea of digital currency into the markets has set a in motion a demand for decentralized transactions. The society has bluntly expressed it views for decentralized transactions and no need for the presence of intermediaries.
The sole purpose of DEXs are to remove the middle man to from the transactions. It’s a market place where the sellers and buyer interact with each other directly. That’s what has changed the dynamics of trading completely! Its more efficient and quick. No one has to wait for confirmation and there are no drags in trading. Everything happens in a jiffy!
The world is self-explanatory in itself. These crypto exchange are of the best kind. They are designed in a way, where a trader can get the best of both the CEX and DEX platforms. It provides the security and privacy of DEX. The first ever hybrid exchange Qurrex, was launched at the beginning of 2018. The platform is still looking for ways to be more efficient in its functions.
Whats The Best Crypto Exchange Way?
There is no right or wrong! While DEXs are a way better alternative to CEXs. The popularity of DEXs is low because of the lack of over all user support and commodity. So, all the crypto-enthusiasts need to make their vows to the DEXs!
So which person are you? CEX or DEX?