A crypto exchange platform exchange is a platform where cryptocurrencies are exchanged or purchased.
Crypto exchanges can be divided into two main categories: centralized and decentralized platforms.
Centralized exchanges (CEXs) operate like traditional financial institutions, offering user-friendly interfaces and helpdesk services.
The downside is the reliance on the exchange for fund storage, which may result in fund mismanagement.
Conversely, decentralized exchanges (DEXs) enable users to transact independently. Using blockchain technology and smart contracts, DEXs reduce the risk of hacks but may challenge beginners due to technical interfaces.
To select the right crypto exchange, users must assess usability, safety, and costs. By understanding the key features of CEXs and DEXs, individuals can make informed trading decisions.
