A trade crypto exchange is a digital hub where cryptocurrencies are bought, sold, and traded.
These exchanges are broadly categorized into two main types: centralized and decentralized.
Centralized exchanges (CEXs) operate like traditional financial institutions, ensuring user-friendly interfaces and customer support.
The downside is the reliance on the exchange for fund storage, which increases exposure to hacks.
On the other hand, decentralized exchanges (DEXs) facilitate direct trades without intermediaries. Using blockchain technology and smart contracts, DEXs reduce the risk of hacks but may challenge beginners due to technical interfaces.
Choosing a crypto exchange is influenced by personal preferences and goals. Knowledge of both types helps users maximize opportunities.
