What are the main types of cryptocurrency exchanges?

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Crypto trading and investments are very popular, and many new crypto holders have joined this market. Digital assets are highly volatile, which allows for many earning opportunities. Crypto rate fluctuations open the opportunity to speculate and receive profits daily and in the long term. Some trading strategies involve day trading; others take a couple of weeks to a few years. Every user picks a strategy depending on one’s purposes.

Here are the most often used trading tools:

Futures derivatives
Trading with leverage
Margin
Spot markets
Staking
Etc.

All these tools are available on crypto exchanges. The main types of cryptocurrency exchanges:

Centralized (CEX)
Decentralized (DEX).

Let’s begin with a decentralized cryptocurrency exchange.

DEX

Such platforms are popular among experienced traders. All transactions and operations with digital assets occur directly between users’ wallets. DEX does not hold clients’ funds, it is only an intermediary, so there is no guarantee for users’ safety. DEX usually have a limited number of features; buying crypto with fiat currencies is impossible.

CEX

CEX is considered to be the safest crypto exchange. Such platforms provide maximum security for users’ funds and offer various tools for account safeguarding, such as two-factor authentication, etc. Centralized exchanges allow buying crypto with bank cards and offer a wide range of trading instruments.

CEX require user registration and verification, and it helps track and control illegal activity and blocks suspicious users immediately before they manage to harm other users.

Centralized exchanges are easier to handle for beginner traders. Besides, they usually offer educational sections and customer support.

CEX operate legally and adhere to strict regulatory requirements regarding anti-money laundering and control over transactions connected to terroristic activities in the world.

We suggest using the cryptocurrency exchange platform WhiteBIT – one of the biggest in Europe, registered in Estonia. This service is easy-to-handle for a novice user – it has a flexible interface and many investment options.

Radhe Gupta

Radhe Gupta is an Indian business blogger. He believes that Content and Social Media Marketing are the strongest forms of marketing nowadays. Radhe also tries different gadgets every now and then to give their reviews online. You can connect with him...