Types of Crypto Exchanges

 Cryptocurrency Exchanges are online platforms developed for people to exchange their fiat currencies (traditional money/bank notes) for digital currencies or vice versa. As per the customer’s suitability, government regulation, competitive prices, Crypto exchanges are of three types: Centralized exchanges (CEX): In CEXs, a central authority regulates the financial transactions happening between buyers and sellers. This central authority or third-party intermediary charges extra brokerage fees from both sides for safer transactions. The best feature of these exchanges is that governments or any other legal administration do not govern the flow of cryptocurrencies. Therefore, the only risk involved in these exchanges is a single authority, which makes it vulnerable to fraud and scams.  Decentralized Crypto Exchange (DEX): In DEXs, there are no central entities or third-party intermediaries involved in the financial transactions happening between the traders. DEXs are more authentic and secure as compared to Cass. The best attribute of these exchanges is their low transaction fees and prompt process. Hybrid Exchange (HEX): Just as the word suggests, ‘Hybrid Exchange’ is the blend of both the CEX and DEX exchanges in one. The aim is to bring convenience to the end-user of CEX and offer security like DEX.