Crypto exchanges act as the foundation of the cryptocurrency market, enabling users to buy, sell, Bitcoin and trade digital assets.
These exchanges typically fall into two main types: centralized and decentralized.
Centralized exchanges (CEXs) are managed by companies, offering ease of use for traders.
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 enhance security but can be complex to navigate.
Choosing a crypto exchange depends on user needs and priorities. Knowledge of both types ensures better crypto experiences.