Crypto trading exchanges serve as the foundation of the cryptocurrency market, providing platforms where users can buy crypto, sell, and trade digital assets.
Crypto trading platforms can either be centralized and decentralized exchanges.
CEXs function as third-party intermediaries, offering accessible tools and enhanced trading options. On the downside, these platforms require third-party custodianship, raising concerns over security and transparency.
On the other hand, decentralized exchanges prioritize user autonomy, enabling self-custody of assets. Despite their focus on privacy and security, DEXs can be less user-friendly.
Choosing the right exchange, key considerations like safety, costs, and available cryptocurrencies are critical to evaluate.
Ultimately, crypto trading exchanges form the bridge between users and the crypto ecosystem. Understanding their features and risks, users will maximize their trading potential.