What are the types of crypto exchanges?

In order to keep up with the fast-paced crypto market, it’s important to learn about different terminologies and stay updated with the latest trends. Understanding and knowing about crypto exchanges is also crucial to gaining knowledge about the market. The two main types are discussed below:

  1. Centralized Exchanges

Centralized cryptocurrency exchanges are robust online platforms facilitating the buying and selling of cryptocurrencies. Well-known names in this category include Binance, Kraken, and OKEx. These platforms act as intermediaries, connecting buyers and sellers while providing a secure environment for trading.

  1. Decentralized Exchanges (DEX):

Decentralized Exchanges operate without a single controlling authority, offering users a more autonomous trading experience. Examples of DEX platforms include Uniswap, 0x Protocol, Kyber, and Compound. These exchanges leverage blockchain technology to enable users to trade directly with one another, promoting transparency and reducing the need for intermediaries. To interact with a DEX you would require a web3 wallet such as MetaMask, Trust Wallet, Bitget wallet etc.

Click here to learn more about web3 wallets.

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