Cryptocurrency Exchange || DEX, CEX and Some Popular Exchanges

Pixabay

An exchange is no new word for many. It is a popular word but has been overlooked lately. Most people mistake exchanges as wallets. Cryptocurrency exchanges are digital systems that allow users especially traders to carry out exchanges on digital assets which includes buying and selling of these assets either for other cryptocurrencies or for fiat money.

They are online exchanges where there is a price tag for cryptocurrencies based on their value and on their demand and supply. The existence of these digital platforms has made it possible for assets to be exchanged without major difficulties of going to a financial institution and then spending more. This exchange can be fiat money for cryptocurrencies or cryptocurrencies for fiat money anywhere in the world so far as you have a mobile phone to process these transactions and guess what?

The rates or charges are low or most times free which makes it more attractive than traditional methods. These exchanges don't only allow exchanges. The store cryptos and convert crypto to another. These exchanges or purchase of virtual cryptocurrencies can be done with virtual platforms like PayPal or neteller, peer-to-peer which is the most common and frequently used, credit or debit cards and even bank transfers for these cryptocurrencies.

As the name implies, it involves an exchange of cryptocurrencies and involve two users, the buyer and seller. To carry out transactions on an exchange, you must either buy or you sell.

• Buying Cryptos on an exchange: if a user wants to buy, he must first check or search for an order through the filter icon by inputting the amount you want to buy and then search for the prices at which you are able to pay for transactions or buy.

• Selling: this is also known as the buy request. The user must specify how many assets he want by inputting the price or searching for buyers that would buy the total coin he wants to sell. You can as well convert it from crypto to cash if you're using binance exchange via P2P.

• Binance
• Probit
• Bittrex
• Huobi Global
• CoinDCX
• Bione
• Upbit
• Atomars. etc

Coin

Exchanges allow transactions from other exchanges at different networks.

There are basically two types of exchanges which are the centralised and decentralized exchange.

• The Centralized Exchange: decentralized exchange are just like traditional exchanges but our virtual and is owned by the company that operates it, meaning to say it is controlled and managed by a central user. Users don't have access to their private keys as it is centralised and approved by a central authority. Some of these centralised exchanges are binance, Poloneix, Bittrex, Coinbase etc. of which binance is the largest exchange currently.

• Decentralized Exchange: decentralized exchange current operated by any company compared to centralised exchanges and they aren't under any supervision, control or management by any central authority or single user. They make use of blockchain technology which is decentralized. A decentralized exchange is similar to traditional exchange but unlike the latter, decentralized exchange operates in a decentralized manner and doesn't need intermediaries for its operations or transactions. Some of these exchanges are the Airswap, Uniswap, Just swap, EtherDelta, Khyber Network etc.

In conclusion, we can see that exchanges our digital platforms that supports the exchange of crypto assets convention of crypto for fiat money and carrying out this exchange virtually through P2P or credit Debit Cards Differences between these two exchanges, how to run a transaction on a centralised exchange and that of a decentralized exchange would be discussed in my next post.

All pictures are taken from my Binance Exchange

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have