How cryptocurrency exchanges differ

🏷 Centralized exchanges, CEX, are a popular option for newcomers to cryptocurrency investment and trading. Such platforms include a high-quality system of automation of work with clients.

Here, transactors interact with the exchange as an intermediary to help store funds and conduct transactions, but lately this has been causing security problems. The larger the amount of transactions on exchanges, the more money fraudsters take from people — in 2018, hackers stole more than $1 billion. One of the main reasons for hacks and thefts is said to be the lack of anonymity — funds are in “hot” wallets.

The largest exchanges in this segment are Binance, Coinbase, Huobi, Kraken.

🏷 Decentralized exchanges, DEX — on these exchanges there is a possibility of anonymous transactions. Clients of the sites do not have to use “hot” wallets, DEX exchanges do not have access to users’ private keys — and these factors make them more secure. This option is more suitable for experienced traders and investors who are willing to sacrifice time for the sake of their own funds. Since the interface of the platforms is often not very simple, to use DEX exchangers you need a certain skill.

An important factor in working with DEX exchanges is the cost of “gas”, which is present on the platforms. It is often unprofitable to convert cryptocurrencies because of the “gas” price on transactions. When the market for DeFi projects is actively developing, this is an important indicator when choosing platforms to use. Therefore, for beginners and traders with small volumes, transactions on DEX are not always profitable.

Key representatives: #Uniswap, #Suhiswap, #1inch.

🏷 Decentralized P2P exchanges are another part of the cryptocurrency market ecosystem. The lowest commissions are found on such platforms. Since they are peer-to-peer networks, they require literally no maintenance costs. The important factor is that the price of Bitcoin, Ethereum or USDT is formed by people, thanks to them, prices are set and payment methods are selected. Platforms act as guarantors in these transactions: security is guaranteed by Escrow.

Some P2P-platforms ask to pass KYC, therefore every user who wants to choose this or that platform should get acquainted with its commissions and the principle of work.

P2P platforms are popular: you can not only buy or sell cryptocurrency, but also make money on it — without risks. All key P2P exchange platforms are on our aggregator 13Exchange — in one “window” there are deals of key industry players: #Paxful, #LocalBitcoins, Bitzlato.

🏷 #13Exchange #bitcoin #ethereum #altcoin #p2p #peertopeer