Exchanges — Conduit to Digital & FIAT Currencies

Cryptocurrency exchanges are platforms that facilitate the trading of cryptocurrencies for other assets, including digital and fiat currencies.

We have two major types of cryptocurrency exchanges which are:

  • Centralized Exchange.

These exchanges have critical differences and they both offer solutions to different problems crypto asset owners may have. Let’s give it a little dive to know what the types of exchanges entails

Centralized Exchange

A Centralised exchange (CEX) is an organization that allows crypto traders to buy and sell crypto assets on a large scale. They act as a third party between a buyer and a seller. Approximately 99% of all crypto transactions go through centralized exchanges.

One of the first centralized exchanges is Binance which was founded in 2017 and according to Coingecko, it sees a daily volume of $11,163,054,530.

Some examples of centralized exchanges are: Coinbase, Gemini.

Advantages of Centralized Exchanges.

  1. User-friendly: Centralized Exchanges offer a familiar, friendly way of trading and investing in cryptocurrencies.

Disadvantages of Centralized Exchanges.

  1. Transaction Fees: Centralized exchanges often charge high transaction fees for their services. This can be especially high when trading in large amounts.

Decentralized Exchange

A decentralized exchange (DEX) is a blockchain-based platform that lets traders buy and sell tokens without a middleman, and directly from their web 3.0 wallets, without the need to deposit to a trading account.

Popular decentralized exchanges are built on top of layer-one protocols, meaning that they are built directly on the blockchain.

Examples are UniSwap, and PancakeSwap.

Advantages of Decentralized Exchanges.

  • Anonymity: Decentralized exchanges do not require customers to fill out know-your-customer (KYC) forms, offering privacy and anonymity to users.

Disadvantages of Decentralized Exchanges:.

  • Complexity:. Users of decentralized exchanges must remember the keys and passwords to their crypto wallets, or their assets are lost forever and cannot be recovered. This makes it less convenient for users.

There are a myriad of things that can be done on a cryptocurrency exchange and a sure and secure platform that can be used to enjoy the amazing features of a cryptocurrency exchange is the “SCALLOP EXCHANGE”.

On the Scallop Exchange, you can:.

  • Deposit crypto(buy with a credit card) and sell your crypto on the market.

Read more on how you can make the most out of the quick and easy Scallop Exchange here:.

https://scallop-1.gitbook.io/scallop-learn-1/guides/scallop-exchange/getting-started-on-scallop-exchange

You can also follow the easy steps on how to connect your Metamask wallet on the scallop decentralized dashboard.

https://stake.scallopx.com/welcome

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Precious

Content Creator || Blockchain Ambassador || Public Speaker || Community Management. Reach out to me: ekerekepreciousimeh@gmail.com