Difference Between Centralized, Decentralized and P2P Cryptocurrency Exchanges-Crypto soft india

Cryptocurrency Exchanges has been modifying its architecture from the day of its birth. In the very initial days, Cryptocurrency Exchanges are designed to function in the centralized network.

Centralized Exchange
Decentralized Exchange
P2P Exchange

What are Centralized Exchanges?

Centralized Exchanges are the earliest version of exchanges. It is the kind of ecosystem built with trust as the backend. Here, the admin of the Exchange has direct control on trading All the data, funds are stored in the central server. i.e, the single pathway for data. It enables quick and easy data handling.

What are Decentralized Cryptocurrency Exchanges?

Decentralized Exchanges or DEX evolve with the primary concern of solving the problems and inconveniences in the centralized exchanges. This platform runs directly on the blockchain network. Here, trading happens automatically under smart contracts without the involvement of third parties.

Benefits of decentralized exchange

Security

The most indispensable and notable benefit in the DEX is security. The chances of hacking and theft are very low here as all the funds are stored outside the exchange under the trader's governance.

Secured Data Storage

All the transaction data, users' data are stored in the distributed ledger technology which is immutable and can’t be stolen.

Anonymous trading

DEX Supports anonymous trading KYC is not a compulsion in decentralized exchanges.

How P2P Exchange works?

In DEX, the transaction speed is less than centralized exchanges. Peer to Peer Exchange matches people behind the trading and the platform acts as the Escrow account during transaction.

It support
Fiat to crypto trading (via bank)
Crypto to crypto trading

Thanks for reading our content. For more details, kindly visit our website mentioned below;
Crypto Soft India
1/124, DLF IT Park Rd, Ramapuram, Chennai,
Tamil Nadu 600116 ,
https://www.cryptosoftindia.com/ ,
+91 6385108373.