A crypto exchange is an online platform that allows crypto enthusiasts to take part in cryptocurrency trading. It is also known as a crypto marketplace or digital marketplace. A crypto exchange is built on blockchain technology and inherits its advantages like transparency, security, and privacy. It operates 24*7 unless there is server maintenance or an upgrade.


A cryptocurrency exchange allows users to buy any fraction of cryptos and make faster transactions. All the trade orders get stored in the order book. There are four types of cryptocurrency exchange. They are,

Centralized exchange:
This exchange allows traders to buy and sell cryptocurrencies, where a third party monitors all the transactions. All their transactional details get saved on the blockchain. One of the biggest advantages of centralized exchange is that verified users can retain their password in case they forget it.

Decentralized exchange:
In a decentralized exchange, both buyers and sellers can trade and complete the transactions without third-party involvement. Similar to a centralized exchange, all the details get stored in the blockchain.

P2P exchange:
P2P exchange is a decentralized crypto exchange that allows both the buyers and the sellers to connect and complete their trading directly without any involvement of any central authorities.

Hybrid exchange:
Hybrid exchange solves the difficulties of both centralized and decentralized exchanges by inheriting the features of both the exchanges like liquidation management, escrow management, and flawless transactions.

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