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Which Is The Best Cryptocurrency Exchange Platform As A Beginner?

2022-05-09 17:08:40
What Is The Most Popular Cryptocurrency Exchange?
Everyone is getting interested in cryptocurrency including different professionals, individuals, organizations, and nations of the world. As a newbie in cryptocurrency, you need guidance as to which platform is the best fit for you. Like other financial institutions, a Cryptocurrency exchange is a marketplace where you buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, Shiba Inu, and SafeMoon.

There are different types of cryptocurrency exchanges, these are:
· Centralized exchange
· Decentralized Exchange

What Is A Centralized Exchange?

A centralized exchange is also known as CEX, it is an organization that coordinates crypto transactions on a large scale online. Centralized exchanges include Binance which is the number one cryptocurrency exchange in the world and Gate.io, a top 7 global cryptocurrency exchange platform.

When compared to decentralized exchanges, CEX performs more transactions than decentralized exchanges. Binance, which is a centralized exchange, performs more than $20 billion in transactions daily and has launched its own DEX platform, while the Gate.io trading platform has a daily average trading volume of $1.2 billion in spot and contract trading. According to KMPG, the centralized exchanges are responsible for more than 95% of crypto trading and they are popular as of February 2022. Just like the DEXs, centralized exchanges allow for peer-to-peer trending of cryptocurrencies.

What Is A Decentralized Exchange?

A decentralized exchange,also known as DEX, is a peer-to-peer marketplace where cryptocurrency traders make transactions directly without handing over the management of their funds to an intermediary or custodian. The largest DEX was created on the Ethereum blockchain in 2018 called UNISWAP. As of the time of writing this article, the second-largest DEX is Pancake swap. Uniswap carries out a daily transaction of $2 billion.

In 2018, GateChain-based DeFi platform “HipoDeFi” was also built. The company announced that the updated HipoSwap protocol presents an innovative “maker pool” model for the decentralized finance space. Therefore DEXs eliminate the need for middlemen and all traders and investors to do their trade directly with each other.
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