3 Key Types of Cryptocurrency Exchanges

The whole cryptocurrency economy relies on exchange platforms, but did you know that there are different types out there?

Let’s take a look at a few key types you can use to trade crypto coins.

Instant Exchangers

An instant cryptocurrency exchange is possible if you know where to look. Instant exchangers make it easy for you to trade your coin assets to another, usually within seconds or under a minute.

They don’t offer other services or have features for normal crypto trading, but they make up for that with blistering speed. You can expect your funds to be converted instantaneously and cover a wide variety of coins.

These platforms source from retail exchanges and offer many trading pairs in one central location. Signup is easy and the interface is usually clean and user-friendly.

Retail Exchanges

One of the most popular exchanges that cover everyone, including beginners and advanced coin enthusiasts alike. Like instant exchangers, retail sources have interfaces that are easy to use and convenient so as to make transactions seamless.

A custodial agreement means these platforms hold your private keys so you won’t have to enter them on every trade. To lessen the risk of losing valuable commodity you will need to make sure the platform is trustworthy and insured.

Retail platforms may allow fiat to crypto or crypto to crypto trading. As such, they’re under closer scrutiny.

Decentralized Exchanges

DEX, or decentralized exchanges are a sort of in-betweener for instant exchanges and retail platforms.

These systems use protocols and networks to transfer funds via wallet to wallet or user wallets. This way, both accounts are secure and there’s no leak of personal information while buying or selling crypto coins.

Decentalized exchangers are without moderating transactions or a safety net such as escrows. You’ll need to doubly make sure the address of the user is correct before hitting the submit button.​​​​​​