The fundamental purpose of Cryptocurrency Exchange is to act as the platform where one can buy or sell Cryptocurrencies. Depending on the function, working methodologies, Design, Crypto Exchanges are broadly classified as 

lCentralized Exchange

lDe Centralized Exchange

lP2P Exchange

 Centralized Exchange

centralized Exchanges more or less functions as a bank. The admin is the one and only the central authority of the exchange. Users store their own assets inside the exchange. Traders of the exchange might have their own individual private keys to access their Crypto wallets but all the assets are stored in the Centralized Server.

It allows

· Fiat to Crypto trading

· Crypto to Crypto trading

It supports

lSpillted trading

lMultiple Crypotcurrency Wallet

lTrade Matching Engine

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.  

It supports the only crypto to crypto trading, fiat to crypto trading is not  applicable in the case of  DEX

ØAtomic Swap

ØNoncustodial assets

ØMultiple Cryptocurrency wallet support

P2P Exchanges

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

It holds

lEscrow

lCustodial assets

lOTC trading

Explore the working and features of these exchanges in the Original Article:

Difference between Centralized, DEX, and P2P Cryptocurrency Exchanges

Bitdeal is the leading Cryptocurrency Exchange Software Development Company provides Crypto Exchange Development Services, by joining hands with bitdeal any entrepreneur can start any kind of Crypto Exchange based on their business needs

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