Check with seller Difference Between Centralized, Decentralized and P2P Cryptocurrency Exchanges chennai

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 as days go, this business gains popularity and stands straight as a promising business model. Later then, technology demands Crypto Exchanges to incorporate multiple dimensions.

The core design of crypto exchanges is to act as the platform where one can buy or sell virtual currencies. Based on the working methodologies, functionalities, integrated features, service they are broadly classified as

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.

How Centralized Exchanges Work?

Centralized Exchanges more or less functions as a bank. The admin is the one and only the central authority of the exchange.

It allows

Fiat to Crypto trading
Crypto to Crypto trading


What are Decentralized Cryptocurrency Exchanges?

Decentrailzed 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.

Atomic Swap

Atomic Swap is the kind of technology incorporated in the DEX, that let traders exchange the pair of Cryptocurrencies belonging to a distinct blockchain network.

No Splitted Trading

In DEX, the user can’t implement splitted trading as all the order matching is under a smart contract. End to end trading alone can be executed.

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

Escrow

Escrow is the fundamental thing in P2P Exchanges, all the transactions are handled securely within the escrow wallet

Custodial assets

Traders need to send cryptos to the Escrow wallet of the exchange during trading but they no need to store assets on the exchange.

OTC trading

OTC trading is supported here, traders can sell cryptos in the exchange and can get the desired amount via banks or in person.

Key Benefits

Secured trading
Fast transaction
Anonymous trading

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