Classifications of Cryptocurrency Exchanges

1.Centralized Exchange

2.Decentralized exchanges

3.Hybrid cryptocurrency exchanges

Centralized cryptocurrency Exchanges

Any cryptocurrency exchange website which has a central authority (i.e) admin to control the trading activity is know as centralized exchanges.

In technical terms, This kind of cryptocurrency exchanges will store the traders private key in centralized cloud storage, and the customer will not be able to proceed trading without sending the amounts to the admins control.

Pros:

1. Easy to use

2. Secured

Cons:

As the exchanges stores private keys in cloud storage, it will become a honey pot for hackers to steal all the funds.

Decentralized Cryptocurrency exchanges

This kind of cryptocurrency exchanges will not mediate the trading with the governance of the website admin. Which means the admin has no control over the funds, and the private keys will not be stored in any third party cloud storage.

so the trader have to trade cryptos directly from their own hardware wallet.

Pros :

1. Fast

2. Peer to Peer

Cons :

* Maximum support to crypto to crypto trading alone, Especially with ethereum.

Now in this Digital era, Cryptocurrency business becomes the hot trend. Many business people are willing to start their own business in the domain. By making use of Cryptocurrency Exchange Script, any business person can kick start their own Cryptocurrency Exchange.