The Cryptocurrency Exchange Architecture refers to the underlying structure that supports the trading of digital currencies. There are three main types of architecture used in crypto exchanges:
- Centralized Exchanges (CEX): These are the most common type. In a centralized exchange, a single organization manages the platform, handling trades, security, and user accounts. Examples include Binance and Coinbase.
- Decentralized Exchanges (DEX): In a DEX, trading occurs directly between users without the need for an intermediary. These exchanges run on blockchain technology, providing more privacy and control to users. Uniswap and PancakeSwap are examples.
- Hybrid Exchanges: A combination of CEX and DEX, hybrid exchanges aim to provide the benefits of both centralized and decentralized systems, offering higher security and faster transactions while allowing more user control.
Understanding these architectures helps users choose the right exchange based on their needs for speed, security, and decentraliza
