Cryptocurrency is a digital asset based on the blockchain networks. Before the exchange platforms, only transactions and mining were the way through to earn Cryptocurrencies. After the introduction of Cryptocurrency Exchange platforms, one can easily deal in different types of Cyptocurrencies easily. An Exchange is a platform which allows its customers to purchase or sell the digital assets. In addition, exchanges also take a little bit profit in order to do exchange digital assets fluently.

Firstly, if we want to use an exchange platform we have to register in that particular platform and then add some value in the exchange wallet. Then we will be able to buy or sell any digital asset we want with ease.

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There are many types of Cryptocurrency exchanges introduced in the crypto field. It solely depends on the products and services which are being offered by the exchange networks. We have to set our goals and choose the Cryptocurrency exchange according to the chosen preferences. Centralized and Decentralized Cryptocurrency exchanges are most popular used by the people. These are relatively new but it enables its customers to deal in freely. If one wants to deal in with day to day trading, then Traditional Cryptocurrency Exchanges are suitable for that. Brokers are also available through which dealing can be performed.
It depends on our choice which exchange we want to use for trading of digital assets. There are many factors which I observed to be pre-determined if we want to use an exchange for our use. We have to consider fees of the exchange, it’s reputation, verification requirements and regional regulations and restrictions etc.
Binance is currently most preferred and used crypto currency exchange platform in the digital market. Other exchanges are Gemini, Robinhood, Kraken, eToro and Coinbase etc.

What is difference between a Wallet and Exchange?

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Wallet	Exchange
Crypto Wallets are used to store the Cryptocurrencies	Exchanges are used to trade Cryptocurrencie
Digital assets can be stored in the wallets for very long time.	An Exchange can be used to convert fiat currency into any digital asset.
Wallet can be used to access the tokens at any time.	An Exchange can be used to send digital assets into personal wallets.
One can manage its own funds in the wallet	Own funds can be used to buy or sell digital assets.
Multiple assets can be handled easily	Assets can bring profit or loss depending upon the rates of the crypto currencies
Multiple keys for different private networks can be stored easily.	All account information can be handled easily
Connection to a bank account is necessary to use a specific wallet	An account is made and then log in to that account to use the exchange for trading
Coinbase, Gemini have software type walletLedger Nano posses hardware type of wallet	Binance, Kraken, eToro, Bitstamp etc are some popular Cryptocurrency exchanges.

Advantages of Decentralized Cryptocurrency Exchange (DEX)

Decentralized exchange enables a direct peer-to-peer connection between the two parties without any other involvement. There are many advantages of using the Decentralized Exchanges which are as follows:

• Customers can control their own funds.
• DEX can offer more security because there is no involvement of anything.
• There is not a risk of server downtime in DEX.
• DEX has lower transaction fees as compare to other exchanges in the market.
• Fair environment is maintained as anyone in the world can use it easily.
• DEX users did not need to send their information to any third party.
• Sushiswap, Uniswap and Curve finance are some popular DEX platforms.

Disadvantages of Decentralized Cryptocurrency Exchange (DEX)

• Option of fiat payments is not present in DEX.
  Account information and security keys need to be remembered all the time.
• DEX lacks the volatility which deals to a decrease in the work.
• DEX has no recovery of funds.
• There is no support team in DEX.
• Processing speed of the network is also limited in DEX.
• Stop losses, Margin trading and lending options are not available in DEX.

Advantages of Centralized Cryptocurrency Exchange (CEX)

In centralized exchange, there is involvement of a third party which ensures the contract between the two holding parties. There are certain major advantages of CEX which are as follows:

• Almost 99% of people used CEX because of its reliability.
• It is user friendly due to which it is relatively easy to invest in the digital assets.
• CEX provides an extra level of security in trading of funds.
• CEX offers its customers a consistently high liquidity.
• User experience is enhanced in CEX because of its high transaction speeds.
• A trustworthy investment environment is established.
• Applications and websites can be used to perform easy transactions.
• Binance, Kraken, Bithumb etc are some major CEX platforms.

Disadvantages of Centralized Cryptocurrency Exchange (CEX)

• We are not able to fully control our money.
• Hacking risk is always present in CEX.
• Insider trading is sometime performed by manipulating the accounts.
• CEX offers high transaction fees as compared to other exchanges.
• Sometimes, customers are not satisfied with the involvement of a third party as well.

My Experience of using an Exchange

As many active users in the world, I have also used Binance for my trading. It is the most widely used Centralized Exchange in the market right now. I preferred it over other exchanges because it is relatively easy to use and also user-friendly. It enables me to hold my assets in the wallet and can be liquefied easily. I can easily buy or sell any digital asset by placing my order and within a few minutes I can have it. The things I mostly liked about Binance are that almost any coin is available on this platform. Its web and mobile UI are easy to handle. Money transfer is also very easy. I also kept in mint its disadvantages as it is not suitable to use in case of larger funds. We can only use it for trading which is not a plus point of using it. Overall, I can say that it is very attractive and useful app for trading purposes. I totally recommend it to my friends and family members as well.

Conclusion

Cryptocurrency exchange is a platform of trading digital assets easily. There are many types of Cryptocurrency exchanges but mostly preferred one is the Centralized Cryptocurrency Exchange. It offers a lot of benefits as it is user-friendly. Decentralized and Centralized Cryptocurrency exchanges have their certain advantages and disadvantages based on their working and transaction amounts. DEX is relatively new in the market, so people use it less as compared with the CEX. In my opinion, most widely used exchange platform is Binance. I am also using it. It enables to enhance my interest in investing in the digital assets.
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