The ever-increasing number of cryptocurrencies deems crypto exchange software to be highly sought out now more than ever. They are platforms that facilitate exchanges of cryptos with fiat or themselves. In this article, we shall go over the kinds of exchange software available in the market and their purpose briefly.
Types of Crypto Exchange software available.
Not all crypto exchanges are the same. They operate differently based on multiple factors that overall determine the services they offer. Crypto exchanges facilitate exchanges of cryptocurrencies with other cryptocurrencies. These platforms allow traders to sell their cryptocurrencies for a price and acquire other cryptos of similar value. Eg. trading a Bitcoin for an Ethereum. Fiat exchanges allow traders to exchange their real-world currencies such as US Dollars and Pounds to buy cryptocurrencies such as Bitcoin and Ethereum.
Let us go over some of the different types,
Centralized crypto exchanges are the conventional platforms that facilitate the exchange of cryptos for one another. They are primarily governed by a single group of authority. Undertaking sole responsibility, they oversee the transactions, regulate and improve the platform.
Decentralized crypto exchanges are governed by multiple nodes in the networks they operate on. Advocating a publicly distributed ledger system to track all the exchange transactions, they offer transparency with every record. The records made are immutable. Decentralized exchanges promote shared responsibility among the users of the platform.
P2P crypto exchange platforms are primarily focused on enabling direct exchange trades. They operate on peer-to-peer networks, eliminating any intermediaries between the buys and sellers.
Thus ensuring a decentralized approach to crypto exchanges.
White label crypto exchanges are enterprise built, over the counter, ready-made exchange platforms that can be deployed. They are products developed by organizations that can be bought and re-branded with ease.
Each cryptocurrency exchange platform serves a purpose in its own unique way. Based on their functionality, they offer advantages and features to the customer requirements.