Digital currency exchanges provide traders and investors the opportunity of trading digital currencies. Cryptocurrency exchanges come in various types, each with its own unique features and advantages. In this section, we introduce different types of digital currency exchanges.
Centralized digital currency exchanges, also known as CEXs, are similar to traditional stock exchanges. In this type of exchanges, the exchange acts as an intermediary, allowing traders to easily trade their desired cryptocurrencies. The most important feature of centralized exchanges is their reliability, which enables traders to comfortably use these exchanges for capital management and preservation. However, these exchanges also have disadvantages, with the primary one being vulnerability to hacking.
Decentralized exchanges, or DEXs, are another type of digital currency exchange that has gained significant popularity in recent years. These exchanges aim to facilitate peer-to-peer transactions, meaning buyers and sellers come together and directly trade with each other. Essentially, decentralized exchanges do not require any intermediaries for managing and preserving your capital.
Rabi Exchange is a new exchange that categorizes two types of exchanges into a new category. Rabbi Exchange means trading in the future.