To get a share of the juicy pie, a crypto trader must first choose a platform for work. Like any other financial instrument, cryptocurrency is listed on exchanges. There are over 400 sites in the Global Network. Unlike traditional Wall Street exchanges, crypto exchanges are divided into two types: centralized and decentralized. Both of them work on blockchain technology. To work on a centralized platform, you need to create an account and make a deposit. Decentralized exchanges do not store any user information on servers.

 

Most decentralized exchanges are less convenient, and when it comes to speed, centralized platforms outperform their decentralized counterparts. Despite emerging trends to reverse this issue, the situation still remains in favor of centralized exchanges.

 

Centralized exchanges also outperform decentralized ones in another important factor vital to trading: liquidity. Decentralized exchanges cannot compete with centralized exchanges in terms of trading volume. However, decentralized exchanges benefit from almost no fees and higher security.

 

Traders also need to know how crypto trading bots work, they are allowed on crypto exchanges and make trading much easier. When referring to bots, it is important to first analyze the available exchanges and understand which ones offer the best tools for convenient trading.

 

When choosing a cryptocurrency exchange for trading, users should first analyze all the features of the exchanges. Experienced traders prefer more sophisticated platforms that offer more functionality, while novice traders want to hone their skills on less complex services.