What are the differences between cryptocurrency exchanges?

What are the differences between cryptocurrency exchanges?

There are two main types of cryptocurrency exchanges: centralized and decentralized. Centralized exchanges are managed by a company and offer higher liquidity, while decentralized exchanges allow peer-to-peer trading without a central authority.

Can you give me examples of each type?

Sure! Examples of centralized exchanges include Coinbase and Binance. For decentralized exchanges, you can look at Uniswap and SushiSwap.

Which type is safer for beginners?

Centralized exchanges are generally considered safer for beginners due to their user-friendly interfaces and customer support. However, they require trust in the platform.

What about fees? Are they different?

Yes, fees can vary significantly. Centralized exchanges often charge trading fees and withdrawal fees, while decentralized exchanges may have lower fees but can include gas fees for transactions.