XE Exchange: Understanding the types of cryptocurrency exchanges

Being well-aware of the increasing popularity of cryptocurrency, and how people are making money by investing in these digital currencies, you may have decided to jump on the cryptocurrency bandwagon, and you may be seeking a reliable XE exchange for crypto trading. Exchanges help you to enter the cryptocurrency market, but not all exchange platforms provide the same services. There are different types of exchanges, and it is important to know how each is different from others.

XE exchange


 Centralized exchange
A centralized exchange is an intermediary like a company that serves as a middleman to simplify trading on its platform. This type of XE exchange charges a certain amount of trading fee. A centralized exchange acts as the first point of contact for cryptocurrency beginners, who are investing in digital currency for the first time.

Many potential investors look for a platform that can connect them to cryptocurrency trading and real economy, and a centralized exchange is designed to provide that.

Pros of a centralized exchange include:
  • Advanced features and tools
  • High liquidity
  • Easy to use
  • Faster transaction speed

Decentralized exchange
A decentralized exchange is the one that does not require any intermediary to carry out its operations. Unlike a centralized exchange, where buy and sell orders in an order book are matched, a decentralized exchange matches the people behind buy and sell orders.

As there is no intermediary, decentralized exchanges usually do not charge any trading fee. Furthermore, this type of XE exchange is more private. While a centralized exchange asks for your personal information and identity proof, a decentralized exchange does not require any proof of identity, except that you need to disclose your identity to the individual that you are trading with.

Decentralized exchanges do not hold users’ cryptocurrency, instead a direct connection is created between the users.

Pros of a decentralized exchange include:
  • User anonymity
  • No trading fees
  • Users have a complete control over their funds
  • No need for personal documents to initiate trading

Peer-to-peer exchange
A peer-to-peer exchange matches cryptocurrency buyers with sellers. These include individuals trading back and forth with other individuals. The sellers set their own price and decide upon the types of payments that they will accept.

Many peer-to-peer exchanges accept PayPal, credit cards, cold cash, hard cash and bank transfers. These exchanges match people interested in cryptocurrency trading and charge a small fee for matchmaking.

The features of a peer-to-peer exchange include:
  • It is centralized or decentralized in nature
  • It lists adverts of prospective cryptocurrency sellers and their terms
  • It uses an escrow account or smart contracts to ensure that the traders are honest
  • Buyers find sellers with a favorable payment method

Security measures when using an exchange
Whether you use a peer-to-peer exchange or a Cryptocoin exchange, it is not recommended to store a large amount of digital currency on an exchange. To keep your cryptocurrency safe, it is better to store it in a hot wallet or a cold wallet.

Buying cryptocurrency needs caution and adequate research to ensure that you choose the right exchange platform for trading. Each cryptocurrency exchange has its own policies and terms of use, so go through the same thoroughly to make sure that the exchange you are choosing for trading meets your needs. Also, consider the security aspect to ascertain trading through a secure exchange platform.


If you are planning to invest in cryptocurrency and looking for a reliable, XE exchange for trading, ZedXe is the right platform for you. Designed to be the most secure, simple and interactive exchange ensuring the fastest withdrawals, ZedXe allows you to get complete control over your transactions and revolutionizes the way you trade cryptocurrency. 
Location: Parda 4, 10151 Tallinn, Estonia

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