An Exchange platform is highly needed for a trader, for it is the medium through which traders around the globe carry out their exchanges effortlessly. Cryptocurrency exchanges are the main base for Blockchain technology development.
Types of Exchanges has been introduced after the success of Bitcoin launch. As the Bitcoin trading started to grow continuously, the exchange Platforms also started to evolve for the ease of traders such as Centralized mode of exchange, Decentralized exchanges and finally the development of Hybrid exchange platform.
Before discussing the Hybrid exchange, let’s get clarified about the Centralized and Decentralized exchanges.
Centralized Exchange Platform
Centralized exchange platform acted as the backbone for the exchange of cryptocurrency once it was introduced. As the name says, the Centralized exchange platform will be owned by a central authority where the traders will able to exchange fiat to cryptocurrencies or vice-versa and also cryptocurrency to other Cryptocurrencies. This form of Cryptocurrency exchange is like the conventional Stock market exchange and is easy for the crypto beginners. Mostly people go for the Centralized exchange platform to make an exchange as it has vantages to the traders such as stop loss and margin trading. Like its been said everything has its own advantage as well as disadvantage.
With increasing Cryptocurrency trading volume it became really hard to find a secured exchange platform. The main limitations in Centralized exchange platform security and privacy, sometimes higher transaction fees, and off chain transactions (No involvement of Blockchain technology). Apart from these limitations, they have the user-friendly interface and all the technicalities involved in the usage of Centralized exchange platform are manageable.
When a transaction is been carried out the individual has to deposit their funds into the admin wallet where all the cryptocurrency deposition takes place for the exchange to get completed. Since a centralized server is involved, this may create a possibility for the unexpected hacking to drain the funds in the pooled wallet. The issue of privacy is about the non- anonymity of the users. The complete procedures involved in the user registration makes the user fear about their identity exposure. The centralized exchange platforms can also be easily shut down by the government since most CEX are licensed, regulated and are run by Government Institutions.
To prevent all these issues introduction of Decentralized exchange platform began with the help of Blockchain technology.
Decentralized Exchange Platform
Decentralized exchange does not have any central authority or we can say that an intermediate entity will be absent to carry out the trading. Here the Platform does not hold the funds of the customers, their information and serve only for routing and matching trade orders. The engagement of Blockchain technology was welcoming in DEX.
Even though the Decentralized Exchange Script is advantageous based on the security and user anonymity part, it had its flaws compared to the Centralized Exchange Platform.
- Low trade Volume
- Limited Functionality
- Low Liquidity
- Non availability of Payment option with Fiat currencies
- Lacks simple user interface as that of Centralized exchanges
- Does not engage at a specific formal location and there will be no insure
- No additional services such as Wallet, Banking, debit cards for Cryptocurrencies.
Because of these features, the reach out of DEX among traders is less. Many preferred Centralized over Decentralized as it has added features compared to DEX. To overcome these flaws the Hybrid exchange platform was created.
The establishment of a Hybrid exchange platform is the best example of this world where people started to prefer tailor-made things over the conventional ones for their convenience.
Hybrid Exchange Platform
The Hybrid Exchange Platform the combo of both Centralized and Decentralized Exchange Platforms. An Exchange platform supporting Centralized features and also has provision for the trading through DEX is referred as Hybrid Exchange Platform.
The hybrid exchange platform will help to minimize the limitations present in the CEX and DEX. The usage of Hybrid exchange is completely based on the user’s interest.
Hybrid Cryptocurrency Exchange
After DEX the Hybrid exchange platform has a larger scope because of its advantages. We Pulsehyip, a Bitcoin and Cryptocurrency exchange script provider with updated knowledge about cryptocurrency industry will provide you the ready-made script for the development of Hybrid exchange script with additional tailored features which will help you to launch your Hybrid Exchange Platform. Get a free demo along with the project proposal from our top technicians to know our expertise.
#Hybridexchangescript #Hybridcryptocurrencyexchangeplatformdevelopment #hybridcryptocurrencyexchangedevelopment #Hybridexchangedevelopmentcompany #besthybridcryptocurrencyexchangedevelopment