How do I choose a centralized cryptocurrency exchange?

Some considerations when deciding on which centralized exchange to use include: supported assets, regions supported, proof of reserves, and trading volume. Cryptocurrency exchanges are an online version of a marketplace, and can be either centralized or decentralized.

How centralized exchanges facilitate cryptocurrency trading?

Typically, users are granted permission to fund their accounts and commence trading once these steps are fulfilled. That being said, centralized exchanges rely heavily on order book matching technology to facilitate cryptocurrency trading. The order book systems help to identify matches between buyer and seller orders to facilitate trades.

What is the difference between a centralized and a decentralized crypto exchange?

A centralized crypto exchange resembles a bank, where the institution is the custodian of all digital assets deposited on the exchange and matches buyers and sellers on its platform, while a decentralized exchange cuts out the intermediary, using on-chain smart contracts to run its exchange services.