To meet up with the global revolution presented through the emergence of the cryptocurrency, a cryptocurrency exchange platform is necessary.
An exchange is a platform where users can easily exchange their digital assets to fiats or trade them to other digital assets and carry out other financial services. Whichever one, an exchange plays a vital role in the cryptocurrency industry as is considered as an inestimable part of the system.
A lot of exchange platforms have been developed right from the creation of the first cryptocurrency, all to ensure that users get the best, since it is on this platform that the exchange of digital assets takes place.
There are two major types of exchanges that have been in use in the cryptocurrency industry, which are the centralized and decentralized exchanges, and they have their parts to play in the efficient trade or exchange of digital currencies while providing CeFi and DeFi services respectively.
UNIQUENESS OF DeFi AND CeFi SERVICES
Both financial services are unique in their own way as they both provide financial services using different solutions and protocols.
DeFi uniqueness are,
Decentralized cryptocurrency exchanges are as well important to the financial system, as its decentralized structure is made to ensure that the users of the exchange are given full control over their funds or assets on the system.
This way, they decide what happens to their fund and how it is being spent, letting them take charge of their trading activities
TOTAL SECURITY OF THE SYSTEM
As a result of its decentralization, the decentralized exchange platforms are completely secured and are far beyond the reach of hackers.
Its improved security system and the fact that the system is not in control of the funds, rather the users are allowed to secure their assets using the private key, making it increasingly difficult for hackers to gain access to the user’s funds.
LOW LISTING BARRIERS
Listing of different digital currencies is not very difficult on the DeFi system, and so it facilitates the creation of new cryptocurrencies and their entrants into the crypto market.
For centralized financial systems on the other hand, let's take OKEx exchange for instance, it's benefits to the financial system are innumerable, some of which are…
CRYPTO TO FIAT CONVERSION
Most of the exchanges which have an option for users to easily exchange their cryptocurrencies to fiat are centralized, such as OKEx.
Through the support for fiat, users do not have to pass through any form of complication, before they can exchange their crypto to fiat or vice versa.
More users get to enter the system crypto space as it has been simplified.
GREAT PROCESSING SPEED
Centralized exchanges on the other hand, like OKEx possess increased transaction speed, which ensures that every operation is carried out in a little or no time.
This feature of the OKEx exchange is exactly what is needed by every cryptocurrency trader, as it makes it that they do not have to wait too long for their transactions to be executed.
The increased transaction speed gives users a wonderful trading experience as trades take place in a shorter time than normal, no matter the complexity.
Trading cryptocurrencies on OKEx has countless perks and high trading liquidity is one of them.
It provides a great ease for digital assets to be traded, without a significant influence on the price.
So the price of cryptocurrencies does not fall upon the trade of a large volume of cryptocurrencies on it, due to its high liquidity.
HIGH EXCHANGE VOLUME
This is another great contribution of the OKEx exchange to the cryptocurrency industry and the financial system at large.
Due to its design, the OKEx exchanges tend to have more trading volume, which allows traders to seamlessly trade and exchange their crypto coins resulting in more liquidity.
Looking at the few benefits of CeFi and Defi in the financial system, one will know that these two are important to not just the cryptocurrency industry, but to the global financial sector and the world at large.
The cryptocurrency industry definitely needs the good sides of both types of financial systems to function effectively and give users unlimited benefits while trading their digital currencies.
CeFi and DeFi are indeed better together, since they have great and intriguing features which together, could elevate the cryptocurrency industry.
Now the cryptocurrency traders and other players in the cryptocurrency industry get to enjoy a great trading experience characterized by great profits.