Centralized vs Decentralized vs Hybrid Exchange

Build robust crypto trading platforms for both centralized (CEX) and decentralized (DEX) operations. Enable secure, fast, and seamless transactions across multiple cryptocurrencies with advanced trading features.

Centralized Exchange (CEX)

Decentralized Exchange (DEX)

High Liquidity

Enhanced Security

Centralized Exchange

• CMS Management
• User Management
• User and Admin Funds Management
• User and Admin Wallet Management
• Admin Dashboard Management
• Trade Management
• Trade Fee Management
• User’s KYC Data Management
• User’s Credentials Management
• Provide wallets to users (own wallet system or wallet provider API)
• Multiple Liquidity Management
• Real-time Crypto Price Management through APIs
• Profit and Loss Calculations Management
• Newsletters can be customized from the Centralized Admin Panel

The Centralized Exchange is managed by the Administrator where the centralized Admin have full control of the platform right from user verification till the trades, buy orders and sell orders are getting matched and settle the Exchange orders. The Master Admin can create sub Admin’s in the platform for every department of the Crypto Exchange. We can provide a provision to the sub Admin’s to handle every single part of the Crypto Exchange.

Admin will confirm the withdrawal when user withdraw their funds. KYC will be verified by the Admin manually or automatically through Automatic KYC verifier’s API. Admin can add liquidity to the platform. They can add the popular crypto exchange’s liquidity and bring in the order books of those platform into his own crypto exchange. Even Admin can add multiple liquidities in the platform.

The master admin can control all the management operations by themselves and take responsibility of funds, users, liquidities, KYC documents, PNL calculations, Enable or Disabling users and more options can be provided in the centralized crypto exchange platform developed by AI CODERS CHAIN Team. We can provide easy Admin management and whitelist the Admin panel and more security measures will be taken for the centralized crypto exchange development.

This is different from the centralized crypto exchange where there is no single entity who controls the user funds. Instead, users can connect their wallet to the platform directly. We provide connect wallet options, so that users have their control of their own wallet and users themselves can manage their wallets. This is one of the key feature in Decentralized exchange most of the users like and use Decentralized exchange platform.

A decentralized exchange (DEX) using smart contracts to enable crypto traders to execute trades without an intermediary. Many users prefer decentralized exchanges due to their enhanced privacy. For an instance, traders on a Decentralized exchnage don't need to share any personal information in the platform. They maintain control of their private keys (an encryption tool) and their cryptocurrency funds.

Decentralized exchanges transfers control and responsibility to the users. DEXs are non-custodial letting the parties trade directly from their wallets through smart contracts. With the DEX feature, users are responsible for their funds and passphrases. DEXs typically form a distributed governance structure

In the Centralized system trade happens user to user. In decentralized exchange the trade executes by the smart contracts, where trade happens users to smart contracts.

An automated market maker (AMM) that uses smart contract technology to fill the orders and track the price of digital assets. Instead of using a matching engine to match the buyers and sellers, AMMs use community-funded liquidity pools to execute buy and sell orders.

With the numerous automated market makers using their own liquidity pools, The asset’s price is rarely the same on every DEX exchange. Arbitrageurs attempt to buy assets from DEX exchanges with lower prices and sell the tokens into liquidity pools with higher prices, averaging the price between the two pools.

Order Book Exchange - Order books likely share the similar operating method with centralized exchanges. These exchanges enable traders to place their buy orders at the price they willing to pay for a digital asset and sell orders at the price they willing to sell the asset. The order book compiles these order offers and matches buyers and sellers to fill trades.

But it all happens based on the order books no centralized authorities will get involved in the order execution. On-chain order books allow traders to buy and sell digital assets without taking the custody of their tokens. In few many cases, traders can leverage their trades to increase their profit potential, although this also increases their loss potential.

DEX aggregators are often compred to a decentralized exchange works like a search engine, as they aggregate with decentralized exchanges, eradicating the need to manually find the best price for a token across DEXs. These platforms use different protocols to aggregate liquidity from multiple DEXs, enabling to minimize slippage on large orders, lower trading fees, and offer optimal token prices to make sure the orders are executed successfully.

Hybrid Crypto Exchange - A hybrid crypto exchange that bundles the speed of centralized exchanges (CEXs) along with the security of decentralized exchanges (DEXs) by using an off-chain order book for fast order matching and an on-chain processing for doing the secure settlement, It gives Traders, users high liquidity, trade execution in a quick speed, and control over their private keys, often via users integrated hot/cold wallets or smart contracts.

This Hybrid model crypto exchange aims to leverage the strengths of both systems to provide a more secure, efficient, and user-friendly crypto trading experience. Centralized exchanges are known for their speed, peer to peer and easy usage, while decentralized exchanges are praised for their enhanced security, users control on their wallets, no middle man and privacy. By combining these two characteristics, hybrid exchanges offers a balanced solution that brings you the usage of each model.

In this type of crypto exchange you will have a login, register option and also the connect wallet option to connect with the platform directly. It uses a centralized server to handle order matching engine match and trade execution but stores users' funds in a decentralized way, often through the usage of blockchain technology and smart contracts. This setup helps to mitigate few risks associated with fully centralized exchanges, such as hacking and wrong management, But still providing the performance benefits of centralized platforms.