The precise differences between traditional exchanges and cryptocurrency exchanges

edited January 5 in General

Traditional exchanges and cryptocurrency exchanges; what are the key pertinent issues that bring out the difference between these two?
Here are a few that Leslie Ankney, a contributor on Forbes recently pointed out;

  1. A traditional exchange only carries out swaps between securities but doesn't touch custody
  2. On the other hand, cryptocurrency exchanges perform several services in one including transferring digital assets and storing funds in a digital wallet
  3. Crypto exchanges use an order-matching engine to match buyers and sellers, verify accounts and finally process transactions.
  4. Traditional exchanges basically perform one service, carrying out trades through an order-matching engine. They don’t hold funds or perform the role of a broker.
  5. While traditional financial exchanges rely on massive data centers in physical locations, most crypto exchanges rely on cloud services—more specifically, Amazon Web Services.

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