The precise differences between traditional exchanges and cryptocurrency exchanges
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;
- A traditional exchange only carries out swaps between securities but doesn't touch custody
- On the other hand, cryptocurrency exchanges perform several services in one including transferring digital assets and storing funds in a digital wallet
- Crypto exchanges use an order-matching engine to match buyers and sellers, verify accounts and finally process transactions.
- 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.
- While traditional financial exchanges rely on massive data centers in physical locations, most crypto exchanges rely on cloud services—more specifically, Amazon Web Services.