What is an exchange? And the types of exchanges?

An exchange is a digital marketplace where you can buy, sell, and trade cryptocurrencies or digital rewards.

There are three main types of exchanges recognized:

1. Centralized Exchange (CEX)

   • The CEX is typically managed by one entity.

   • They function similar to a bank or a financial institution.

   • While CEX tend to be easy to use because of the centralization they may be more vulnerable to hacks, have little privacy for the user and may include higher transaction fees.

2. Decentralized Exchange (DEX)
   • A decentralized exchange is not managed by any particular entity or individual. Instead, trades are automated and executed via smart contracts on the blockchain.
   • May require more advanced skills and knowledge to utilize, may be difficult or easy to use, depending on the interface.
     
     
3. Hybrid Exchange (HEX)
   • Hybrid exchanges seek to combine features of CEX and DEX for the HEX platform.