From $20,500

CEX and DEX copy trading

Centralized exchanges

In the case of cryptocurrency exchanges, centralization means that bidders entrust their capital to a third party. Previously, all companies and institutions operating in the financial sector were considered centralized. As a result, they acted as an intermediary whose services they used when working with various types of assets. For example, customers transfer their money to the bank. He, in turn, gains control over them.

This approach, in many situations, is safer than storing and managing money on your own. Banking structures pay great attention to reliability issues. They have a whole staff of employees who specialize in security issues. In addition, banks provide customers with other services. Since they have large amounts of funds and have a trusting relationship with customers, they can engage in lending.

Centralized crypto exchanges are similar to banks. Clients trust them with their money. Moreover, such a trading platform has the right to dispose of them. The presence of a trusted intermediary simplifies the work and helps to quickly restore access to your profile if the password has been lost.

This approach removes the responsibility from the user for the storage of money. Indeed, many have heard stories about how investors lost their funds due to losing a key to a hardware wallet. If their assets were on a centralized crypto exchange, this situation would not have happened. In this case, the solution to the problem is simple. First, it would be necessary to contact the centralized crypto exchange support service and provide them with the required documents to establish their identity. The user would then receive a new password.

Decentralized exchanges

Cryptographic coins and blockchains represent decentralization. Thanks to this, it is possible to carry out the decentralization of trading platforms.
Simply put, a decentralized exchange (DEX) eliminates the need for an intermediary. Because it is an efficient ecosystem. Transactions are executed through smart contracts and atomic swaps. E-currency remains safe.

DEX Types:
  • Order Book Based-DEXs;
  • Liquidity Pool Based-DEXs (AMM - An automated market maker);
Types of DEX AMMs:
  • Constant Product Market Makers;
  • Constant Sum Market Maker;
  • Constant Mean Market Maker;
  • Stableswap Invariant.
Additional DEX functionality:
  • Yield Farming;
  • Liquidity Mining;
  • Airdrops;
  • Initial DEX Offerings features;
  • Liquidity Bootstrapping Pool (LBP);
  • Initial Farm Offering (IFO).

Copy trading

Copy trading is a particular investment involving copying all trades that a professional trader performs. This type of investment is great for beginners who do not yet understand the market and have not developed their strategy. However, more experienced traders may prefer copy trading to save time on in-depth market analysis.