A centralized exchange (CEX) acts as an intermediate platform, enabling cryptocurrency transactions between buyers and sellers. Here is a simple outline of its working process:
User Registration and Verification: Users create accounts on the CEX platform, which frequently requires Know Your Customer (KYC) authentication to ensure compliance with regulations.
Depositing Funds: Users deposit cryptocurrency or fiat currency into their exchange wallets. These funds are held in custody by the exchange.
Order Placement: Users place buy or sell orders, specifying the chosen cryptocurrency, quantity, and price.
Order Matching: The exchange's trading engine matches buy and sell orders based on price and quantity.
Trade Execution: When a match is identified, the exchange completes the transaction, transferring the agreed-upon cryptocurrency between the buyer and seller.
Fee Collection: The exchange charges a fee for facilitating the trade, which is deducted from the involved parties.
Withdrawal: Users can transfer cryptocurrencies or fiat currencies from their exchange wallets to their personal wallets.
Developing a robust and secure centralized exchange requires expertise in various domains, including blockchain technology, trading engine development, security protocols, and regulatory compliance. A
like MetaDiac specializes in building these CEXs platforms, providing comprehensive solutions for businesses entering the cryptocurrency market.
