A centralized exchange platform works depending upon a central authority to control and hold the user's funds and execute transactions. Here, the users have to put their trust on the third party that their funds will be safe. Although a centralized exchange brings in numerous benefits such as enhanced functionality, liquidity, and speed in transactions, there is a minor pitfall that if a centralized server is hacked, the hacker could efficiently access all the information of the platform. This is why they have been more prone to hack threats in the past.
Likewise, when it comes to a decentralized exchange, there is no centralized server and the private keys are stored in the user’s server itself. Therefore, they ensure more safety and security for the funds. But again, some users might feel these platforms are not user-friendly as there is no central authority to organize and manage their funds and the activities of the platform. And users tend to forget their passwords, and it becomes almost impossible to recover their accounts.
To prevail over these minute setbacks of both CEX, and DEX, while having the best of both is what a Hybrid crypto exchange software is composed of. You can ensure your privacy and safeguard your private keys, while also enabling faster transactions, speed, liquidity efficiently in a hybrid environment. As it combines the best of both, it brings in maximum benefits for the users and thereby, a perfect choice to set about your venture.