Cryptocurrency Exchange; What does it mean?

According to “Webster’s 1828 Dictionary”, an exchange is an exchange of one thing for another, trading things of comparable worth or value.

For example, a typical currency exchange would trade things such as United States dollars for, perhaps, Canadian dollars or Japanese yen.

A Cryptocurrency Exchange is a platform or system that operates based on trading cryptocurrencies for other assets. Like traditional financial exchanges, cryptocurrency exchange’s principal operation allows for the buying and selling of digital assets and different levels of trading.

A DCE, or digital currency exchange, is what a cryptocurrency exchange platform is called.

There are five types of DCE’s.

Decentralized: All currency held by owners; Operations are taken care of on the blockchain.

Centralized: Very easy to use, and there is more liquidity.

Broker: A centralized exchange that adheres to local regulations.

Instant: An application for token exchange quickly.

Hybrid: A mix of security and ease of the centralized.

You can assume that since a Hybrid is listed as a DCE, it also follows that other combinations to compete are also out there. It is usually a centralized on-premises server. There are also hybrid cloud servers.

So what are the fundamental differences between traditional currency exchanges and cryptocurrency exchanges? First of all, Cryptocurrencies are unstable at this point. Bitcoin, as an example, has changed dramatically in a short time due to disruptive events. Also, many exchange platforms have gone under due to fraud, theft, or other problems. The volatility of cryptocurrencies makes them so profitable and risky. However, many things about the traditional exchanges and cryptocurrency exchanges are similar such as; a buyer and seller can make limit orders or market orders. The brokering of cryptocurrency works just like it would for any other kind of asset.

Protections from fraud, theft, and other possible problems are built into cryptocurrency exchanges for user security. While these exchanges are the key to liquid use of cryptocurrency assets

In the traditional currency exchanges, the overall risk is regulated, to a high degree, but not completely. In cryptocurrency, you are on the front lines of the exchange. In the traditional currencies, you may be several go-betweens away from the actual exchange front lines and thus giving a portion of your profits away as unnecessary fees several levels. So both types of exchanges will charge fees, but it is a historical fact of old-aged tradition that the farther you are from the front lines, the more you lose to those collecting their part.

Learning to work on and with decentralized exchanges is the best and far most profitable financial move anyone could ever make. With a decentralized exchange, you own your asset.

This is why Compumatrix is decentralized, and Bitshares follows as a Decentralized Exchange. It is our company, our business, and our family and no one else’s. Thus, we decide what is best!

All of those who are a part of Compumatrix, should be proud of what has been accomplished, and realize that there is no other company in existence that has what we have! Now, I expect many will try to copy our example, and we should see this as flattery.

About the author

Sam and Jody live in Mena Arkansas and love Compumatrix. Life is simpler when sharing life with others, and being a Christian I see how being there with and for others enhances their lives. How can Compumatrix make your life better?


  1. Great post Sam. One critical difference between a decentralized and centralized exchange is where the assets are held. I love decentralized because each members assets are held in their own accounts. Adds to the security of the exchange because a Hacker doesn’t want to break into 10,000 accounts to get all the coins there, where in a centralized exchange there is just a big pile of coins in one wallet, with an accounting system to determine how many each member has.

    Compumatrix RULES on this aspect alone, never mind all the other benefits we have here. 🙂

  2. Thank you, Sam, for more cryptocurrency information for my file! Even myself, though a non-
    trader can see the huge benefits of decentralized exchanges. Love the idea that this is my business and NOT the banks as the banks can rate sometimes not so high on the trustworthy scale! And, even more riskier during these times.

  3. just a great read thoroughly — through n through a couple times — and it is nice to see more people here realizing that Compumatrix is an actual hands-on type business not just a dream perse’ — and with each week and new information being disclosed — it is almost that wow moment now — that so many of us have held fast for and too — great read Sam —

  4. I second or third that, an excellent read. Being master of ones own destiny is very important to me and Compumatrix, along with the decentralised system that it works alongside, gives me just that! I am looking forward to following my path at the same time as helping our company grow and enable others to take control of their futures!!!

  5. Thank you Sam, great information about cryptocurrencies exchange, compumatrix is a very huge decentralized platform in future,where we can make different crypto trade for financially stable,compumatrix is a very unique cryptocurrencies business in world,I am very proud to be a part of compumatrix decentralized business.

  6. Nice blog, Sam. Any information that makes all of the cryptocurrency jargon more understandable is welcome. I am happy that Compumatrix and bitshares are decentralized so that we are able to control our assets instead of someone else doing it, and losing much of those assets in fees through middle men.

  7. Greatly written information piece. Real nice break down on the functions and differences co the Exchanges. This will be a great source to come back to or send someone else too for a better understanding of how the exchanges differ. Looking forward to seeing more topic’s blogged by you.

  8. Thank you Sam….again this emphasizes why Compumatrix is ahead of the game, having moved to a decentralized exchange gives us extra security in this unpredictable world. Even though we take responsibility for our own security and protection, this shows us that the company is also watching out for all of the members.

  9. Very well explained Sam about the Crypto Currency Exchange,and mainly the decentralized exchange where we have full control of our money.Just like in our Compumatrix. And unlike the centralized exchanges e.g. Banks etc,where our money is not in our control but in hands of the exchanges.

  10. After reading Sam’s comments that gives us more incentive to actively promote Compumatrix across the world. People are disenchanted with banks not only because they pull the strings when it comes to our money but their attitude in dealing with customers leaves a lot to be desired. Customer service has gone out the window. The reverse is the truth for our company which actively cares for us and our success.

  11. Thank you Sam for a very decent explanation of the centralized and decentralized exchanges and our own Compumatrix happens to be the Decentralized,this will cut down various fees that the Banks levy on our transactions at various levels on which we have no control whatsoever.this will all change when we use the Decentralized Exchanges for conducting our Compumarix business.

  12. Thank you, Sam. I love all the learning blogs. This is another excellent blog for the newbies that will serve well. I love decentralized because you have control. They are blowing up the dollar by overprinting for years now. Having a cryptocurrency wallet and learning anything in this realm will be significant in the future and now. I have friends who still won’t give in, but when you read it the way you and others have laid it out, it’s not that hard to understand.

  13. It will be very interesting to see where crypto goes after the Chinese announcement
    caused a huge drop in the value. Will the exchanges still be able to operate? Will companies whose valuations are based on Bitcoin value still be attractive for members and investers.
    I guess it is a question of watch this space

  14. I see bitcoin and other crypto currencies are under attack from many traditional sourcesn
    because of moneylaundering potential.
    It will be interstingto see how the exchangers react to try to keep values up and restore confidence

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