Cryptocurrency exchanges have come a long way since the early days of crypto trading. Nowadays, there are two main types of exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX).
While both types of exchanges serve the same purpose of facilitating the trading of cryptocurrencies, they differ greatly in terms of their fees, structure, security, and user experience. Some centralized exchanges also created their own NFT marketplaces so traders can trade both non-fungible tokens along with crypto (e.g. Coinbase or Binance).
The history of crypto exchanges
In the early stages of the crypto space, there was only Bitcoin, with very few people to trade it. The initial transactions in 2009 were conducted strictly for testing purposes, with no established market value. Satoshi Nakamoto and Hal Finney completed the first known transaction on January 12th, 2009.
Although bitcoins had no value back in 2009, a service called the New Liberty Standard was launched to facilitate the purchase and sale of bitcoins at a rate of 1,309 BTC per $1. On October 12th, 2009, the first transaction of this kind was recorded when New Liberty Standard purchased 5,050 BTC from Sirius using PayPal for a total of $ 5.02.