A newly released report by the World Federation of Exchanges (WFE) sheds light on the current composition of crypto trading platforms, highlighting that 40% are decentralized.

Notably, the findings from the report mainly reveal a glimpse into the dynamics between centralized and decentralized trading platforms and the overarching behavior of retail and institutional investors.

Centralized Vs. Decentralized: The Current State Of Crypto Trading Platforms

The WFE report underscores a pertinent challenge: the disparity in investor protection awareness among retail investors.

Out of the plethora of platforms available, the WFE identified that 60% of these platforms utilize Central Limit Order Books (CLOBs), resembling traditional regulated exchange platforms.

This suggests that even in digital currency trading, many platforms lean towards traditional mechanisms, pointing towards a preference for familiar trading architectures.

Despite the potential benefits distributed ledger technology offers, many platforms chose to operate off-chain for vital operations such as price oracles, order execution, and quote display.

The primary utilization of blockchain appears to be for settlement and custody, allowing traders to sidestep interaction with distributed ledger technology and subsequently reduce transaction costs. Such platforms, which utilize the blockchain primarily for compensation, fall under centralized exchanges (CEX).

Retail Vs. Insti
Go to Source to See Full Article
Author: Samuel Edyme

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details