Author: Aleksandra Jovanovic

Aleksandra Jovanovic is Relationship Manager at Crypto Finance (Asset Management) AG. Prior to joining the firm, Aleksandra worked as commodity trader at Kolmar Group AG focusing on the origination and execution of international transactions and a variety of infrastructure projects. She has over 9 years of experience in international trade and business development, asset management, and relationship and sales management.

Generally, a distinction is made between centralised exchanges (CEX) and decentralised exchanges (DEX) such as Uniswap. This report outlines how the two types of exchanges differ from each other and how they work in the first place. Centralised crypto exchanges (CEXs) replicate traditional asset exchanges, maintaining a book of orders submitted by buyers and sellers. When orders are matched, the market price is determined and, in traditional markets, clearing and settlement houses ensure that transactions become effective. Generally, trades on crypto exchanges need to be prefunded which introduces complexity in managing fiat balances across exchanges, fragmenting market liquidity and reducing…

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