There are several ways to trade digital currencies

Digital currency transactions mainly include: Centralized exchanges: centralized platforms that provide supervision and security. Decentralized Exchange: An anonymous trading platform on the blockchain. Peer-to-peer trading: Transactions are conducted directly between buyers and sellers. OTC: A large transaction, usually involving institutional investors. Automated market maker: a decentralized trading protocol driven by smart contracts.

Digital currency transaction methods

There are mainly the following methods for digital currency transactions:

1. Centralized Exchange (CEX)

CEX is a centralized trading platform. Users deposit digital currency assets into the platform and then trade through the platform. CEX usually offers a variety of currency pairs to facilitate users to buy and sell different digital currencies. CEXs have regulatory and security advantages due to centralization, but transaction fees can be higher.

2. Decentralized Exchange (DEX)

DEX is a decentralized trading platform based on blockchain. Users transact directly on the blockchain without the need for a middleman. DEXs offer anonymity, but may not have as much trading depth and liquidity as CEXs.

3. Peer-to-Peer Transaction (P2P)

P2P transaction is a transaction conducted directly between buyers and sellers. The two parties negotiate the transaction details through chat or other methods, and then complete the transaction on a third-party platform or wallet. P2P transactions generally require more trust but have lower transaction fees.

4. Over-the-counter (OTC)

OTC trading is a large-scale digital currency transaction that usually involves institutional investors or holders. This type of trading is usually conducted with the assistance of a specific platform or broker. OTC transaction fees are higher, but they can meet the needs of large transactions.

5. Automatic Market Maker (AMM)

AMM is a decentralized trading protocol based on smart contracts. It provides liquidity and allows users to trade without any order book. AMMs generally have lower trading fees, but liquidity can vary depending on the trading pair.

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