Crypto Exchanges offers a deep dive into the world of digital asset marketplaces, crucial for anyone navigating the evolving landscape of digital finance. The book tackles the fundamental operations of centralized exchanges (CEXs) and decentralized exchanges (DEXs), including their architecture and order matching mechanisms. One intriguing aspect explored is how these exchanges have evolved from their inception to today's sophisticated platforms offering complex financial instruments. A core focus is the challenge of liquidity fragmentation across exchanges, examining its causes and consequences. Furthermore, the book evaluates the risks inherent in both CEXs, such as security breaches, and DEXs, like smart contract exploits. Using trading volume data, blockchain analytics, and regulatory reports, the book provides a balanced perspective on the benefits and drawbacks of crypto exchanges. The book progresses by first introducing fundamental concepts, then focuses on liquidity, and subsequently evaluates inherent risks. Concluding with potential future developments, it offers actionable insights for informed decision-making about cryptocurrency exchanges.
