The rise of hybrid crypto exchanges and how they are bridging the digital asset trading gap

cryptonews.com:

With the global economy undergoing a radical transformation over the past decade, one sector, in particular, that has expanded and matured at an unprecedented rate is crypto. This is best made evident by the fact that approximately 562 million people worldwide — equivalent to 6.8% of the global population — now own digital currencies, a 34% surge from 2023, when approx. 420 million individuals owned crypto.

However, as the digital asset community has evolved, an ugly paradox has reared its head, i.e. while more individuals are entering the space, there’s a growing discontent with traditional centralized exchanges (CEXs).

In recent years, more and more users have become wary of the security risks associated with these platforms, especially when it comes to relinquishing control of their private keys and having to trust a third party with their hard-earned assets. Moreover, a string of high-profile hacks and exchange collapses have eroded trust further among the community, leaving many to look for alternatives.

On the flip side, decentralized exchanges (DEXs) have tried to position themselves as the perfect alternative to the security concerns plaguing CEXs, allowing clients to retain control of their assets through non-custodial wallets. However, these DEXs come with their own set of problems.

For starters, many users — especially those new to the crypto realm — find them difficult to navigate since they come with complex interfaces and a steep learning curve. Additionally, DEXs often struggle with liquidity issues and are mired by slower transaction speeds, making them less appealing for high-volume traders or those seeking quick executions.

This dichotomy between centralized and decentralized exchanges has created a gap in