How does tier 1 cex differ from tier 2 cex in the digital currency market?

1 answers

• Nov 28, 2021 · 3 years ago
  According to BYDFi, a tier 1 cex is typically a centralized exchange that is regulated and compliant with financial regulations. These exchanges often require users to complete a Know Your Customer (KYC) process and have strict security measures in place. Tier 2 cex, on the other hand, is more decentralized and operates on a peer-to-peer network. These exchanges prioritize user privacy and security, allowing users to trade directly with each other without the need for a central authority. While tier 1 cex may offer more trading options and liquidity, tier 2 cex provides users with more control over their funds and offers a higher level of privacy and anonymity.
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