An exchange is a regulated marketplace where commodities, securities, and other financial instruments are traded. An exchange may run on a physical space or a virtual platform. Initially limited to physical trading, many traditional exchanges now offer digitized services to enable electronic trading, commonly referred to as paperless trading. As an intermediary allowing traders to readily purchase and sell their assets while being less sensitive to financial hazards, an exchange serves as one of the key purposes of an exchange by providing liquidity within a secure and organized trading environment. Exchanges can be categorized based on the type of deal that is being made. The only exchanges that conduct spot trades (instant settlement) are traditional exchanges. On the other side, some exchanges offer trading in derivatives like futures and options. The trading of stocks, bonds, commodities, and currencies on the foreign exchange market (Forex) are some examples of financial products that are exchanged on exchanges. However, a lot of exchanges offer a wide range of services and trading opportunities. For instance, futures trading is available on several commodity exchanges. The principal exchange is the most significant stock exchange in a certain nation. The New York Stock Exchange, Tokyo Stock Exchange, and London Stock Exchange are a few examples of principal exchanges. Only businesses that successfully meet specified criteria are listed on the majority of stock exchanges' rigorous listing criteria. Digital exchanges are in charge of giving consumers a platform where they may swap one cryptocurrency for another or buy and sell their coins for fiat money in the context of cryptocurrencies. The majority of cryptocurrency exchanges now use a centralized system that is managed by a private business that serves as a middleman and is in charge of managing all trades and transactions. Liquidity and simplicity of use are centralized exchanges' main benefits. In terms of drawbacks, these centralized systems are vulnerable to outages and cyberattacks, which raises serious questions about security. It is crucial to select an exchange that has a track record of being dependable and secure because users must trust the company with their holdings in order to be able to trade. As an alternative to centralized exchanges, decentralized cryptocurrency exchanges (often referred to as DEX) were developed. DEX platforms operate trades and transactions in a trustless automated environment (based on smart contracts) without the need for an intermediary. Decentralized exchanges cannot offer fiat currency services like fiat/crypto trading or fiat withdrawals/deposits, despite the fact that these trading platforms are less vulnerable to cyber-attacks and infrastructure failures. Additionally, because these exchanges are less well-known and have fewer features than centralized ones, their trading volume is typically substantially smaller.