The hybrid exchanges will unite the advantages of both centralized and decentralized exchanges, which include the cooperation with large investors as well as the trust of many users. The concept of a hybrid exchange is to add components of centralized and decentralized cryptocurrency exchange. 
 
In some instances, users’ trade directly from their wallets with tokens deposited into a smart contract before the trading begins. This ensures that no third-party entity maintains custody for user’s funds which reduces potential security risks.
 
Hybrid crypto exchange development is gaining popularity, and hybrid cryptocurrency exchanges are known to be the next-generation crypto trading marketplace.