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It seems to be best practice for an exchange to run a node itself for a coin traded there.

But, is there an alternative?

A third party service? If yes, which are recommended and why?

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  • Inevitably if you don't want to run a node yourself, you'll be relying on someone else's. Service recommendations are off topic here. Nov 6 '20 at 22:46
  • What is to consider technically/security-wise when selecting a third party service? Lets leave out naming 3rd party services, since this would be off topic.
    – NB13
    Nov 6 '20 at 22:47
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    My advise is: don't, and if you do, I hope you never have any customers that entrust you with their funds. Nov 6 '20 at 22:52
  • :) this is a straitforward answer :) if the exchange chooses to run nodes, if there a coin where running an node is not 100 percent necessary? or should really ever coin have a running node for the exchange?
    – NB13
    Nov 6 '20 at 22:55
  • Questions about other currencies than bitcoin are off-topic here, but I can't imagine the situation is any better for other systems. Nov 6 '20 at 23:00
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It seems to be best practice for an exchange to run a node itself for a coin traded there. But, is there an alternative?

Alternative is to rely on someone else as mentioned by sipa which isn't best practice although few exchanges do it and face consequences for it.

Example: https://www.reddit.com/r/Bitcoin/comments/hpg9j3/336_btc_hacked_from_cashaa_they_were_using/fxrrbiw/

A third party service? If yes, which are recommended and why?

Lot of third parties provide services that exchanges don't have to run their bitcoin full node. I would never use an exchange if I know they are not competent enough to run full node and manage users funds securely.

Also service recommendations are offtopic here: How should questions that function like reviews be handled?

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