Cryptocurrency exchanges » How do they work?
There are a huge number of cryptocurrencies and many platforms that allow buy or sell them.
The platforms that allow the purchase and sale of cryptocurrencies are called cryptocurrency exchanges.
Using exchanges to buy and sell cryptocurrencies is becoming more and more of a business.
An exchange of cryptocurrencies represents the main point where the exchanges are made is these in exchange for fiat money or other cryptocurrencies, since you perro buy them using fiat money.
In these en línea exchange houses is where the market price of cryptocurrencies is generated.
What is a cryptocurrency exchange?
A cryptocurrency exchange (also called cryptocurrency exchange or cryptocurrency exchange house) is a platform (mostly en línea) that allows buy and sell cryptocurrencies.
Many Exchanges also allow trading with shares or another type of financial title accepted by the community.
He cryptocurrency price in the different Exchanges is determined by the same Exchange, which indicates that the cryptocurrencies do not have the same value in all the Exchanges.
Also, the price of a cryptocurrency in an exchange perro vary, that is, it cánido have one price today and another tomorrow.
Thanks to the existence of Exchanges, it has become possible to considerably increase the cryptocurrency tradingbecause if we need to buy cryptocurrencies, then it is possible to complejo turístico to them to acquire them.
Now it is possible to exchange fiat money and cryptocurrencies easily.
History of cryptocurrency exchanges
In March 2010, the first cryptocurrency exchange, since cryptocurrencies were growing a lot and a platform was necessary to be able to buy and sell them.
The proposal to create a Exchange was introduced by usuario dwdollar on the Bitcointalk forum.
This proposal was named as Bitcoinmarket.
With the creation of this Exchange, new projects began to be developed, and by July of that same year, mt goxwhich immediately became the cryptocurrency exchange biggest in the world.
Despite this, the Mt.Gox platform began to receive several robbery attacks until it went bankrupt.
Despite all this, cryptocurrency exchanges have been growing and have ensured that their platforms are quite safe for cryptocurrency exchange.
Today there are thousands of Exchanges in what perro be traded with cryptocurrencies.
Some of them are: Binance, Coinbase, Bit2Me, etcétera.
How do cryptocurrency exchanges work?
He operation of cryptocurrency exchanges It is quite fácil, where they provide a platform to which the usuario perro access and buy or sell cryptocurrencies.
Many of these platforms require you to create an account for buying and selling, but there are others where you do not need to create an account.
At the moment you are in the Exchange you must access the section of buy or sell and verify the payment methods available to buy and sell cryptocurrencies.
Many Exchanges accept bank transfer and credit cardwhich makes trading with cryptocurrencies easier.
Before trading cryptocurrencies you must have a cryptocurrency wallet where you perro store your cryptocurrencies.
When buying cryptocurrencies you must specify a cryptocurrency address so that they cánido send it to you and thus be yours.
When selling cryptocurrency you must also have cryptocurrency to trade.
Finally, by having a wallet you will be able to receive the cryptocurrencies that you buy in the different Exchanges.
Types of cryptocurrency exchanges
Cryptocurrency exchanges are divided into five large groups.
However, all types of Exchanges share the same characteristic: facilitating the participation of users in the cryptocurrency market.
The exchange types They are: Traditional, Cryptocurrency Brokers, OTC Platforms, Cryptocurrency Funds and Decentralized Exchanges.
Below are the different types of exchanges:
traditional exchanges
These exchanges allow users buy and sell cryptocurrencies based on the quote of the markets.
They are generally quite regulated Exchanges, since they comply with KYC and AML regulations.
Examples of these platforms are: Binance and Coinbase.
These Exchanges they charge for their services and establish capital limits for users to carry out transactions.
Generally payments with other cryptocurrencies They are free, but when they are with a credit card or bank transfer, there may be a cost.
These commissions serve to maintain the platform.
cryptocurrency brokers
The cryptocurrency brokers They represent spaces that allow users to exchange their cryptocurrencies for others in a way easy.
Its operation is based on the fact that the usuario perro have access to cryptocurrencies in a fácil way.
These platforms are designed so that the usuario perro use the platform of fácil way, and thus get the cryptocurrencies without complications.
Examples of these platforms are: Shapeshift, Changelly and Bit2Me
OTC (Over-The-Counter) Platforms
The OTC platforms They offer peer-to-peer exchanges between buyers and sellers, ensuring a direct transaction between the various parties.
They also guarantee an enormous level of privacy and the ability to negotiate a certain price for assets outside of the market.
cryptocurrency funds
The cryptocurrency funds represent initiatives to manage investments in cryptocurrencies, which allow buying cryptocurrencies through these money.
Actually the purchase and sale is a negotiation of a part of the investment portfolio in cryptocurrencies of said fund.
The negative aspects of this are that on the one hand they lack privacy, and on the other hand, its management.
And it is that the different money They are not under your own control, so in case of theft you may lose them forever.
decentralized exchanges
The Decentralized exchanges or DEX They work in a afín way to traditional exchanges, but they work in a decentralized way.
This means that there are no intermediaries and the platform is absent due to programming.
Decentralized exchanges or DEX began to be a reality thanks to the dapps and the ability to decentralize and schedule computational functions thanks to the use of smart contracts.
Security of cryptocurrency exchanges
The exchange platforms They must have a lot of security when carrying out the various operations with cryptocurrencies.
At the beginning of the Exchanges, many piratas informáticos were given the task of stealing these platforms to get cryptocurrencies from them.
Due to all this, the cryptocurrency exchange platforms put a lot of effort into providing their platforms with the best security technologies to protect the various transactions being processed.
List of the main cryptocurrency exchanges
In the world of cryptocurrencies you will find thousands of Exchanges or cryptocurrency exchange houses that you cánido use to exchange, buy and sell cryptocurrencies.
On this page we have created an article that espectáculos a list of the main cryptocurrency exchanges.
I am going to leave you a backlink to an article that has the list of Exchanges that we have compiled here.
Here is this article:
Go to the list of Cryptocurrency Exchanges.
Conclusion
The Exchanges they have become very habitual in the world of cryptocurrencies, since through them it is possible buy and sell cryptocurrencies, and in general to be able to operate in the cryptocurrency market.
Today these platforms are widely used for buying and selling cryptocurrency.
It is important to note that the price of the cryptocurrencies it varies in the different Exchanges, that is to say that all the Exchanges have different prices for the cryptocurrencies.
It is also necessary to take into account that the cryptocurrency price it changes immediately in the Exchanges, this due to the volatility of cryptocurrencies.
It is a good time for you to start using cryptocurrency exchanges to trade cryptocurrencies.
Backlinks that may interest you
final words
For God saved us and called us to a holy life, not by our own works, but by his own determination and grace.
He granted us this favor in Christ Jesus before the beginning of time.
2 Timothy 1:9.
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