We can see, there are many crypto trading exchanges in the market. They offer different conditions and fee policies as well as different tools for trading. What unites them all is the opportunity to earn money on crypto assets and their price changes. That is the essence of traders’ work. Digital currencies are very volatile. Their rates may change every day and even several times a day, which makes crypto a very profitable tool.
Many complex trading strategies require thorough studying and practice. Beginner traders should start learning them and try them with small sums. All the operations with digital currencies take place on crypto exchanges, and here we will talk about what crypto exchange is, how it works, and how to find a credible platform.
How does Crypto exchange work?
A crypto exchange is a platform that makes it possible to trade digital assets for traders and investors. There are centralized and decentralized exchanges. The difference is in the way users’ assets are stored – in the case of a centralized platform, clients entrust their investment to the exchange’s storage. In the case of a decentralized platform, users’ assets move between their wallets and are not stored on the exchange.
Centralized platforms are focused on users’ safety and provide a high level of protection for clients’ funds. They also track suspicious activities and block those trying to commit illegal actions. We can conclude that centralized exchanges are safer and more reliable than decentralized. When it comes to beginner traders, we recommend starting their journey to the crypto world with official centralized exchanges: Binance (crypto exchange with most coins), Coinbase, WhiteBIT, etc. Besides the opportunity to trade crypto exchange also provides tools for trading and receiving passive income:
- margin trading;
- spot trading;
How does cryptocurrency exchange work?
- Enter the exchange website
- Pass KYC
- Deposit money. Some exchanges allow to do it through bank cards (WhiteBIT)
- Place an order (claim you want to buy cryptocurrency)
- Pay transaction fee
- Swap coins and receive needed crypto assets in your account.
These are simple steps on how crypto exchanges work.