Cryptocurrency Exchange Platforms:
Cryptocurrency platforms are digital forums. Where various cryptocurrencies can be traded with other digital currencies or fiat money (Fiat money can be defined as, money governed by different countries government officially like US Dollar, Euro, etc.). These Cryptocurrency exchange platforms work as a brokerage to play an intermediary role between various sellers and buyers of different digital and fiat currencies platforms can genuinely be categorized into two (2) types as mentioned below,
- Centralized Cryptocurrency Exchange Platforms
- Decentralized Cryptocurrency platforms
Centralized Cryptocurrency Exchanges:
Centralized Platforms works on the similar concept of regular stock exchanges. There are three steps fulfilled by three players to complete one transaction in such platforms. These three players can be categorized as a buyer (maker), the seller (taker). In this technique, Buyers or maker set a price (bid) to buy a specific currency while on the other hand, the seller (maker) also set a price to sell his/her Digital currency. Finally, the critical role of exchange starts, the software matches buyers and seller prices to find an exact match. After finding a demanding match, the transaction is completed. Different exchange platform imposes various fees to find an exact match.
Centralized cryptocurrency platforms are considered easy to use, especially for beginners. If you are interested in any digital currency trading through a centralized platforms. You have first to register yourself to any software to open an account. After fulfilling verification requirements of the exchange, your account will be opened. Now, you have to transfer funds into your account by using means provided by your digital money platform. Funds can be transferred into your account through banks, debit or credit card, pay order or through PayPal etc. It depends on your chosen your digital way. Similarly, through the same means, funds can be withdrawn by the user when needed. If you need any kind of information on this article related topic click here: crypto to crypto exchange