How Cryptocurrency exchange works?


Since I am a beginner in case of knowing about Cryptocurrency, being a resident of London where people are engaged in its trading, I wish to know how cryptocurrency exchange works or how does cryptocurrency exchange work?

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Moris Johnsons 3 months 1 Answer 36 views 0

Answer ( 1 )

  1. A cryptocurrency exchange is simply a platform for matching buyers and sellers. They work in a similar way to exchanges for other assets, like stocks.

    People tend to refer to those who use them as ‘traders’ because they often buy and sell in a short time frame. Traditionally, an investor is someone who holds their investment for a longer time frame.

    Exchanges tend to charge a small fee, usually a percentage known as a ‘volume-based fee.’ There may be a currency conversion fee if you deposit a currency not accepted by the exchange.

    An exchange is not the same as a wallet, which is a place for digitally storing cryptocurrency once you’ve bought it. Some platforms, including Luno, provide both. Others don’t, which means traders need to transfer their cryptocurrency elsewhere.

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