How Cryptocurrency exchange works?

Question

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?

in progress 0
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.

Leave an answer

Browse
Browse

By asking your question, you agree to the terms of service and Privacy Policy.