Cryptocurrencies have what is called an exchange. Based on the currency exchange definition, an exchange is a business that allows customers to exchange a currency of one type for a currency of another type.
This provides a hint to the answer of “what is a cryptocurrency exchange?”
But cryptocurrency exchanges are a little more complex than you may think.
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What is a Cryptocurrency Exchange?
An exchange is a platform consisting of a dashboard that allows you to trade one currency for another. You may be trading your fiat currency, such as the British pound or euro to purchase a cryptocurrency, such as Bitcoin or vice versa.
What are the Types of Exchanges?
When you start looking for an exchange to use for your trading, you’ll find that there are a lot of exchange types. Which type of exchange is best for you?
Direct Trading Platform
A direct trading platform is a seller and buyer platform where peer-to-peer trading can be conducted. The buyer and seller will use the platform to conduct the trade and exchange currencies.
Brokers provide a platform, but they have more control over the pricing. The broker will set the price of the cryptocurrency, so there are no negotiations that take place.
Funds are joint pools that hold cryptocurrencies. The fund allows you to purchase a currency that is held in the fund. You won’t directly own the currency, but you own a stake in the fund. You also don’t have to store the currency in a wallet.
Nebeus offers one of the best Exchanges on the market with high exchange rates and fast and reliable service.
How Cryptocurrency Exchanges Work
We know what an exchange is, a place to exchange one currency for another, but let’s take a look at how cryptocurrency exchanges work.
The exchange will, in most cases, provide a dashboard where you can trade a variety of assets.
You can often trade:
- Fiat money for crypto
- Crypto for Fiat
- Trade crypto for crypto
You will also need a crypto wallet for sending and receiving crypto.
You can keep all of your currency on a platform, or you can choose to withdraw your currency from a platform.
Choosing Your Cryptocurrency Exchange
Nebeus’ wallet includes an integrated exchange that allows you to buy and sell cryptocurrency right from your wallet. Approximately 98% of the platform’s currency is kept in what’s called “cold storage,” so it’s highly secure and ready to be transferred or exchanged.