A cryptocurrency is a digital asset considered to execute as a medium of exchange that utilizes cryptography to protect transactions, control the generation of the further unit, and authenticate the transmission of digital assets, based on blockchain technology. There are Bitcoin, Ethereum, Ripple and other crypto coins as well.
A cryptocurrency exchange is a brand that is similar to digital currency exchange (DCE). Cryptocurrency Exchanges are online platforms that match buyers with sellers. Such exchanges would be referred with care as they need custody of your digital assets for allowing you to do trades. Meanwhile, this has broad inferences concerning the trading of altcoins and the trading of altcoins on a cryptocurrency exchange entails your characteristic lack of custody over your current digital assets.
Cryptocurrency Exchange is legit or regulated exchange in a specific geographic location. However, the trade might be carried out from any part of the world because it requires only internet connection, wallets, fiat currencies, and your trading platform. There are few famous names of cryptocurrency exchange like Unicoin DCX, Binance and much more.
How does an exchange work?
- First, you need to have one cryptocurrency exchange like Unicoin DCX, and then you have to deposit your fiat currency into the designated account.
- After the deposit, you can open trading software and place the order to buy cryptocurrencies as per the availability of the market depth.
- After buying, you have your cryptocurrencies in your wallet.
- The exchange charges a small number of fees for the overall transaction, for matching order, as well for security.
Benefits of Using an Exchange
A cryptocurrency exchange provides numerous benefits as compared to other direct party transaction and which are as follows.
- Secured transaction
- Reasonable buy and sell rates
- Good liquidity for buy and sell orders
- Variety of payment methods (direct bank transfer, credit card, debit card and other modes of e-payment)
- Built-in wallet services (Cold and Hot wallet)
A cryptocurrency exchange is similar to other commodity exchanges. In commodity exchanges, you can trade different type of commodities, and you can buy or sell cryptocurrencies through exchanges like Unicoin DCX, and much more. These exchanges take required security measurement for a safe transaction. There are various parties involved to carry out the business like the market maker or liquidity providers, traders, banks, and exchange itself. While choosing cryptocurrency exchange, you need to be careful and scrutinize everything like transaction fees, service charge, any hidden cost, and the security level. When you have an idea of entering into the crypto market, then cryptocurrency exchanges would be the better platform to buy or sell digital coins in a safe way and with low transaction cost.