How does this work?

Discussion in 'General' started by thiefcrazy98, Nov 25, 2024 at 2:42 AM.

  1. thiefcrazy98

    thiefcrazy98 Member

    Hi! Can someone explain what a cryptocurrency exchange is and how it works? I've recently become interested in cryptocurrencies and want to understand. So far I've only heard that you can buy and sell various cryptocurrencies on such platforms, but I don't understand how exactly this process happens and what mechanisms are behind it all. Can someone tell me how this works in practice? Also, what exchanges would you recommend to start with? I would be grateful for clarification!
     
  2. EvanDuke

    EvanDuke Member

    I'm also new to cryptocurrencies, so I'll try to explain it as simply as possible. According to https://www.barchart.com/story/news/12880052/what-is-a-cryptocurrency-exchange-and-how-does-it-work, a cryptocurrency exchange is essentially a platform where users can exchange one cryptocurrency for another or for fiat money (rubles, dollars, etc.). It works like a regular financial exchange, only instead of stocks or currency, you buy, sell, or exchange cryptocurrency. The process of buying or selling on an exchange consists of several steps. First, you register on the exchange, create your account, and go through verification (on some exchanges). Then you need to top up your account - this can be either cryptocurrency or fiat money (for example, via bank transfer or cards). After that, you can choose the cryptocurrency you want to buy. The exchange displays the current cryptocurrency rates, and you choose, for example, to buy Bitcoin for Tenge or dollars. As soon as you make a deal, you become the owner of a certain amount of cryptocurrency, and it appears in your wallet on the exchange. If you decide to sell, the process will be similar - you choose the cryptocurrency you want to sell, and it is exchanged for money that can be withdrawn to a bank card or e-wallet. Cryptocurrency exchanges work on the principle of the "exchange glass". There are applications for buying and selling cryptocurrency, and if one of the sellers or buyers agrees with your price, the deal will be made. That is, buyers and sellers constantly set their prices, and when they intersect, an exchange occurs. It is important that cryptocurrency exchanges, as a rule, charge a commission for each transaction, but it can be small, within 0.1-0.5%.
     
  3. tbes50203

    tbes50203 Member

    Yes, cryptocurrency exchanges are a great place to buy and sell cryptocurrencies. It is important, as mentioned above, to choose trusted platforms. Personally, I also started with Binance and after a few transactions I realized that it is very convenient, with a good interface and many tools for trading. The main thing is to be careful and not rush with large amounts until you understand all the intricacies.
     
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