All You Need To Know About Cryptocurrency Exchange

All You Need To Know About Cryptocurrency Exchange

Cryptocurrencies have literally exploded in recent times with more and more people wanting to cash-in on this trend. Cryptocurrencies are also expanding into new sectors, facilitated by cryptocurrency exchanges. Now, if you are planning to jump into the bandwagon of the mystic world of cryptocurrencies, then you must understand what cryptocurrency exchange is !!

“Cryptocurrency Exchanges”: Cryptocurrency exchanges or digital currency exchanges (DCE) are businesses that allow customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money, or different digital currencies.” ~ Wikipedia

Apps for Cryptocurrency Exchanges

Coinbase: Most trusted cryptocurrency trading app currently available in the market that allows buying and selling of multiple digital currency.

Binance: Frequent Cryptocurrency traders do know that Binance makes withdrawals and deposits extremely easy via its 24×7 customer support service.

Blockfolio: Provide services for trading Bitcoin and Altcoins along with price alert service and complete management of investment via a handy interface.

crypto exchange

Source: bitemycoin

How cryptocurrency Exchange works?

First Step:

Create your wallet by using a third-party platform like Coinbase, Binance or blockchain.info. At the website of these wallet provider, just sign up that includes name, email address, and password.

See Also: 5 Best Alternatives To Coinbase 

Second Step:

If you have opted for a digital wallet, then you must download the app from Google Play store or Apple app store depending smartphone platform. Also, some wallets are specifically designed for mobile devices, while others are compatible with desktops.

Third Step:

Now, visit the exchange you’ve chosen i.e. Coinbase, Poloniex or BitStamp and register yourself with the exchange. Most of the exchanges will ask you to connect with your bank account for the payment of Bitcoin purchase.

While some exchanges offer apps that acts as an exchange as well as a wallet. Via these app, one can buy, trade and store Bitcoins. But this doesn’t mean that if you are using Coinbase exchange, then you must use Coinbase digital wallet. There are other options available in the market.

Fourth Step:

Visit exchange’s “buy” section and select the amount of bitcoin you want to buy. if you find Bitcoin expensive then you have the option to buy less than one Bitcoin. You must understand that Bitcoin can be divided up to eight decimal points. This means 0.5 Bitcoins, 0.02 Bitcoins and even 0.00000001 Bitcoin are real and can be purchased depending on your budget.

ico for crypto

Source: currency-rates

How cryptocurrency exchange is a lucrative business?

According to recent reports, Coinbase have made more than $1 billion last year while Binance is on verge to cross $850 million annually. Now the real question is whether it is possible to earn such huge profit from trading fees only or whether there is another revenue stream?

Well the answer is yes as these third-party exchanges are pocketing millions from the fees ICOs and altcoin developers pay to have their token listed.

Most cryptocurrency exchanges don’t openly publicize their listing fee subscription. But you must know that these are known to run into millions of dollars i.e. bigger the exchange, higher the price paid for tapping into its liquidity pool. And yes, these hefty listing fees is not limited to centralized exchanges but to major cryptocurrency mobile wallets too.

Read Also: 5 Amazing Places To Spend Your Bitcoins

Though the entire concept of Blockchain technology is linked with decentralization, cryptocurrencies are still severely dependent on centralized platforms. Safeguarding sustenance from big exchanges and chief software and hardware wallets isn’t essential. But without such acceptance, altcoins are at risk of being sidelined and unreachable to the masses. It’s one of many inconsistencies within the crypto space and to make it mainstream, it needs to be on mainstream platforms. This is all about cryptocurrency exchanges. If you have anything to share, please comment in the section below.

Shalini is a technical blogger at Systweak. She likes most things in general and likes to cover trending topics in a different light. She has a special affinity for chocolate cupcakes and shopping excursions.

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