Cryptocurrency Exchanges: The Place to Buy and Sell Coins
We’ve talked a fair amount about blockchain technology and cryptocurrencies. By now, you should be an expert in this field. Now that you have a basic understanding about this technology, you may be wondering, “How in the world do I get my hands on cryptocurrencies?” As some of you may already know, the answer is cryptocurrency exchanges.
What are Cryptocurrency Exchanges?
Cryptocurrency exchanges are similar to stock exchanges in that coins are bought and sold by traders. One major difference is that cryptocurrency exchanges operate without rest. They run 24 hours a day, 7 days a week, 365 days a year. Unlike the stock market, which closes early evening, the cryptocurrency market is global and never-closing. You may lose some sleep keeping up with the prices of your favorite coins.
An exchange will have a list of certain cryptocurrencies that you can trade. Some allow you to trade directly with fiat currency, say the U.S. dollar. Some only allow the trading of cryptocurrencies with Bitcoin and Ethereum usually being the base pairs. Nowadays, more pairings are opening, which gives you more options.
How Buying and Selling Works
To explain to a beginner, there are buyers and sellers on an exchange. A person will have a certain cryptocurrency, say CyClean, in his account. Let’s say this person has 10 CCL. If this person wants to sell his tokens, he can put them up for sale at whatever price he wants. If a buyer is willing to purchase his token at that price, then the exchange is done. In reality, there are more details to how an exchange works, but that is the gist of it.
Two Types of Exchanges
There are so, so many exchanges in existence. Everyone is joining in on the fun to create their own exchanges and make a fair share of money. As far as I know, there are two types of exchanges: centralized exchanges and decentralized exchanges (also known as DEXs). Centralized ones have a central authority that provides the service. This is probably the type of exchange with which you are familiar. Decentralized exchanges may be more foreign to you. DEXs allow trading to happen on a distributed ledger, and people can trade with each other without a middle-man. Both have their pros and cons. For example, decentralized exchanges typically have lower fees, which is good for the user. However, centralized exchanges make it easier to keep track of trading records, which may be required for taxes. You can do your own research and determine which is best for you!
Exchanges have played a significant role in the globalization of cryptocurrencies. In our next post, we will introduce the first exchange on which CyClean will be listed: Kocostock. Thanks for reading, and stay tuned for more sweet information!
** For more information about CyClean, please visit our website at cyclean.io.
What are Cryptocurrency Exchanges?
Cryptocurrency exchanges are similar to stock exchanges in that coins are bought and sold by traders. One major difference is that cryptocurrency exchanges operate without rest. They run 24 hours a day, 7 days a week, 365 days a year. Unlike the stock market, which closes early evening, the cryptocurrency market is global and never-closing. You may lose some sleep keeping up with the prices of your favorite coins.
An exchange will have a list of certain cryptocurrencies that you can trade. Some allow you to trade directly with fiat currency, say the U.S. dollar. Some only allow the trading of cryptocurrencies with Bitcoin and Ethereum usually being the base pairs. Nowadays, more pairings are opening, which gives you more options.
How Buying and Selling Works
To explain to a beginner, there are buyers and sellers on an exchange. A person will have a certain cryptocurrency, say CyClean, in his account. Let’s say this person has 10 CCL. If this person wants to sell his tokens, he can put them up for sale at whatever price he wants. If a buyer is willing to purchase his token at that price, then the exchange is done. In reality, there are more details to how an exchange works, but that is the gist of it.
Two Types of Exchanges
There are so, so many exchanges in existence. Everyone is joining in on the fun to create their own exchanges and make a fair share of money. As far as I know, there are two types of exchanges: centralized exchanges and decentralized exchanges (also known as DEXs). Centralized ones have a central authority that provides the service. This is probably the type of exchange with which you are familiar. Decentralized exchanges may be more foreign to you. DEXs allow trading to happen on a distributed ledger, and people can trade with each other without a middle-man. Both have their pros and cons. For example, decentralized exchanges typically have lower fees, which is good for the user. However, centralized exchanges make it easier to keep track of trading records, which may be required for taxes. You can do your own research and determine which is best for you!
Exchanges have played a significant role in the globalization of cryptocurrencies. In our next post, we will introduce the first exchange on which CyClean will be listed: Kocostock. Thanks for reading, and stay tuned for more sweet information!
** For more information about CyClean, please visit our website at cyclean.io.
