What is Cryptocurrency Exchange?
When you examine the definition, cryptocurrency exchanges are platforms where buying or selling transactions are made between cryptocurrencies or fiat and tokens.
In the system based on the exchange, cryptocurrencies are converted to each other and these transactions take place quickly. If you wish, you can also convert your existing cryptocurrencies into fiat via the stock market.
When you look at it as a working system, crypto money exchanges have a similar system with real exchanges.
The most important difference here is that there is no intermediary institution!
All trading takes place by the users themselves.
For example, when you research how to buy bitcoin which is the most preferred cryptocurrency, you can see that the trading is done directly by you.
Some of the cryptocurrencies (Bitcoin, Ethereum) can be owned by mining.
Due to the mining of many devices around the world, there has been a serious decrease in the rewards given per block. This is why it is very difficult nowadays to have crypto money with mining. It continues thanks to powerful computers developed just for mining.
The sites where you can buy crypto money with fiat are called “Crypto Currency Exchanges”.
WHAT SHOULD BE CONSIDERED WHEN CHOOSING A CRYPTO CURRENCY EXCHANGE?
The question of Which is the Best Cryptocurrency Exchange is also among the most sought after on the internet with the rise of crypto money.
The most important answer to this question is the ‘reliable’ stock market.
So, what should be considered when choosing a cryptocurrency exchange?
There are multiple details to consider when choosing a cryptocurrency exchange.
a. Security is the first of these and it is also of great importance for users.
b. Transparency, accessibility
d. Legal compliance and rules in the country
e. Transaction volume (Exchanges with high trading volume have higher number of transactions, which can give users more confidence)
f. Commission fees
g. User experience
h. While listing the best of mobile applications, security and application speed come to the fore.
In addition, the possibilities offered by the application types to the user and the commission fees charged are also taken into consideration.
What does Cryptocurrency mean?
This system, which takes its name from the encryption unit cryptography, is a virtual and digital currency. No institution or organization can manage this currency, which is not dependent on any central authority.
Crypto, a virtual currency, uses an encryption method that converts user accounts and information into code. Virtual codes are created to access and process each piece of information and the security circle is provided in this way. Mathematically encrypted digital currencies are organic and cannot be tracked by any institution or organization.
The depreciation or appreciation of cryptocurrencies produced by individual users is still under the monopoly of individuals, and the value of a currency may change according to the supply-demand balance.
MANUFACTURED IN CERTAIN NUMBERS
Cryptocurrencies derived from the words ‘cryptocurrency’, ‘crypto’ and ‘currency’ are produced in certain numbers.
In the analysis titled “Blockchain Technology and Bitcoin” prepared by SETA in 2018, “The demand for Bitcoin, which is the strongest among cryptocurrencies, is limited to 21 million.”
Provided that the system works correctly, by 2140, the maximum amount of Bitcoin in circulation will reach 21 million and the growth rate will converge to zero.
The purpose of keeping the demand for Bitcoin limited is to ensure that it is treated like money for gold.”
What are the Differences Between Cryptocurrency Exchanges?
Cryptocurrency exchanges differ according to the types of assets they trade and the type of users they address.
There are exchanges where you can trade fiat, as well as exchanges where you can only trade with cryptocurrencies.
You can exchange your cryptocurrencies with another cryptocurrency.
In these exchanges, certain cryptocurrencies are usually traded. Cryptocurrency exchanges are divided into two according to the customer they address.
a. Exchanges that operate regionally and only serve certain customers.
b. Global exchanges that provide services around the world are exchanges where you can trade without any binding.
Most of the global stock markets do not offer the opportunity to trade in real currencies.
DEX on BSC Network