If you have any device that has access to internet services, the chances are that you have come across the phrase crypto exchange or the word blockchain at some point or another.You may also have stumbled upon words like Cryptocurrency, Bitcoin, or Ethereum. These words are fast becoming popular and common these days. And they are not just common. They are beginning to permeate the economic sectors. Their popularity means both young adults and older ones, who are not so conversant with the economic space, have to know what these terms mean. So, what exactly is Crypto Exchange?
A Beginner’s Tip about Cryptocurrency
Cryptocurrency is a digital asset or a currency. It is a currency because you can use it to make transactions, and it has a market value.Also, it is considered an asset because it can be owned, stored, or even sold off at any time. Cryptocurrency is based on blockchain technology. Each block is made up of transactions that have been verified by each member of the network independently. Afterward, that block is added to a chain in that network. And that is how the technology got the name blockchain.
Crypto Exchange Starter Pack
Crypto exchange is a language used to describe platforms where cryptocurrency can be bought, sold, or exchanged. These platforms create an avenue for you to acquire cryptocurrency using your real money. These platforms essentially allow you to exchange your normal or conventional currencies, such as US dollars, Great British Pounds, Euros, Yen, and the likes, for cryptocurrencies. For instance, you want to make a crypto transaction but have no cryptocurrency. You can get on an exchange platform to convert your $100 to a cryptocurrency.
Depending on your choice of platform and your country, you can either buy the desired cryptocurrency directly at the current market value, or you first convert your money to a fiat currency. A fiat currency is a government-regulated tendernot linked to any commodity. On crypto exchange platforms, these fiat currencies are kept at a price similar to the actual price set by banks. They act as stable currencies similar to normal bank-controlled currencies.
Once you have purchased the fiat currency you need, for instance, USDT, or BUSD, representing US dollars. Then, you can purchase your desired cryptocurrency. As I mentioned earlier, some platforms allow you to purchase the desired cryptocurrency directly without first using fiats. This option is also dependent on your country.
In a nutshell, crypto exchange is an online platform that allows you to buy and sell cryptocurrencies. They require wallets, which are in a way synonymous with bank accounts. These wallets hold your cryptocurrency, it can receive cryptocurrency, and you can use it to sell or exchange cryptocurrency when needed.Several crypto exchange platforms exist out there that are ready to take your money fraudulently. Hence, knowing and using one which is trusted requires adequate research. Doing in-depth research is key to not losing your assets to flukes and fraudsters.