Step By Step Guide On How Does Cryptocurrency Exchange Function

Money has always been seen undergoing through series of dynamic changes right from barter system to banknotes and so on . Money is commonly accept by anyone for medium of exchange of anything , although it does not have any physical value .

In the recent years , we have seen rise in the trend of digital currency exchange . One of the most popular one is BitCoin  which is also a form of cryptocurrency which people over the world has started using as digital currency replacing physical currency . Although BitCoin has faced many criticisms like  illegal transaction, bubble etc . But ignoring all these it has series of benefits from it if it can be utilised with proper source and channel .

What Is Cryptocurrency Exchange ? 

A cryptocurrency exchange is online portal that facilitates buy and sell of digital currency in exchange of other available currencies . 

A user can either buy / sell / transfer cryptocurrency's through cryptocurrency wallet . At the later stage , these digital currency can then be converted into unspecified cards wherein user can withdraw money from ATM's .

Various Types Of Cryptocurrency Exchange Platforms 

Decentralised Cryptocurrency Exchange 

It does not have any centralised governing authority . Decentralised exchange facilitates peer to peer exchange backed up by secured and smart layers . The most famous being IDEX , Etherdelta etc which are known to be secured medium of exchange and at the same time is less prone to hacks .

Centralised Cryptocurrency Exchange 

It facilitates user with direct trading of cryptocurrency using flat money or other cryptocurrency . The exchange holds 100 % control over trading which puts limit on trading . At the same time it offers high liquidity , advance features and ease of usage .

How Does Cryptocurrency Exchange Works ? 

No matter whether it is centralise network or decentralised one , all cryptocurrency exchanges works in similar way . The only way of differentiation between the two is the way profit is generated in process of exchange .

Cryptocurrency exchange act as a common trading platform for exchange of cryptocurrency between buyers and its sellers . Let's discuss about its working by way of an example from BitCoin .

For instance you have a bitcoin which you want to trade in for x amount and terms and conditions . In order to do that you have to first place a request in the order book  , wherein people can look over the same and in case interested in buying can buy on preferred prices and process , and it is known to be trade taken place .

To sum up in few points for cryptocurrency exchange :

• User initially have to register with any bitcoin trading platform or any other exchanges . Once upon successful registration , user can deposit the amount by either using digital currency or flash money .
• The cryptocurrency exchange platform then matches buying and selling order by bidding using decentralised network .

What Are The Security Measure To Be Followed Before Joining Any Exchange 

If you are unaware , it may lead to trouble . There are many authentic as well as fake currency platforms that are currently running in there market . So let's quickly look at some of the points before investing in cryptocurrency platform .

Brand Name 

It is always preferable to check the authenticity of any cryptocurrency exchange before you invest in the same . As per me , the best way to check the popularity of any portal is to check the real user reviews . 

Moreover , in market their are numbers of forms available wherein you can raise your queries related to crypto exchange , namely BitcoinTalk or Reddit .

Authentic Payment Methods 

It is always a point to remember . It any trading exchange platform offers payment gateway with different options to pay , it will more convenient to user . However payment through debit or credit card might reveal your personal identity and thereby can be charged for higher transactions rates .

In case you are looking for developing your own exchange platform , always find a software development company who have in-house team of highly skilled developers efficient enough of handing and integrating multiple payment gateway .

Fees 

A good cryptocurrency exchange platform is known to be one that displays the fees involved in buying and selling and withdrawing of cryptocurrency , as it offers more transparency .

Exchange Rates 

The exchange rates always varies depending on exchange platform . Have a look at current virtual coin ranking here .

Also Read : Blockchain And Mobile App Development

Conclusion 

Without any further question asked , by above read we must be clear that Cryptocurrency has great potential to drive force in future , and can also become a common exchange platform for money .

So in case you want to explore more in this industry or willing to develop your own cryptocurrency exchange platform , then hire dedicated team of cryptocurrency development team now .