It’s time to get into the world of crypto. And let me tell you, it’s a crazy place! There are coins popping up everywhere, and if you’re not careful, your money could be gone in an instant. But don’t worry. We have this guide for beginners that will teach you all about crypto exchanges so you can find out what they are, how they work and why we need them!
What is a Crypto Exchange? A crypto exchange acts as a platform for buyers and sellers to trade cryptocurrency.
Here’s how it works: When you want to buy or sell something, you contact an intermediary who matches your requirements with someone else who has the opposite requirement; so, if I have some Bitcoins that I need to get rid of, I’ll contact an intermediary who will find someone who wants to buy Bitcoins from me. Sort of like going to a money exchanger at the airport. Trade US for Canadian dollars (FIAT, we will explain this “FIAT” thing later in another post).
Crypto exchanges come in all shapes and sizes. But the most popular ones are those that allow you to trade different cryptocurrencies against each other – for example, you might be able to trade Bitcoin against Ethereum on one exchange, or Litecoin against Dash on another.
Why do we need Crypto Exchanges? Cryptocurrencies only have value if people are willing to trade them for goods and services. And, as with anything else, the more people who want to buy or sell a particular cryptocurrency, the more stable its price will be. This is why we need crypto exchanges – they allow people to buy and sell cryptocurrencies with each other, which helps to establish their value.
How can we make money with Crypto Exchanges? One way to make money from crypto exchanges is by trading different cryptocurrencies against each other. For example, you might think that the price of Bitcoin will go up in the future, so you might buy some now in order to sell them later at a higher price.
Another way that you can make money from crypto exchanges is by becoming an intermediary yourself! For example, if I have some Bitcoins and want to buy something with them but the seller doesn’t accept Bitcoin as payment for their product or service, then I’ll need to find someone who does want to trade Bitcoin for something else. This is where crypto exchanges come in – they allow buyers and sellers to find each other and make a transaction.
So, now that you know just enough about crypto exchanges, it’s time to start trading… well maybe not, but at least you can fund your wallet with some cryptos and buy your first NFT!
Just be careful not to lose your money in the process! And if you’re ever feeling a little lost, you can visit our site any time and we’ll be more than happy to help.
Here are some other crypto topics we cover.
-How Do Cryptocurrency Transactions Work?
-The Difference Between Coins and Tokens
-What is Fiat money (FIAT)? What does FIAT mean in cryptocurrency trading?
-How to Buy Cryptocurrency
-How to Sell Cryptocurrency
-What is a Non Fungible Token? (NFT)
-Why are NFTs so popular? What can you do with them?
-Crypto Exchange vs Crypto Wallet: What’s the Difference?
-How to Fund Your Cryptocurrency Wallet on an Exchange?
-Why is it so important that you use a crypto wallet while trading cryptocurrency at exchanges like Binance, Coinbase and Kraken. Which one should you choose? These are just some of the questions that we will answer in this article.
-How to Store Cryptocurrencies Safely: The best wallets for Bitcoin, Ethereum, Litecoin and Ripple
-What is a Hard Fork? What happens when there is a hard fork?
Knowledge is power. Be empowered!
This is not meant to be financial advise. This is simply an overview into a part of the decentralized web and crypto currency.
