Cryptocurrency exchanges are different: they are divided into those where trades are presented only in Bitcoin and its forks, and those that trade a wide range of cryptocurrencies. The exchanges that trade only Bitcoin are called “bitcoin exchanges”. Now this concept can be considered obsolete, although it is still very often found in relation to cryptocurrency exchanges.
What is a cryptocurrency exchange?
This is a place where people can exchange one cryptocurrency for another or buy tokens for fiat currencies (dollars, euros, pounds, rubles, and so on). The place is in the virtual world.
The main users of the exchanges are:
- Traders who make money on token exchange rates in a short period of time
- Investors who buy certain coins with the expectation of future growth
- People who need a certain amount of cryptocurrency for a specific purpose - to pay for a product or service, for which money is accepted only in a crypto, play a crypto game, for example, crypto kittens and so on.
Cryptoexchanges are a kind of stock market, but for digital money. On such exchanges are published:
Graphs of changes of the exchange rate of cryptocurrency, so users can track price changes.
History of transactions - allows you to track how users behave and how they react to market changes.
Buy and Sell Orders - buy orders / sell orders. Allow to predict how the market will change.
The trading volume is indicated not on all, but on most exchanges. It allows you to track the massive trends in the behavior of the holders of the crypt.
All this information allows you to predict market changes and respond quickly to them. Graphs and data demonstrate when the holders of a certain coin experience a “risk-on” situation, when a pumping or dumping occurs, an artificial rate manipulation.
Thanks to these data, an experienced trader receives information to predict future changes in cryptocurrency price. Since the cryptocurrency market is distinguished by high volatility, it is more difficult to predict changes than changes in the fiat currency and securities market. To predict the future, use the methods of technical analysis.
You will need to register, create an account and deposit money in dollars, rubles or other currency to start using cryptoexchange services. Cryptocurrency exchanges are divided into those where you can only trade in pairs of cryptocurrencies and funds there can only be deposit in cryptocurrencies. And on those where you can trade and crypt, and fiat money.