Are you new to crypto trading? Don’t have a clear idea about the working of a cryptocurrency exchange platform? A few days before, I was also in the same stage. In this article, let me share what I know about cryptocurrency exchange and start traveling together.
Cryptocurrency Exchange:
In simple words, a cryptocurrency exchange is a place where both the buyer and the seller connect to take part in cryptocurrency trading. It is an open market, which operates 24*7 unless there is server maintenance. There are five types of cryptocurrency exchange. They are,
Centralized exchange.
Decentralized exchange.
One page exchange.
P2P exchange
Hybrid exchange.
How does a crypto exchange work?
A cryptocurrency exchange is an online platform built on blockchain technology. Before starting to trade, we need to log in to the cryptocurrency exchange. First, we need to go to the official page of the cryptocurrency exchange and click on the login button. Then provide personal details like name, email id, mobile number and verify it. We need to provide id proof for KYC verification. Once we complete the KYC verification, we can start our crypto trading.
Mark is a crypto trader and he wants to buy 1 BTC for $45,000. He needs to place a buy order with the quantity and price. This buy order gets stored in the order book.
Dieter is another crypto trader and he wants to sell 1 BTC that he holds for the same price as Mark. He places a sell order with the quantity and price amount. This sell order will get stored in the order book.
The match engine matches the buy and sell order and completes the trade.
Apart from trading, exchanges provide many services like staking, lending, margin trading, P2P trading, and more.
Where to build your own cryptocurrency exchange?
Businesses or individuals who are interested in crypto business can develop their own cryptocurrency exchange platform. Before you develop a cryptocurrency platform, get a clear idea about the process involved in it. It includes legal clearance, planning, designing, developing, testing, deploying, and launching. Blockchain Firm provides the best cryptocurrency exchange development service.