Crypto exchanges are multifunctional trading platforms that allow registered users to sell, store, exchange and purchase digital coins, or in other words to trade cryptocurrency. The principle of operation of such projects is similar to currency, commodity and stock exchanges – prices are determined by the market, with established “supply/demand” ratios for a particular asset.
The most important features of the crypto exchange are, of course, the trading of instruments consisting of digital coins, such as BTC/LTC, ETH/XMR, etc., and sometimes with fiat currencies, such as BTC/USD, as well as the simplicity of the start of speculative activity. The latter aspect is due to no need to find a broker, obtain trading accreditation, etc.
You can get your first profit on the cryptocurrency exchange today, even if you are a beginner, because the volatility of the digital coin market is amazing, and can reach several tens of % per day, which in turn allows you to make a big profit in a short time.
However, it should be remembered that the cryptocurrency market is high-risk, and here you can easily lose your capital. Therefore, working on a cryptocurrency exchange, take into account possible trading risks and also other risks (e.g., the risk of losing trading capital when a hacker hacks the exchange, the risk of losing funds as a result of the global decline in the value of the cryptocurrency, etc.).
Exchanges can be used as wallets as well, but our recommendation is against this practice. You should always keep your assets in your own wallet, in your computer, hardware wallet or even paper wallet.
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