What is a Crypto Exchange Platform? Do I need one?
What is a Crypto Exchange Platform?
A cryptocurrency exchange platform is an online marketplace where users buy, sell, and trade cryptocurrency. A cryptocurrency exchange works similar to an online brokerage, as users can deposit fiat currency (such as U.S. dollars), and use those funds to purchase cryptocurrency.
We use Coinbase and Binance as our main cryptocurrency exchanges. Although we do use other exchanges to purchase cryptocurrencies not listed on Coinbase or Binance.
How does a crypto exchange work?
A cryptocurrency exchange works like a brokerage, and you can deposit money via bank transfer, wire, and other common means of deposit. If a trader wants to trade between cryptocurrencies, they will pay a currency conversion fee, similar to institutional banks when you trade money from different countries.
Why do we need crypto exchanges?
Cryptocurrency exchanges work similarly to a broker, giving you the tools to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Tether. The best cryptocurrency exchanges make it easy to buy and sell the currencies you want with low fees and strong security features.