Cryptocurrency Exchanges are online platforms where you can exchange one cryptocurrency for another cryptocurrency, or fiat currency as well. The first cryptocurrency exchange was now a defunct platform called Bitcoinmarket.com. The platform was proposed by a user named “dwdollar” on the Bitcointalk forum on January 25, 2010. Shortly after, on March 17, 2010 Bitcoinmarket.com went live. Today, there are numerous platforms for cryptocurrency exchange and here is a consolidated list of best Top 8 cryptocurrency exchanges that are revealed to have actual volume:
How Do Cryptocurrency Exchange Work?
They allow exchanging cryptocurrency for another, the buying and selling of coins and the exchange of fiat money into cryptocurrency. Cryptocurrency exchanges set the rate of the currencies for both coins and tokens. The cryptocurrency rate usually depends on the actions of sellers and buyers, though there are other aspects that can affect the price.
Various cryptocurrency exchanges may have different features and functions. Some of them are made for traders, while others are made for the prompt crypto-fiat exchange. Cryptocurrency exchanges that are designed for regular traders allow you to buy cryptocurrencies and sell them with lower commission fees compared to crypto-to-fiat exchanges. On top of that, trading platforms charge fees for withdrawing money from the account.
Fundamentally, cryptocurrency exchanges work similarly to regular stock exchanges. However, there is slightly different for both, given that on a stock exchange, traders buy and sell assets — shares or derivatives — in order to profit from their changing rates, whereas on cryptocurrency exchanges, traders use cryptocurrency pairs to profit from the highly volatile currency rates.