What is Cryptocurrency Exchange? Which cryptocurrency exchange can trade Bitcoin? Cryptocurrency is a kind of digital currency. Its creator designed them to be very secure and anonymous in most cases. In other words, people can trade without revealing their identity. So what is cryptocurrency exchange? Let's take a look.

What is Cryptocurrency Exchange?

Cryptocurrency exchange is a platform that can trade cryptocurrency. You can use the exchange to exchange one cryptocurrency into another, for example, convert Bitcoin into Lettercoin or use conventional currencies such as US dollars to buy cryptocurrency. The exchange reflects the current market price of the cryptocurrency they provide. You can also exchange the cryptocurrency back to USD or other currencies at the exchange, leave it in your account in cash (if you want to trade back to cryptocurrency later) or withdraw it to your regular bank account.

Which cryptocurrency exchange can trade Bitcoin?

Centralized exchange:

Centralized market is the earliest and most extensive form of trade. Bitcoin, natural methods, Kraken and Gemini are common cryptocurrencies in this category. These companies are commercial organizations that provide transaction facilities for cryptocurrencies. These transactions require registration and authentication, also known as knowing your customers or your own customer regulations.

The trading of listed stocks is active, with large volume and strong liquidity. Having said that, the centralized exchange does not follow the concept of blockchain. They run on their own private servers to build attack vectors. In many cases, you should use Bitcoin, and perhaps other blockchains. Unless the organization's servers are threatened, the entire enterprise will have to be suspended for several months. Worse, it is important to share personal consumer knowledge.

The larger and more common centralized market is by far the simplest entrance for potential customers. If their services collapse, they can even provide a form of protection. Although this is effective, it is stored in their custody account, because cryptocurrency is traded on all these exchanges, rather than stored in the wallet with access key. This insurance is only provided in the event of company failure. For example, if your computer and cryptocurrency account are invaded, you will lose money and you will never have the right to claim protection.

Decentralized exchange:

The decentralized market operates in the same way as Bitcoin. Instead, think of it as a cloud, but every device inside the server is distributed around the world, and one person manages every computer representing a component of the server. The shutdown of one machine has little impact on the whole network, but many devices can continue to run the network.

This is very different from the fact that an enterprise owns a machine in one place. Things that threaten decentralization and decentralization in this way are much more complex, which makes these attempts impossible and may not succeed.

Because of this decentralization, these forms of markets may be subject to the supervision of any administrative agency, because no single entity or organization will supervise the mechanism. Participating citizens come and go, but no one or community is actually supervised by political or regulatory agencies. This shows that anyone who deals with the exchange does not have to declare their identity and can use the forum in any way they choose, whether legal or not.

In general, the above content introduces in detail what the cryptocurrency exchange is and which cryptocurrency exchange can trade bitcoin. I believe you will understand after reading it. In short, cryptocurrency transactions are an integral part of the way people and institutions access Bitcoin (BTC) and other digital assets.