A cryptocurrency exchange is the meeting point where cryptocurrencies are exchanged in exchange for fiat money or other cryptocurrencies. In these online exchange houses where the market price is generated that marks the value of cryptocurrencies based on supply and demand.

Ethe name of cryptocurrency exchange or cryptocurrency exchange, It makes mention of a generally virtual space, in which cryptocurrency buying and selling is carried out. Many exchanges also allow trading in stocks or any other type of financial security accepted by the community that makes it up. The purpose or objective of these is simple: allow the user or trader, participate in a market in which you can make profits thanks to the price variations that occur in it. All this due to the fact that these assets are operated using the free market value associated with each one of them.

Thanks to the existence of the exchanges, it has been possible energize the economic and financial life of cryptocurrencies. It is now possible to exchange fiat money for crypto or vice versa with ease from anywhere in the world. All this with relatively low commissions compared to other traditional trading methods.

A bit of history about exchanges

Since the appearance of Bitcoin In January 2009, cryptocurrencies have rapidly revolutionized the world. As of October 11, 2009, Martti malmi makes the first exchange of btcoins for fiat. This action led to the creation of the first Bitcoin exchange, the well-known NewLibertyStandard. Just over a year after its appearance, in March 2010, it developed Bitcoinmarket which was a proposal presented in the forum Bitcointalk by the user dwdollar.

Bitcoinmarket presentation at Bitcointalk

The user dwdollar he presented on January 15, 2010, your project Bitcoinmarket As follows:

I am trying to create a market where Bitcoins are treated as a basic product. People will be able to exchange Bitcoins for dollars and speculate on the value. In theory, this will set a real-time exchange rate, so we will all have an idea of ​​what the current value of a Bitcoin is, compared to a dollar.

This paved the way for other similar projects to begin. For the month of July of the same year, Mt.Gox. This exchange would quickly become the largest cryptocurrency exchange in the world. Nevertheless, in mid-2011 he was hacked and robbed of 2.000 Bitcoins. Later, in April 2012, Martti Malmi created eurobtc.com, another Bitcoin exchange that allowed the purchase and sale of BTC using SEPA transactions.

However, in 2014 Mt.Gox would suffer another attack with a more dire scope, forever marking the history of cryptocurrency exchanges. At that time 850.000 BTC would be stolen, a total of $ 460.000.000 USD. This fact would gradually lead Mt.Gox to bankruptcy.

Despite these problems, cryptocurrency exchanges were growing in number and evolving in quality, security and services. Up to the current point where options like Binance, Creak or our platform Bit2Me DEX. All these options born with something very clear: provide quality options to cryptocurrency traders worldwide.

How much do you know, cryptonuta?

Is it safe to use a cryptocurrency exchange?

TRUE!

If the exchanges are very secure and robust platforms. Since its appearance in 2010, they have evolved a lot and have become a powerful option to consider to carry out cryptocurrency exchange quickly and easily.

Types of cryptocurrency exchanges

Exchanges can be classified into five large groups, each with different characteristics, capabilities, and objectives. Despite this, they all share something in common, they are all platforms designed to facilitate the participation of their users in the cryptocurrency markets. For this they have tools technical analysis, a great suite of indicators and they even make available fundamental analysis. All this thinking of offering the best tools so that the trader can do his job and make the best decisions at all times within the market.

In this sense we can mention the following types of exchanges:

Traditional

This category of exchanges includes the platforms that users access to buy or sell tokens according to the market price. They are usually highly regulated platforms, which meet the standards of KYC (Know your client) y AML (Anti-Money Laundering). This means that they are platforms that are not private, since the user must disclose their identity to participate in it. Example of these platforms can be Binance, Creak, Coinbase o Bitfinex.

Usually Traditional exchanges charge for their services and establish certain capital limitations to participate in their platform. For example, Coinbase has commissions ranging from 0 to 0,25% for trades. maker / taker. In addition the charge for deposit or transfer within the platform it depends on the medium used for such operations.

In the case of using cryptocurrencies, no charge is made. But In the case of bank transfers or other payment methods, it can be free of charge at a cost of $ 25 USD. These values ​​can change between exchanges so it is a good idea to read the commission policies that each platform has. These commissions serve to maintain the operation and generation of income of the platform.

Another additional point on exchanges is the minimum amount necessary to operate within the platform. In the case of Coinbase, the minimum amount is 0,001 BTC, 0,01 BCH, 0,01 ETH or 0,1 LTC. That would leave the minimum amount at about $ 7 to be able to operate within the platform using as an option Litecoin.

These operating limits exist to avoid operating with very small quantities. This avoids generating many small operations, which would not obtain any real economic benefit for the parties.

Cryptocurrency brokers

Cryptocurrency brokers are spaces that allow users to quickly exchange their cryptocurrencies for others of their choice. They are more focused on offering an exchange that allows the user to access a certain cryptocurrency. Due to this, they are built in a very simple way in order to facilitate their use to the newer users. An example of this type of services is Shapeshift, Changelly and Bit2Me.

OTC (Over-The-Counter) Platforms

OTC platforms are another way in which we can appreciate cryptocurrency exchanges. These platforms bear a great resemblance to traditional OTC platforms. That is to say, offer peer-to-peer exchanges between buyers and sellers. This guarantees direct negotiation between the parties. They also guarantee a high level of privacy and the ability to negotiate a price for assets outside the market. In Bit2Me we have Bit2Me OTC, an OTC platform that you can easily access.

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Cryptocurrency funds

The funds are initiatives for the management of investments in cryptocurrencies, managed by professionals, that allow buying access to cryptocurrencies through the fund. The positive thing about this type of funds is that a user can buy or sell cryptocurrencies in a very simple way. All this without the user having the need to store or buy them properly. Actually buying or selling is a simple negotiation of a part or share of the cryptocurrency investment portfolio of said fund.

The negative aspects of this system are that they lack privacy on the one hand, and on the other hand, its management. And it is that the funds are not under your control, so in case of theft or mismanagement you may lose them forever. Furthermore, those who manage them are not always experienced professionals.

Decentralized type cryptocurrency exchange

The Decentralized exchanges or DEX they are a direct evolution of traditional exchanges. They operate in much the same ways as the latter, but have the ability to operate in a decentralized manner. This means that there are no intermediaries and the platform is self-supporting due to its programming. In addition to this, DEXs often have high levels of privacy and even anonymity.

Decentralized exchanges became a reality thanks to the appearance of DApps and the ability to decentralize and program advanced computational functions thanks to the use of smart contracts. At Bit2Me, we have Bit2Me DEX a decentralized exchange platform that works thanks to the power of 0x y Ethereum and that allows to make exchanges of the type atomic swap.

Other decentralized cryptocurrency exchanges that are gaining prominence are Balancer, Curves, AAVE y Uniswap, all of them emerged in the middle of the known DeFi boom.

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