Internet is an important market for products and services, where transactions occur in a daily basis. Cryptocurrencies are digital coins, used in transactions in the internet. Cryptocurrency exchange platforms (or cryptocurrency trading platforms) are places where you can exchange your cryptocurrencies for other currencies available.
A few years ago, when we talked about commercial operations in the network, the subject was practically summarized to the actions of buying, selling and paying for products and services in diverse websites like stores and banks. But since 2009, it all changed. It happens precisely because of the emergence of digital coins such as bitcoin.
Before, commercial operations in the online world used the currencies of the physical world as Real, Euro and Pounds. Now the internet has its own currencies. It means that the incredible universe of the web has expanded its possibilities of action and started to rely on specific rules when the game involves financial markets.
To be more specific on this subject, we decided to go deeper into it in this article.
Cryptocurrencies: The Money of the Digital Age
As we have said before, a cryptocurrency is nothing more than a currency that is created to circulate on the world wide web.
In fact, it emerged and continues to emerge every day on the internet itself and serves to conduct business transactions digitally worldwide. Exactly because the currency appears in the network, which does not have a physical address, no central bank from anywhere in the world has control over it.
That is, a cryptocurrency is a kind of global money that has the same value in all parts of the world. Although it does not exist physically as the Dollar or the Euro, people use digital coin units, in various parts of the world, for buying and selling products and services.
Now, if you are curious how these coins appear and what is a cryptocurrency exchange platform, keep reading the article to know everything about it.
How to obtain cryptocurrencies
There are three main ways to get bitcoins.
The process of cryptocoins creation is mining. It is time-consuming and involves supercomputers (which means a high investment in hardware and energy) that solve complex mathematical problems. Cryptocurrencies arise as a result of solving these problems.
- Remuneration for services
Cryptocurrency can also serve as remuneration for some online services or products selling just like regular currencies. Being paid in cryptocurrencies is a way of having it.
- Direct buy
The most common way to get cryptocurrency is through direct purchase on cryptocurrencies trading platforms.
But what are cryptocurrency trading platforms?
Cryptocurrency trading platforms are online currency exchange houses and are some are exclusively used to carry out cryptocurrency transactions.
Basically, you can use platforms with the digital currency you want to exchange for the equivalent amount of other digital coin. In other words, you use, for instance, one digital coin as base, as bitcoin, to buy units of other cryptocurrency, as Dash. The opposite can also happen, that is, it is possible to exchange Dash for bitcoin.
As well as the financial market for physical currencies, the trading platforms of cryptocurrencies have well-defined characteristics. Those who wish to enter this area should be well informed about them in order to act in the best way possible. this will allow them to avoid losses and maximize gains.
What features can I find in a cryptocurrency exchange platform?
The most basic feature that almost all cryptocurency exchange platforms have is the “Exchange” part where you normally can place:
- Buy orders
- Sell orders
- Stop limit orders
Most of the platforms also allow you to leverage your investment by using margin, borrowing money from users or from the system. Beyond those features there are more advanced features that you can explore, depending on platform.
What cryptocurrency platforms users must remember?
Platforms can be used worldwide and non stop
As we have already said, a digital currency is a kind of universal currency that has validity worldwide. This means that what is valid in Japan also applies to the Caribbean, France, and Chile. There is no local government that controls the issue and the real value of the digital currency. Everything happens on the internet and everyone, no matter what city they are in, can attend at any time. The fact that there is no time to start or end is another important aspect of these platforms.
Traded tokens volatility
One of the main characteristics of cryptocurrency trading platforms is the volatility of the products traded on it. That is, changes in cryptocurrencies values are constant and sometimes, on the same day, a significant variation can occur. High volatility makes the cryptocurrency trade an area that presents challenges and requires knowledge. This means that the chances of loss are real almost in the same proportion as the chances of gain. So, the persons who participate have to put a limit on how much they can invest. In other words, the user from cryptocurrency trading platforms must invest with awareness: use a value that is available for risk, and do it after a market analysis. And, of course, you also need to know when to stop so you will not increase your losses and make future holdings unfeasible.
Now you know more about cryptocoins, and about the platforms where the financial transactions, that involve these digital coins, take place. Now you’re ready to know the perfect cryptocurrency exchange platform: Trade by Trade.
The views provided in this blog are purely informative and may reflect some author own views and opinions. Those refelect a given time and market situation. This is not investment advice. Investing is your own risk and should be done after your own market analysis.