A crypto exchange is an online platform where you can buy and sell cryptocurrencies. Crypto exchanges are like stock markets for cryptocurrency, as users trade digital currencies on this medium.
There are various means of crypto exchanges. Some well-known ones include Coinbase, Kraken and Coinmama for buying cryptocurrencies with fiat money (i.e., government-backed currencies like the US dollar), crypto exchange Singapore.
Crypto exchanges can be classified into three types: fiat-to-cryptocurrency, cryptocurrency-to-cryptocurrency and crypto/fiat currency exchange. There’s even a fourth type of exchange called decentralized exchange (DEX), where traders never have to hold their cryptos through the platform.
Fiat-to-cryptocurrency:
These exchanges allow users to trade cryptocurrencies for fiat money (i.e., government-backed currencies like the US dollar) and vice versa. Some popular ones include Coinbase, Kraken, and Coinmama, which many crypto investors use in various countries worldwide.
Cryptocurrency-to-cryptocurrency:
These exchanges permit people to buy cryptocurrency with other types of cryptocurrencies, such as BTC or ETH. Binance is a popular example of this type of exchange that sees a lot of volume on most days due to its low fees and ease of use even for novice traders who recently got into crypto investing.
Crypto/Fiat currency:
Lastly, there’s also the crypto/fiat currency exchange where users can trade one type of cryptocurrency for another (e.g., BTC/ETH) and vice versa (i.e., ETH/BTC).
Crypto exchanges are like stock markets for cryptocurrencies, as they allow you to trade these digital assets in real-time with other people on the platform itself or anyone around the world who has internet access.
