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How Does a Cryptocurrency Exchange Work

Cryptocurrency exchanges are services for trading digital currencies and investing in them. Users can buy and sell cryptocurrencies on such platforms and apply various trading strategies with trading tools. There are two types of services:

•    Centralized exchanges (CEX)
•    Decentralized platforms (DEX).

Each cryptocurrency exchange offers its own selection of tradable cryptocurrencies. The WhiteBIT exchange, for example, offers more than 400 cryptocurrency pairs, while Binance supports an even bigger number of trading pairs.

The prices of crypto assets on cryptocurrency exchanges are determined on the basis of historical transactions of these assets and usually correspond to the average market price.

To buy crypto on a centralized cryptocurrency exchange, customers usually have to register and undergo KYC verification. Verification is not required for regular spot transactions but is necessary for other functions, such as buying cryptocurrencies with fiat and trading futures.

Decentralized exchange does not require registration or user verification, so anyone can trade on DEX. However, this means that the DEX is not responsible for users' funds; the DEX is only an intermediary between users who trade cryptocurrencies directly from their wallets. In this case, the responsibility for the funds clearly lies on the user. For this reason, the use of centralized exchanges are safer.

On Which Exchange to Buy Crypto?

Talking about centralized exchanges, we would like to recommend the WhiteBIT platform. It is a reliable and reputable cryptocurrency exchange aimed to provide a high level of quality and safe services for its clients and expand the adoption of crypto assets in the world. The platform operates officially and complies with European jurisdiction. 

To buy cryptocurrency online using a bank card, you should open an account and pass verification. On WhiteBIT, it takes just a couple of days, and if there are no problems, you will access all the platform tools shortly. Then attach your bank card and move the needed amount of dollars, pounds, or euros to your account and use them for buying any digital asset supported by the platform. That’s it.

For more information on how crypto reading works, welcome to the WhiteBIT exchange blog.

Author: Uzair   

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