How Crypto Exchange Platform Works?
Crypto Exchange Platform encourages crypto trading in return for digital assets or traditional currencies.
Crypto trading is booming at an exponential rate, and more and more people are getting eager to participate in the bandwagon. Crypto Exchange Platform in simpler terms enables the investors to buy and sell cryptocurrencies in return for fiat money or other assets. You need to use a crypto exchange platform in order to trade cryptocurrencies as of now due to the lesser traditional investment firms offering crypto.
Cryptocurrency Exchanges software are generally of three types which are, Centralized Exchange, Decentralized Exchange (DEX), and Hybrid Exchange. Besides these exchanges, there are other ways of trading cryptocurrencies like P2P (peer-to-peer) platforms and investing applications for crypto buying and selling.
However, that’s a topic for another day to discuss. First, you need to get familiarized with the meaning of Crypto Exchange Platform and its trading complexities before knowing the working process. There are a few things to keep in mind before landing on a trading platform like selecting the right exchange for trading that will fulfill all your requirements with regards to functioning, transaction fees, and much more.
What is a Crypto Exchange Platform?
Crypto Exchange Platform encourages crypto trading in return for digital assets or traditional currencies. They act as a median between a buyer and seller with a commission charge or transaction fee. UnoCoin, CoinSwitch, CoinDCX, and Kuber are a few examples of operational online exchanges in India.
Besides trading digital currencies for other cryptocurrencies, an investor can exchange them for fiat currencies or traditional money( dollars, euros, or rupees) through an online exchange. They can transfer that amount to their bank account and withdraw them later from their local bank.
How Does It Work?
As already discussed above, crypto exchanges are like brokerage firms that act as a central entity between a buyer and seller during the crypto trading process. It lets the traders transfer their money using various means like debit/credit cards, bank transfer or UPI, etc. Although it charges some amount as a commission fee for every successful transaction with their services.
- First things first, a buyer or an investor needs to choose the right exchange platform for themselves. This process will need research work about that chosen platform like its profile, history, credibility, etc., and things that benefit it will help your trading journey.
- The next step is fairly simple which is trading account registration setup. Go to the selected Crypto Exchange Platform’s website or download their Android/iOS application (if they have any) for account creation. You would need your email address, phone number along with a security password for that purpose.
- After that, you would receive an email verification request to that address and ask for KYC details. Click on that verification email link to complete the KYC process. Set a password and you are ready for trading in the crypto market. Also, make sure to not lose any login credentials like account name or password as it might never get recovered.
You can learn more about various Crypto Exchange Platform types, and their work process from LBM Solutions which is based in Mohali, India. We will help you decide which platform to get started with for crypto trading.