Businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies.
Exchanges operate like a brokerage and accept payment through cards or other forms of electronic payment in exchange for cryptocurrencies. It often levies a fee for this process.
Exchanges are able to send digital assets to a consumer’s personal wallet. Other commodities, such as precious metals, including gold back other digital currencies.
There are two types of cryptocurrency exchanges: decentralized and centralized.
Digital currency exchanges have been some of the biggest winners of the surge in cryptocurrencies. Some of the biggest centralized exchanges include Binance, Coinbase and Kraken. The more volume there is on an exchange, the lower the volatility levels will be.
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