Thread by @zignaly

(1/9) #Cryptocurrency #Exchanges enable trading coins for other #digital and conventional money. But how do they work?
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(2/9) It's possible to purchase and sell a wide range of available #digitalcurrencies by signing up for an account on #cryptoexchanges. #Cryptocurrency exchanges are available 24 hours a day, seven days/week, unlike traditional exchanges, which have specific trading hours.♾️🏛️

(3/9) On cryptocurrency exchanges, #crypto can be converted into ordinary currency, held in your projections of #futuretrades, or withdrawn in cash, depending on whatever you prefer. 💵🔥

(4/9) Compared to typical #marketplaces, cryptocurrency traders have exposure to #decentralized exchanges, which provide significant advantages over their central equivalents. They can complete #transactions without the need for an intermediary on decentralized #exchanges.⚡🚀

(5/9) #Ethereum and other prominent blockchains are used to build #DEXs, which allow users to retain control over their assets while benefiting from the anonymity of #blockchaintechnology.⛓🔒

(6/9) There are several advantages to using a centralized exchange over a #decentralized exchange, such as a better range of alternatives and more #liquidity; there are also disadvantages, such as #smartcontracts or #creditrisk.🌊🙌

(7/9) The #volatility in #cryptocurrencies necessitates careful consideration of a wide range of variables while picking a business, e.g. limits on deposits and withdrawals, fees, credit/debit card options, regulatory restrictions, reputation, and verification requirements.💳💵

(8/9) ⚡Market depth is a concept used to describe how many users an #exchange has, and is measured by its #volume. Market makers are those who place purchase and sell orders on exchanges. Applicants in the market are those who take orders that have already been placed. ⚡

(9/9) Depending on your taste and #research, you can consider additional #elements such as customer support, the platform’s mobile app, and how easy it is to utilize crypto exchanges.⚡💥🚀