A cryptocurrency exchange is a platform where you can trade electronic coins, exchange them for other coins, as well as for fiat money. You need to evaluate the crypto exchange by the number of trades, the number of users. Binance is considered the largest crypto exchange in the modern market.
The key components that a trader needs to consider include the following:
• graphs of the cost of electronic currencies;
• buy/sell orders;
• history of conducted transactions;
• trading volumes that the user has conducted on the crypto exchange.
A chart is a history of the price of one electronic currency relative to another. It is usually displayed in the format of Japanese candlesticks, it clearly shows the dynamics of the spread difference over time.
Buy/sell orders from traders form a glass. This is a list or a table that lists orders from traders to buy/sell currencies. The glass shows the desire of users to trade electronic currency at a certain rate.
An order is called passive if it is placed for execution not at the current rate, but at a certain level. Such orders form a resistance/support indicator. An aggressive order is issued for trading at the current rate.
Benefits of trading crypto exchanges
By deciding to trade on a centralized cryptocurrency exchange, you will provide yourself with the following advantages:
1. High liquidity. On large cryptocurrency exchanges, you can easily exchange one coin for another in any amount. If there is a cryptocurrency pair, you can be sure that you will exchange one coin for another without changing the value. This is especially important for those who own a large amount of coins.
2. Trading pairs, no blockchain framework. Exchange, for example, Ethereum for Bitcoin is quite complicated and inconvenient outside of centralized crypto exchanges. Centralized platforms solve the problem of cross-blockchain transactions, provide a quick exchange of assets.
3. Small commissions. Thanks to this, even owners of a small number of coins can successfully earn money on centralized platforms.
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