Exchange - what is it?

Cryptocurrency exchange (Exchange) - transactions in which digital coins are converted from one type to another.

Cryptocurrencies relatively recently appeared on the financial market as part of a fundamentally new system. However, they are already in very high demand, and accordingly, transactions with them are commonplace for many investors, traders, and miners. A newcomer who is still inexperienced in cryptocurrency will have to figure out how cryptocurrency exchange is carried out and what is required for this.

Crypto exchange rules

To exchange Bitcoin for another type of digital coin, you must use:

  • cryptocurrency wallet;
  • cryptocurrency exchange;
  • crypto exchanger.

The first option is only available if the cryptocurrency wallet system supports both selected currencies. If this option needs to be included, then there are only 2 other methods to choose from.

Exchanging through a cryptocurrency exchange has higher associated costs and only sometimes provides the expected results. Currency exchangers are in higher demand, as they provide optimal commission and high transaction speed.

For any transaction to be valid, you will need a Bitcoin or other cryptocurrency address, that is, roughly speaking, the user’s cryptocurrency account number and a unique key with which the transaction will be confirmed.