Everything you need to know about cryptocurrency exchanges. It is an online platform and most common way to trade cryptocurrencies.
This includes buying/selling cryptocurrencies with fiat (fiat/crypto paring) as well as buying/selling cryptocurrencies with other cryptocurrencies (crypto/crypto pairing). They can be viewed as an online marketplace for the entire cryptocurrency network.
To be centralized means to trust somebody else to handle your money. In the past, the word “centralized” was a given for all institutions that managed finances.To be centralized means that there is a trusted middleman to handle whatever asset may be in a trade.
In a bank, for example, a customer gives their money over to the bank to hold for them. This one institution is now in complete control of the customer’s money.In many cases, this is much safer than a person finding some way to manage themselves.
Banks have many securities and a team to watch over their customers’ money. The bank can also offer a variety of services, such as loans, because the bank has a large amount of money and has created a trust relationship with the customer. Read more from cointelegraph.com…
thumbnail courtesy of cointelegraph.com