If you’ve been reading about CoinDogg, chances are high that at this point in time you are familiar with cryptocurrency exchanges. But what you might not know is how one works in the back-end. As such, to get you to a level of better understanding here’s everything you need to know about crypto exchanges.
A cryptocurrency exchange is essentially a digital marketplace where traders can buy as well as sell crypto through the usage of different FIAT currencies or altcoins. It acts as the intermediary between buyers as well as sellers of the cryptocurrency.
The platform essentially matches buyers with sellers. This is very similar in the sense of a traditional stock exchange, where traders can opt to buy and sell bitcoin through inputting a market order or a limit order. When a market order is selected, the trader is authorizing the exchange to trade the coins for the best price available, and with a limit order set, the trader directs the exchange to trade coins for a price that is below the current ask, or above the current bid. This is specified if they are selling or buying.
To transact a cryptocurrency on an exchange, the user has to register with the exchange and go through a few verification processes to authenticate their identity. Once this authentication is successful, an account is opened for the user who then has to transfer funds into their account before buying the coins.
Keep in mind that different exchanges …
Story continues on Zycrypto