Crypto Exchange platforms:
Cryptocurrency platforms are digital forums. Where different crippled currencies can be exchanged for other digital currencies or currencies (Fiat currency can be defined as, money officially controlled by the government of different countries such as US dollars, euros, etc. ). These Cryptocurrency exchange platforms act as a broker to play an intermediary role between different sellers and buyers of different digital platforms and trust currency platforms can really be categorized into two (2) types as mentioned below,
Central Crypto Currency Exchange Platforms Decentralized Crypto Currency Platforms Centralized Crypto Currency Exchange:
Centralized platforms operate according to the same concept with ordinary exchanges. There are three steps performed by three players to complete a transaction on such platforms. These three players can be classified as buyer (creator), seller (taker). In this technique, buyers or manufacturers set a price (offer) to buy a particular currency, whereas the seller (manufacturer) also sets a price to sell their digital currency. Finally, the critical role of exchange begins, the software matches buyers and selling prices to find the right match. After finding a demanding match, the transaction was completed. Another exchange platform imposes different fees to find the right match.
Centralized cryptocurrency platforms are considered to be easy to use, especially for beginners. If you are interested in digital currency trading through centralized platforms. You must first sign up for any software to open an account. After meeting the confirmation requirements of the exchange, your account will be opened. Now you need to transfer money to your account using resources from your digital money platform. Funds can be transferred to your account by bank, debit or credit card, payment order or via PayPal etc. It depends on your chosen digital way. In the same way, users can withdraw funds when needed.
Platforms for decentralized cryptocurrency exchanges:
Decentralized cryptocurrency exchange software does not have the role of a central authority to complete the transaction. Intermediary trading in cryptocurrencies without an intermediate role can be enjoyed through decentralized exchange platforms. There are some advantages and disadvantages to using decentralized cryptocurrency platforms.
Because these platforms allow direct trade between recipient and creator, you do not have to hand over your money to complete a transaction. It reduces the chance of hacking, market manipulation, and of course you do not have to pay the fee for each transaction. In direct trade, there is also an opportunity to get better prices for buyers and sellers. If you are in a country that does not allow digital currency trading, you may have decentralized exchanges as the only option for trading digital currencies because decentralized software does not require as much information as centralized to open an account.
In these platforms to execute a transaction, both buyers and sellers must fulfill their roles. So you have to trust each other. And it can always be a scam because someone from a buyer or seller may not be fulfilling their role in completing the transaction. In decentralized, you can feel powerless in case of fraud, as it is the minimal role of exchange compared to centralized exchanges. Most decentralized platforms are not able to maintain liquidity and trading volume; can therefore not maintain the level of interest to users. Decentralized exchanges are the first choice for some traders, but not for beginners from our point of view.
Costs for Crypto Exchange platforms:
Payments or fees to a cryptocurrency bank depend on the method of financial transfer chosen by you. The fee may be higher when transferring funds via PayPal, debit or credit card compared to funds transferred via a banking project. An increasing risk of repayment may increase the fee for each transaction. Payment via PayPal, debit or credit card can be reversed by the user, which increases the chance of a refund and becomes a reason for higher costs through the exchange.
At the same time, the costs of the transaction also depend on the size/volume of each completed transaction. The third and most obvious factor is the exchange itself. Each digital bank has its own rules and fee fee rules.