Lesson 7 – What Are Cryptocurrency Exchanges?
What Are Cryptocurrency Exchanges?
The stock exchanges we hear about on TV or read about in newspapers – such as the New York Stock Exchange (NYSE) – are marketplaces in which securities are bought and sold. The stock exchange acts as a market where stock buyers connect with stock sellers. Stocks can be traded on one or more of several possible exchanges. One usually trade stocks through a broker who charges fees for every transaction he makes for you.
The cryptocurrency marketplace is similar to the stock exchanges except they are marketplaces in which cryptocurrencies are bought and sold. They act as a market where cryptocurrency buyers connect with cryptocurrency sellers. Cryptocurrencies can be traded on one or more of many possible cryptocurrency exchanges. One very important difference when trading in cryptocurrencies, there is no middleman – like cryptocurrency stockbrokers – who trade for you. You do the buying and selling. Peer-to-peer (P2P) transactions are the very nature of cryptocurrency. No middlemen.
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