Understanding Crypto Exchanges
Learn everything you need to know about how you can buy and sell your cryptocurrency through crypto exchanges.
Learn everything you need to know about how you can buy and sell your cryptocurrency through crypto exchanges.
If you are new to cryptocurrency trading or thinking about getting into the market, you must probably wonder how you can buy and sell.
Given that new coins are emerging now and then, it is important to know how you can buy these coins, especially now that the crypto market is worth over one trillion dollars.
Just like your traditional stock markets, there are also platforms that help you in the buying and selling of crypto coins, which are called Crypto Exchanges.
What is a Crypto Exchange?
Just like your stock trading platforms, a crypto exchange is an online trading platform that provides you with the tools to buy and sell crypto coins like Bitcoin, Solana or Ethereum. You can do so by using crypto coins you already own or buying through your fiat currency.
How does a Crypto Exchange work?
Before you can start trading on a crypto exchange, you need to register and get verified on the platform you choose. Afterwards, you can then begin trading. If you are buying, the platform matches you with someone who is willing to buy the coin you are selling, with the price determined by the market.
For example, if you are selling one BTC and there is someone on the same platform looking to buy the same amount of BTC you want to sell at the price the market is offering, the platform pairs you together. Once the seller pays up the price you are selling your 1 BTC, you release the 1 BTC to him for the order to be completed.
Once the order is completed, you have both concluded a successful transaction. This is how trades are conducted on a crypto exchange.
Types of Crypto Exchanges
There are two major types of Crypto Exchanges- Centralized Exchange and Decentralized Exchange.
Centralized Exchange
A centralised exchange acts like a link for traders. It has control over every account and the transaction that takes place. Before a transaction is completed it must be approved by the exchange, meaning the success of each transaction is at the hands of the exchange.
Decentralized Exchange
Decentralized exchanges are the opposite of centralised exchanges. Although these exchanges run on a public distributed ledger infrastructure, traders can conduct transactions without approval from a central authority.
However, the price of a coin is determined by the laws of demand and supply of the market, meaning you cannot fix the price of what you want to sell or buy on the platform.
Advantages of Centralized Exchanges
- Liquidity: It’s easy to conduct transactions faster on centralized exchange because they have more liquidity available and that does not affect the price or cause loss of value.
- Speed: Because centralized exchanges have more liquidity, transactions are concluded as fast as possible even though an authority is in charge.
- Recovery: A trader can recover his/her assets if he/she loses login credentials because most centralized exchanges are able to verify a user’s identity
Disadvantages of Centralized Exchanges
- Hacks: Centralized exchanges are susceptible to hacks due to the amount of trades and data they store on centralized data.
Advantages of Decentralized Exchanges
- Ownership: Unlike centralized exchanges, you control your transactions in decentralized exchanges.
- Security and Privacy: Decentralized exchanges are more secure since there is no need for KYC.
Disadvantages of Decentralized Exchanges
- Low Liquidity
Types of Crypto Exchanges
There are several crypto exchanges but these are some of the popular ones
- Binance
- Coinbase
- Bybit
- Bittrex
- KuCoin
Can I use any of these exchanges to conduct transactions at Housebets?
Yes, you can use any of these exchanges to deposit your preferred crypto to fund your bets at Housebets.com.
How do I deposit to fund my bets at Housebets?
It’s easy and simple as long as you follow the simple steps below:
- Go to Housebets.com
- Log into your account or sign up if you don't have an account
- Click on Wallet
- Click on Deposit
- Click here to view and select your preferred Cryptocurrency
- Choose your preferred Cryptocurrency and network
- Copy the Wallet address or scan the QR code and transfer from your wallet.
- Coins will be deposited automatically after 6 network confirmations.
