INTRODUCTION OF EXCHANGE PLATFORMS
You may want to trade cryptocurrencies (with other cryptocurrencies or with fiat currency) cryptocurrency exchange lowest fees. There are also many different ways to do it; we need to make clear that there is a right way to satisfy every different need. Not understanding this simple thing when dealing with cryptocurrencies can lead to unpleasant inconveniences. a very common mistake. For example, is the function of an exchange platform (or exchange if you prefer). It is to allow the conversion of different cryptocurrencies into other currencies or fiat currency.
In reality
This type of service was created to allow trading and not simply allow you to change your currencies. For example, imagine a lawyer who agrees to be paid in cryptocurrency; since only a few clients decide to pay him this way. The lawyer tends not to spend that money and eventually accumulates a tidy sum at his BTC address.
Our lawyer will want to spend this sum at some point, and perhaps instead of spending his coins as they are. He decides that the time has come to convert them into euros.
What is the most comfortable way to do it?
Well, open an account on one of the largest and most reliable trading platforms on the market and transfer the BTCs to their address. At which point you place a sell order in euros, and that’s it, right? Well, things won’t necessarily turn out to be that simple. The moment our lawyer tries to transfer the sum just converted into euros to his current account. The account could be frozen simply because he didn’t read the compliance policy.
Not all exchanges adhere to this type of protocol. It simply depends on the different rules that different countries apply to manage this type of market. In Italy, for example, opening an exchange requires compliance with very stringent rules and is therefore not a simple (and even less economical) activity. To Start his set of rules (compliance) provides, among other things, the identification of users (which is why today almost all platforms require the sending of user documents). That the funds deposited are used specifically for trading. Our lawyer was wrong in thinking he could exchange his BTC with lowest fees.
Cryptocurrencies are refractory – cryptocurrency exchange lowest fees
The world of cryptocurrencies is refractory to the regulations imposed above. Hence, users (including traders) are forced to sacrifice their privacy to legitimately operate with their coins (since they have to submit their documents to exchange platforms for opening an account.) It’s not exactly one of the most popular norms within the community; at a certain point, users on social networks, forums, and blogs began to tell each other that building a decentralized exchange would not be a bad idea.
A recent innovation has also made this even easier to achieve, known as the “atomic swap,”. Which allows users to use a smart contract to process an exchange of currencies between coins belonging to different chains. In this cryptocurrency exchange lowest fees, the smart contract essentially acts as a real escrow (thus protecting both parties involved,). Make sure to send the coins to the relevant valid addresses. Let’s imagine that a user wants to buy ETH using their BTC. A smart contract will take its BTC, and will search for one or more users capable of satisfying the request at a price set by the user. And as soon as this is possible, it will self-execute by paying the respective parts to the addresses that each of them will have previously established.
[ccpw id=”631″]FAQ
What else is an exchange platform but an updated register of all the exchanges made?
Exactly the type of data that can be processed through a blockchain, as long as there is a decentralized network of nodes that guarantees its functioning. At this point anyone can guess why at this very moment on the market there are at least a dozen platforms (with related native cryptocurrencies in tow) that offer exactly this service; users can transfer their coins to these platforms and do their own trading (or just simply change their coins) just like they currently do with large centralized exchanges. Where is the difference? That in this way they can do it anonymously and, in many cases, without paying commissions for every operation they make.
TOP 6 BEST Crypto Exchanges in 2022!! Ultimate Review!! 💯
