Cryptocurrency exchanges are the most important part of this large market. In this short article, we have tried to explain briefly how Cryptocurrency exchanges work and work without additional details.
How Do Cryptocurrency Exchanges Work?
Cryptocurrency exchanges are a virtual place to buy and sell Cryptocurrencies.
The price and price of Cryptocurrency are obtained by the same supply and demand in the Cryptocurrency exchange market. Obviously, the higher the demand for a currency, the higher the price, and vice versa. Of course, other artificial factors can also affect prices.
Cryptocurrency exchanges can vary in features and performance. In most cases, Cryptocurrency exchanges are an intermediary for buyers and sellers. Their function is that the money exchange performs the task of placing buy and sell orders between users and receives a commission on every transaction made. These currencies exchange wallets for supported currencies on their site so that the user can exchange various Cryptocurrencies or store them for future transactions.
There is another type of Cryptocurrency exchange that users trade with site owners. These exchanges are often local and serve users of a particular country or region.
What are the Cryptocurrency trading pairs?
Cryptocurrency trading pairs allow you to profit from currency changes.
The structure of a currency pair is as follows:
Second CryptoCurrency / First CryptoCurrency
Keep in mind that the currency and positions of a currency pair are always important. For example, if you expect bitcoin to rise against the dollar, you should buy the BTC / USD pair as the bitcoin is on the left and the dollar on the right, and if you plan to sell bitcoin Be the opposite of it should be.
Some popular Cryptocurrency exchanges do not offer currency pair trading and are limited to Cryptocurrency trading only. Most currency pairs are BTC / LTC or LTC / BTC and ETH / BTC or BTC / ETH Cryptocurrency exchanges.
Why do prices differ slightly in Cryptocurrency exchanges?
Because Cryptocurrency exchanges operate separately, prices are different from supply and demand, and sales of each currency are traded, and global prices are the same for different currencies. Of course, the price difference in the exchange rate is negligible because if there is a high price difference, many traders will move to the exchange for-profit and the price will rebalance.
As mentioned above, in any currency, bitcoin prices and Cryptocurrencies are calculated based on the volume of transactions, supply, and demand. This means that the bigger the currency exchange, the more reasonable and realistic the price will be compared to the world price.
For Bitcoin and other Cryptocurrencies similar to that fixed price is meaningless and can change at any moment.
Can I benefit from the price difference in different currency exchanges?
As we said, the price difference in Cryptocurrency exchanges is very small. So you need to invest very high capital to make a very small profit, which at a moment’s price change can put you at a great disadvantage.
Bitcoin prices in different currency exchanges are no more than 1-2%. However, sometimes due to technical problems, the price difference in a currency exchange can be greatly exacerbated, in which case currency managers will suspend it and exclude the possibility of withdrawal.
It should also consider commissions and transaction fees of a currency exchange, which is a great risk to do so.
Generally speaking, in the context of making money from different currency exchanges, very sensitive situations are needed which often are not provided.
I want to start Cryptocurrency trading, where to start?
First of all, you need to buy some Cryptocurrency that is usually bitcoin or Ethereum. Due to the sanctions and problems with shopping with MasterCard and Visa accounts on the Expay-24.com website. Try to calculate the expense before buying bitcoin or other Cryptocurrencies and buy from the fairest fee.
After purchasing some Cryptocurrency you need to sign up for an international currency exchange site like Binance and deposit your purchased Cryptocurrency into your account. You can then refer to the exchange market price and enter its trading page by selecting a currency pair (such as BTC / ETH).
What is a StopLimit Order?
This is possible on professional trading sites for Cryptocurrency trading. With this feature, you can specify that when a Cryptocurrency has reached X value, it will automatically buy or sell order with Y value.
Purchase Order Stop Limit
For example, suppose you are an analyst and predict that if a currency crosses the 20$ resistance line, it will rise to 60$. So you can create a stop-loss order with this feature so you don’t miss a trade.
Under this deal, if the asset price reaches $ 21 or higher, a purchase order of $ 22 will be recorded for you.
Stop Limit Sell Order
For sale, you set the sales order at Y if the price of an asset reaches X. This can prevent you from losing more in the downstream markets and help you in the upstream markets to sell and earn profit at the right time.
For example, you have bought a Cryptocurrency and you expect it to rise to 100$ and then the market will go down so you can place a stopover order like this:
Under this deal, if the price of the asset reaches $ 97 or higher, you will receive a sale order of $ 98.