Definition of an exchange
The Journal du Net defines an “exchange” as a crypto-currency exchange platform that allows cryptocurrencies to be exchanged with each other, converted into fiduciary currency or exchanged for a currency issued by a central bank.
A distinction is made between centralized and decentralized exchanges.
The platform connects buyers and sellers by charging a transaction fee.
Assets are traded in pairs, for example:
– The BTC/USD pair is where Bitcoin is traded against for dollars,
– The BTC/EUR pair is where Bitcoin is traded against Euros,
– The ETH/BTC pair is where Ethereum is traded against Bitcoin.
The different exchanges
Here is a list of exchange platforms: – Coinbase, – Kraken, – eToro, – Binance, – FTX, – KuCoin.
How to choose an exchange?
There are several variables to take into account when choosing a trading platform, such as :
– Number of pairs available,
– Number of cryptocurrencies available.