WHAT ARE CRYPTO EXCHANGES?
If you’re just starting out on your journey to becoming a crypto investor you’ll need to join a crypto exchange and learn how to use it. A crypto exchange is where you buy and sell crypto assets.
So what are crypto exchanges?
If you’re just starting out on your journey to becoming a crypto investor you’ll need to join a crypto exchange and learn how to use it.
A crypto exchange is where you buy and sell crypto assets. There are lots of exchanges around the world, and it’s fair to say that the quality varies!
All exchanges are slightly different, but there are 3 main types of exchange.
- Fiat Exchanges. In crypto, you’ll hear the word Fiat used a lot. Fiat means government issued currency like US dollars or the Euro. A fiat exchange means you can buy crypto using fiat. The way it works is you deposit money from your bank account to your account on the exchange. Then you can buy crypto with your fiat and sell your crypto back to fiat. The exchange will provide an exchange rate and you’ll be charged a small fee on every transaction.
- Crypto Exchanges. A crypto exchange lets you exchange crypto assets for other crypto assets. You need to already have crypto, and then you send your crypto from your wallet to your exchange account wallet.
- Decentralised Exchanges. Decentralised Exchanges are a new kind of exchange that embrace the dencentralised ethos of blockchain. In the same way that blockchain removes the need for trusted third parties, Decentralised exchanges do the same thing. A decentralised exchange doesn’t hold customer funds. Instead, trades take place directly between users. This reduces the risk of your crypto or money getting hacked or stolen, because the funds are always held on individual trader’s wallets. It also gives you privacy as you never have to sign up to a decentralised exchange and they don’t hold customer records. Decentralised Exchanges might be big in the future, but for now they’re a lot more technical to use so don’t start with these if you’re a beginner!
Here at Dacxi we think there’s a need for a new category of exchange called a “Community Exchange”. The problem with most exchanges is they can be very intimidating to new people – that’s because they’re designed for experienced traders, and feature complex user interfaces and technical trading tools. Woah! Crypto shouldn’t be this hard!
That’s why we’ve created the Dacxi Community Exchange. A community exchange is an exchange that is simple to use and comes with a community platform that provides new investors with the knowledge, discussion and learning resources they need to engage with crypto assets in a safe and responsible way.
In our next video, we’ll show you how to join the Dacxi Exchange…