With all the advantages of bitcoin, its basic wallets have a significant drawback - they only allow you to work with bitcoin. Bitcoin Core, Electrum and other wallets are not capable of exchanging it for other digital currencies, converting it into dollars, rubles or some other currency.
And as soon as the price and turnover of the cryptocurrency market reached billions in dollar terms, hundreds of exchange exchanges appeared. On them, people buy digital currency using bank accounts and electronic payment systems, trade in various altcoins (alternatives to bitcoin), turn them into fiat money (the money we are used to, issued by states - rubles, dollars, euros, etc.).
Organization of a cryptocurrency exchange
Crypto exchange as an information product consists of computer hardware and software. The software shell registers the user and creates an account where he replenishes his digital and fiat accounts or withdraws money, places orders to buy and sell. Many exchanges provide additional features - chat, news feed, rate analytics, etc.
The hardware part is represented by servers on which operations are performed and data about users, their accounts, transactions carried out by them are stored.
The work of exchanges is built primarily on trust, so it is not worth transferring large amounts to new exchanges, even if they have useful functions and options. It is better to start with a small amount, and only when you are sure that the project is serious, make big deals there.
Keeping cryptocurrency on the stock exchange is not worth it, keep only what you intend to trade on your accounts, while the rest is better to withdraw to your address - it is advisable to transfer large amounts to cold storage.
I hope that this article will help you choose best crypto exchange and increase your knowledge in the field of cryptocurrency.