What Are Crypto Exchanges And Why Do We Need Them?

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By Crypto Vibe

By now, we have clearly established the fact that cryptocurrency is a form of digital currency. Now it is time to answer the next important question down the road – What are crypto exchanges? For those of you who are stepping into the world of crypto, this information may help you to draw a basic line in your learning process. It is safe to assume that most of you are aware of currency exchanges available across the globe. The job of these exchanges is to convert the given currency to the desired currency. We can apply the same understanding to know what crypto exchanges are. Let’s get started!

What Are Crypto Exchanges

What are Cryptocurrency exchanges?

Crypto exchanges are the platforms specifically designed to manage, store, send, or receive digital currency (crypto) between users across the globe. The nature and functionality of each crypto exchange available on the internet may differ from each other. However, the intended purpose remains the same.

Here, it is important to mention that some of the crypto exchanges are centralized while others may be decentralized. What does that mean? Centralized crypto exchanges act as a third party between a buyer and a seller offering a more reliable experience to both ends. On the flip side, decentralized exchanges do not hold a third-party status and offer a peer-to-peer transaction without involving a company or intermediary.

Why Do We Need Them?

If you want to step into the world of crypto and make exchanges of your bitcoins, you will need to have a crypto exchange. You can compare it to a bank account. Whenever you want to send or save your money safely, you go to the bank or transfer it through online banking. This means that you first need to have a bank account to be able to store, send, or receive your money.

Best Cryptocurrency exchanges

Crypto exchanges play a similarly pivotal role for cryptocurrency holders. To be able to make your transactions, you will need to have a crypto exchange account. While this may be true, it depends on your personal preference which exchange you pick to go with.