TMCnet Feature
July 05, 2022

Crypto Exchange Functionality & Technological Use cases



Introduction

Cryptocurrencies are decentralized digital assets that do not rely on a centralized banking system or a government to transact. As a result of the numerous advantages that come along with owning and selling it, it has quickly become one of the most sought-after businesses in the world today.



Advantages such as simple transactions, safekeeping of cash, uncomplicated access, lucrative returns on investments, and the ability to conduct private business, amongst others, are some reasons why it has become the bride of so many people nowadays.

It is essential for anyone who is interested in trading cryptocurrencies to educate themselves on the features that are offered by the various exchange platforms with which they choose to work with. This is important due to the fact that such platforms decide what happens to their cryptocurrencies.

Therefore, having a poor understanding of the functionalities of the platforms might result in the improper handling of cryptos, which can then result in financial loss. Reading this tutorial will go a long way toward assisting all potential users of cryptocurrency in becoming familiar with the various terminologies and capabilities offered by both centralized and decentralized businesses.

Store crypto both online and offline

Wallets are used to store cryptocurrencies and are secured by a digital ledger, the same way you keep cash in a physical wallet, but online. These digital wallets can be web-based applications or hardware. It houses each crypto with its own private address.

Is it safe to use these digital wallets?

The answer to the question depends solely on the user. Each wallet has a set of private keys that the owner must use in order to access their assets. Once these keys are misplaced, lost, or forgotten, the user will never be able to access their cryptos again.

Send cryptocurrencies cross borders

What was previously only done through high-fee services like Western Union (News - Alert), cross-border transactions can be done with ease thanks to finetuned exchange mechanism.

 This is one of the most common activities on any crypto trading platform. By this, we mean the act of transferring crypto assets from one wallet to the other. There are many ways users can send cryptos from their account to other users either on the same platform or to another wallet.

The general way of sending an asset is to withdraw the asset into a deposit address provided by the recipient. Meanwhile, some platforms can make do with email or phone numbers associated with the accounts as the wallet address. Whichever way, the addresses must be double-checked to avoid sending assets to untraceable destinations.

Buy Digital Currencies

To buy crypto mean to exchange a crypto asset with money. There are so many ways to achieve this, but the most common is to visit the peer-to-peer section available on some exchange platforms. In this section, you will see adverts for people who are willing to transact their assets for money. There are different payment methods in such a P2P section, but you can filter it to the one you are willing to pay with.

Some Payment methods you can use:

  • Bank Transfer
  • Skrill
  • Credit cards
  • E-wallets

Find New Projects

Due to this new technology, more companies strive to make it big in the cryptocurrency space, and every day, a slew of new coins enter the cryptocurrency market. Some sites categorize their coins as “New," "Gainer," "Loser," and so on, to make it easier to find these new coins.

As a result, it will be simple to identify the new coins on such platforms. Another option to uncover new coins is to conduct a search on your own utilizing search engines. There's a list of the most recent coins available, complete with release dates, as well as a tutorial on how to find new projects on Tradingbrowser.com.

Convert/Sell Crypto to Fiat

This terminology means to change your coin to government-backed money, so you can withdraw to a bank. To convert to Fiat, once you are on your account on the exchange platform, go to your fiat account, select the transfer button to start a withdrawal then set up the bank you wish to withdraw to and confirm your request.

This feature was previously not available but developers and business owners noticed a high demand to exchange digital currencies for national currencies so the gate-way from crypto to fiat was built.

Short Sell Cryptocurrencies

Technology has come far during the past couple of years and during each crypto winter, the option to speculate on falling prices is something that developers are well aware of. One of the things that traders are doing on the many cryptocurrency trading platforms is this. It implies selling at a higher rate while you wait to buy cryptocurrencies at a rate that is significantly lower. This is done by traders on those platforms in an effort to increase their profits.

The matching engines or the tech behind this is rather complicated by it is all done in an automatic way to give retail investors a smooth and seamless experience.

Security Features

These are the measures put in place by various Crypto exchange platforms to secure the data of users on their platforms. It is the most important feature of the platforms because, without security, the platforms will be unsafe for trading and investments.

Some security measures you will find through reputable vendors are:

  • User identity verification: This is being done by almost all crypto exchange platforms to prevent intruders from penetrating the data on their platforms.
  • Verification of email and phone numbers|: Also, this is made a compulsory requirement on the platforms to make sure all users are real people and not robots.

Customer Support

All customers do love it when they can get the desired satisfaction they seek while patronizing a business. It is important to note that such satisfaction can only come when there is an avenue for feedback. This is why customer support services are very key if a business wishes to get retain its customers and get more referrals. Most crypto services cannot afford to joke with this feature because most of the activities on their platforms deal with the swapping of currencies that come with many challenges.

You may gain access to this support by going to the help session of any exchange platform that you choose. In that section, you will find information on how to get in touch with them in the event that you have any questions, inquiries, or problems.



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