Last updated on July 17th, 2020 at 08:23 pm
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WHAT IS A CRYPTOCURRENCY EXCHANGE:
Hi Friends. Welcome Back. It’s been over two weeks since our last session on Cryptocurrency Tutorial. I guess it’s better. So now. I hope we all are familiar enough with this.
So today eemm. Guess what…? ? We are going boom! into Cryptocurrency Exchanges, alright. So now. Like we said the other time.
Cryptocurrency is the sofcopy of money while Fiat is the hard copy.
In Cryptocurrency, securities can be bought and this currencies can be traded. Though cryptocurrency is yet to be termed a security because.
Securities are those valueables that are controllable and involves a third party.
But cryptocurrency involves no third party and it can not be controlled. It’s Decentralized. Though Ripple is said to deserve the term securities. Now, let’s see these exchanges where we can trade Cryptocurrency.
Basically we have two different types of cryptocurrency exchanges. These includes; Centralized and Decentralized Exchanges.
Now Centralized Exchanges are controlled by third party while Decentralized Exchanges are not. You understand that? When we say controlled, we mean that someone has the sole power to alter its operations. How is that…? ?
So it means that if Bobby gives you biscuit to eat now. I might come again and say Papi pls give it back. I don’t want you to eat it. ? So now in Decentralised where it’s not controlled.
The same Bobby will give Papi biscuit now. He will come again to collect it but now. He can’t collect it again. Maybe Papi it’s older than him ?. But the point here is that Bobby can’t collect it back.
It’s impossible! Once he gives it out to Papi. Papi collects with no return. Only if Papi decides to give back. But would Papi decide to give out when he doesn’t even know Bobby…? Hello! are you following?
Yes. He doesn’t even know who’s Bobby. So nothing could be done. He can’t identify him. No way. That is the sweet part of Blockchain Technology on which cryptocurrency was built. I love this ?.
Cryptocurrency Transactions Is A Transaction of No Return!
In decentralised exchanges. You can never identify me nor my account. I will be trading peacefully and happily. Everything that am doing on the exchange remains anonymous.
It gives me full right to privacy and my identity is fully secured. But Centralized Exchanges will require my passport and ID Card to get me on track with my trading.
You see now. Every transaction that I make on the exchange will be traced to me. I can’t hide. Isn’t that annoying? So we can equally say that ;
Dentralised Exchanges involves Anonymous Cryptocurrency Trading while Centralized Exchanges does not involves anonymous Cryptocurrency Trading.
So now, I hope you have understood the rudiments there. That’s it. Now we can see different Cryptocurrency Exchanges. Each of these Exchanges has different ways it’s user interface is. Which we will be discussing soon.
Decentralised Exchanges Includes:
Centralized Exchanges Includes;
This exchanges are the top three among it’s categories. So now. You have seen what they are. Next Tutorial We will Talk About How To use them. And how to open different major cryptocurrency wallets.
But before we close. We would like to tell you that Cryptocurrency boom! Is eminent or too far. Use the knowledge you have now wisely before it gets clustered! When it’s clustered is when the government regulations comes in.
Then you might end up not being able to trade because of Tax and many other regulations coming in that you might not be able to afford now. Use it wisely and be among the few in the future!
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