In this section we will be focusing on bitcoin and cryptocurrency exchanges.
If you are unfamiliar with the concept, it is a digital marketplace which connects buyers and sellers of cryptocurrencies together. It operates in a very similar manner to a traditional stock market, but there are some major differences.
For example, When you buy a traditional stock, you will be doing so through a broker who will carry out the trade on the stock exchange where all orders are centrally settled. However there is no central market for crypto, each exchange acts as its own marketplace. If you want to buy bitcoin on Coinbase for example, you need to do it on the Coinbase platform, not through a broker.
Unlike the traditional markets which take days off, such as weekends and holidays. Crypto markets operate 24/7, they never stop.
The distributed nature of the crypto exchanges and the fact that they need to actually hold bitcoin for trading means that they are constantly targeted by sophisticated groups of hackers. Even the biggest and the best have experienced losses through hacking.
Crypto exchanges are always changing. The best cryptocurrency exchanges today may be the worst tomorrow. New exchanges can pop up overnight and change the landscape as Binance did and now FTX are doing. New types of products such as futures, options and other types of trading methods are becoming more and more commonplace.
Stay up-to-date with all the changes by reading through our extensive guides, which are constantly improved and updated.