Bitcoin Exchange: Meaning, Use, & Purpose(Explained)

• 25 May, 2022
• 773

Everything that we buy & sell has its own market. The same way Bitcoin or Cryptocurrency also has its own dedicated market where many types of Cryptocurrencies are sold and bought using fiat currency, BTC, or altcoin. And this market is known as Bitcoin exchange. But, the BTC market is something different in many ways from a regular market where we sell or buy other products. For in-depth information, we recommend you to have a free consultation with experts available at the contact center.  

However, to know the answer to some frequently asked questions about the Bitcoin Exchange platform and how it works, you can stay on this webpage. In the upcoming sections, we will discuss the various aspects of the BTC trading & exchanging market.

What does the Bitcoin Exchange rate mean?

As you know that different countries have different currencies which have different values. And when it comes to exchanging two different currencies, you will need to find the exchange rate. For example, as of now $1 is equal to 3.67 United Arab Emirates Dirham. So, the exchange rate would be 3.67, meaning it takes 3.67 USD to buy 1 UAE Dirham.

Similarly, when it comes to trading in the Cryptocurrency exchange rate is counted. It is worth noting that dissimilarities in value are not only limited to the fiat currencies. Different Cryptocurrencies hold different rates. For example, if you want to buy 1 BTC using BCH (Bitcoin Cash), the exchange rate would be 30.56 because 1 BTC is equal to 30.56 BCH as of now. Moreover, one may need to pay 692.46 Bitcoin Gold to buy 1 BTC or 7,164.07 USD or 6591.09 Euro. You also can use other forms of currencies like Ethereum, Litecoin, Stellar, and so on. Always remember that the rate of any currency is dynamic. It always fluctuates including the Cryptocurrencies. 

Read More: How to sell BTC for PayPal?

How does BTC Exchange work?

You will be amazed to know that there are many online Bitcoin exchange platforms available. Not only the sites but mobile apps are also available in a few numbers. Different Crypto exchangers may have their own unique procedures. But, most of them follow a quite common way which I have mentioned below.

• BTC trading starts with funding your account. Suppose, you have created an account on Binance which is a reputable platform for exchanging BTC & other forms of Cryptocurrencies. Now what kind of trading you will be able to do depends upon what kind of money you deposit to your account. For example, if you have deposited Ethereum in your account, you will be able to do trading with only Ethereum on Binance.
• The next step is to choose a pair. Every exchange platform offers a pair of coins that you can exchange. In our example we have Ethereum, we will have to find out what other Cryptocurrencies are available to exchange with Ethereum. Select the available option from the list.
• Now you need to choose a type of trade. Binance offers three types of trades. A limit order, Market order, and Stop-limit order.
• The limit order lets the users set the maximum and minimum price for coins. On the other hand, Market order lets the users buy & sell coins at their market price. And stop-limit order enables the users to buy or sell coins once it has reached a certain price.
• If everything looks fine to you, all you have to do is just enter the amount or quantity that you want to buy or sell & follow the simple step by step instruction.

Bitcoin Exchange of New York: Which one can I use?

If you are thinking of trading with a Bitcoin exchange in USD, you are in luck. Why? Because you have so many options. You can choose Coinbase which is among the most reputable exchanges in the USA. Moreover, you can go with Gemini, Bitstamp, LocalBitcoins or Binance. 

 Also Read: How to buy bitcoin with PayPal?

Final Words

That was all for today. After reading our tutorial: Bitcoin Exchange-Meaning, Use, & Purpose you must have learned something new. If any doubt has left in your mind or for more information about the best Bitcoin exchange sites, wallets and apps, feel free to reach us.