Bitcoin Exchange: An Overview
A Bitcoin exchange is a digital platform that enables users to buy, sell, and trade Bitcoin using various currencies or other cryptocurrencies. As one of the foundational components of the cryptocurrency ecosystem, Bitcoin exchanges play a crucial role in facilitating market liquidity, price discovery, and global accessibility to digital assets.
How Bitcoin Exchanges Work
Bitcoin exchanges operate similarly to traditional financial trading platforms, offering order books, market charts, and trading pairs. Users create accounts, deposit funds—either fiat currency such as USD, EUR, or INR, or cryptocurrencies—and execute trades based on real-time market prices. Advanced platforms also provide tools like margin trading, futures contracts, and algorithmic trading options.