How is it possible for me to sell and buy on binance within seconds if every transaction has to be recorded in a block (and it takes about 10 minutes to validate the next block).
If you are talking about Binance.com exchange its a centralized exchange and not using any blockchain transaction in times of actual trading but if you use Binance.org which is a decentralized exchange as an example transactions takes a little bit longer compared to other one because you have to wait for confirmations to process your orders other examples like forkdelta, idex.. 
Topic: a noob's questions (Read 201 times)
Just remember one important thing.... when you deposit coins or buy coins on these exchanges ....they hold the Private key to those coins. We always say, if you do not have sole control over the Private keys, then you do not own those coins.
Buy the coins and move them to a address that you have the sole control over the Private keys.
A ledger on an exchange is not as secure as the Blockchain and that makes them the weak link in the security of your coins. They use Cold storage to secure coins, but we have seen several instances where Exchanges were hacked and where 1000s of people lost many coins. 
Buy the coins and move them to a address that you have the sole control over the Private keys.
A ledger on an exchange is not as secure as the Blockchain and that makes them the weak link in the security of your coins. They use Cold storage to secure coins, but we have seen several instances where Exchanges were hacked and where 1000s of people lost many coins. 
Theres are a some Exchanges that working on blockchain tech.
They have there one blockchain and it works like the real chain does .
Depends what blockchain algo you will have or use.
But yeah your questions ar answered and normaly it hasnt to do with chain !
They have there one blockchain and it works like the real chain does .
Depends what blockchain algo you will have or use.
But yeah your questions ar answered and normaly it hasnt to do with chain !
Thank you! All answered and clarified.
Well in binance or in any other exchanges you are not actually dealing with the blockchain. You are exchanging data in their own database. Say you are buying and someone is selling to you. Both are recorded in their central database.
Now when you request for a withdrawal or deposit only then you are actually dealing with blockchain or they are dealing with blockchain.
Edit: eoloe you were few seconds faster than me LOL
Well explained by the way.
Now when you request for a withdrawal or deposit only then you are actually dealing with blockchain or they are dealing with blockchain.
Edit: eoloe you were few seconds faster than me LOL
Well explained by the way.
How is it possible for me to sell and buy on binance within seconds if every transaction has to be recorded in a block (and it takes about 10 minutes to validate the next block).
The trades you make on an exchange are not recorded on a block. Centralized exchanges have their own internal ledgers/databases to monitor exchanges made on the exchange. The only things which are recorded in a block are when you deposit or withdraw from the exchange.Think of it like this. I send your department a letter in the post (making a deposit, which is recorded on the blockchain). The staff in your department spend some time drafting a reply, emailing it back and forth to each other, changing and editing it (internal transactions, which don't touch the blockchain). They then print it off their reply and post it to me (making a withdrawal, which is recorded on the blockchain).
How can it be that prices on all exchanges are more or less the same? Let's say, someone sells 100 bitcoin on binance for a price way below the market price. Why doesn't the price on this exchange drop far below the price on other exchanges?
Sometimes it does, but the gap rapidly closes. Very occasionally you will see a "flash crash" on one exchange, triggered by a single large sell off, a series of bots all triggering each other, someone missing out a zero when inputting a price, or something similar. The price can drop markedly, but it rapidly closes as users takes advantage of this lower price. The majority of trading on exchanges is done by other pre-set orders or by bots. They react almost instantly to any big swings in the price.
Hi friends,
I'm trying to learn all about crypto, but can't wrap my head around two things I'm observing:
How is it possible for me to sell and buy on binance within seconds if every transaction has to be recorded in a block (and it takes about 10 minutes to validate the next block).
How can it be that prices on all exchanges are more or less the same? Let's say, someone sells 100 bitcoin on binance for a price way below the market price. Why doesn't the price on this exchange drop far below the price on other exchanges?
Thank you!
I'm trying to learn all about crypto, but can't wrap my head around two things I'm observing:
How is it possible for me to sell and buy on binance within seconds if every transaction has to be recorded in a block (and it takes about 10 minutes to validate the next block).
How can it be that prices on all exchanges are more or less the same? Let's say, someone sells 100 bitcoin on binance for a price way below the market price. Why doesn't the price on this exchange drop far below the price on other exchanges?
Thank you!
Jump to: