it is like trading anything else. people need some place to meet to be able to trade with each other. it is like a bazaar that buyers and sellers meet each other, an exchange is like a modern version of that. they provide a platform where people do the trades and then the exchange takes a fee because they have provided that place/platform for them.
if that platform is decent, with nice features, with high security and no shady business in the background then it will grow and become trusted. but bitcoin and altcoin exchanges are usually not regulated so they never are 100% safe. we can only trust them so much before they betray our trust like they have already did multiple times and ran away or got hacked.
Topic: Bitcoin exchanges (Read 234 times)
An average bitcoin user can buy and sell for major sovereign currencies using online exchanges.so exchanges acts as brokers serving as a platform over which buyers and sellers come together or as dealers. Taking on an inventory of bitcoin to sell to users and profiting from bid-ask spreads. But how can bitcoin exchanges affect us ?
Actually there are another factors that we need to see before to say that we can use direct even after the ban/regulates .Exchange are the big ways to make buy and sell of any coins ( available at exchange ) but at the p2p trading platform we need to work with particular coins .
Here we can take the example of the localbitcoins.com where people can buy and sell with better escrow services .
But if the government will restrict to the exchanges than surily they will get banned by ip , but to use those sites with vpn will not be better option for those who are honest and follow government guidelines .
So here we can say that a big part of the bitcoin market will get fluctuate due to ban of the exchange , and in that case we will needed ti buy those coins which get lowered by price and wait for the long time to became the Market again at stable and high price .
An average bitcoin user can buy and sell for major sovereign currencies using online exchanges.so exchanges acts as brokers serving as a platform over which buyers and sellers come together or as dealers. Taking on an inventory of bitcoin to sell to users and profiting from bid-ask spreads. But how can bitcoin exchanges affect us ?
Bitcoin exchanges can affect us because without them they cannot convert our coins into fiat or other coins and without them the coins we got would be hard to sell or trade. It would also affect us if the exchange decides to close or shutdown immediately without notice, we would lose money that way especially if a famous exchange do so. Normally it doesnt only cause money loss for it's users when an exchange closed without notice but it sometimes affects the price. An average bitcoin user can buy and sell for major sovereign currencies using online exchanges.so exchanges acts as brokers serving as a platform over which buyers and sellers come together or as dealers. Taking on an inventory of bitcoin to sell to users and profiting from bid-ask spreads. But how can bitcoin exchanges affect us ?
Exchanges allow for proliferation of Bitcoin as a currency that can be effectively exchanged for goods and services, if they didn't do this then there would be a lot less commerce for the average person. If you had no ability to exchange Bitcoin into fiat money you simply wouldn't be able to replace the products you sell, and that isn't how a business can survive. Plus Bitcoin lets you move money to other people, if you couldn't then there would simply be no use for Bitcoin since you can't just go and get food at the local grocer with Bitcoin.
An average bitcoin user can buy and sell for major sovereign currencies using online exchanges.so exchanges acts as brokers serving as a platform over which buyers and sellers come together or as dealers. Taking on an inventory of bitcoin to sell to users and profiting from bid-ask spreads. But how can bitcoin exchanges affect us ?
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