DeutschThe term “Exchange” is the English translation for the word “Börse” or “Austausch”. When we talk about an exchange, we are talking about a crypto exchange.
What is an Exchange?
An exchange or a crypto exchange is a trading platform where users can buy and sell cryptocurrencies. The users of an exchange always trade with other users of the exchange. The special thing is that the users do not come into direct contact with each other and thus remain anonymous from the other exchange participants. Instead, trading is carried out by placing buy and sell orders.
Nowadays there are different types of crypto exchanges. On the one hand, there are centralized crypto exchanges. With a centralized crypto exchange, the exchange can dispose of the users’ accounts and thus also manage the private keys. This is because many crypto exchanges offer their own wallets that are integrated into the exchange. Anyone who stores their coins on a centralized exchange transfers responsibility for their own cryptocurrencies to the crypto exchange. Nowadays, there are therefore decentralized exchanges (DEX).
The best-known exchanges in German-speaking countries include Bitvavo, Bitpanda, Binance and Coinbase.
