What is Bitcoin Exchange?
Cryptocurrency, or more precisely Bitcoin, is traded on a Bitcoin exchange. It's a venue that brings potential buyers and sellers together.
Depending on the exact Bitcoin exchange, the operator may or may not charge a fee to cover any costs incurred during the transaction. Today, stock exchanges of this kind are the easiest way to buy Bitcoins.
As a rule, a quick registration supplying personal data is sufficient, allowing you to enjoy the benefits of this cryptographic money. It often takes only a few seconds from the registration phase to the processing of a transaction.
How is the price determined?
Just as with a stock exchange, the supply and demand of cryptocurrency is an important factor for Bitcoin. The operator of the respective platform has no influence on this and remains a passive party.
To make a purchase, there must be someone willing to sell their coins at the same time as prospecting. Buyers and sellers are brought together by establishing a so-called market price.
At the request of the buyer, a limit can be set for the maximum price to be paid. On the other hand, sellers can choose the minimum price they wish to receive for selling their coins.
Since the price of Bitcoins on stock exchanges is determined in a market economy manner, it can always be described as fair. For short periods of time, however, fluctuations in one direction or the other can occur.
Because bitcoins are nowadays traded on a massive scale, there are almost always buyers and sellers active at the same time.