Category: 10.Beginner’s Guide to Crypto Exchanges

Trading cryptocurrencies is not free.😲 When buying and selling cryptocurrencies on a trading platform provided by a centralized crypto exchange (CEX), you have to pay trading fees. It’s important to be aware of the types of trading fees that crypto exchanges charge and understand how they work. In general, when calculating fees on a crypto exchange, the…

What is a depth chart? Sounds like something a scuba diver uses. But nope. That’s not it. On most trading platforms provided by centralized crypto exchanges (CEX), aside from a price chart, a “depth chart” is also displayed. A depth chart is a tool for understanding the supply and demand of cryptocurrency at a given moment for a range of…

In the crypto market, most crypto traders and investors buy and sell cryptocurrencies on a centralized exchange (CEX). A key concept that you should understand before placing your first crypto trade on an exchange is the “order book”. An order app offers a real-time “behind the scenes” view into the supply and demand of a particular cryptocurrency. In this…

What is liquidity? More specifically, what is market liquidity? One thing is for sure, it has nothing to do with buying or selling water. 🤣 What is liquidity? Liquidity, or more specifically, market liquidity, refers to the ease with which you can buy or sell whatever it is you’re trying to buy or sell. with a limited price impact. Something…

On your crypto exchange’s trading platform, when looking to trade a specific cryptocurrency like bitcoin (BTC), you will see a bunch of numbers known as the “bid” and “ask” prices. But what are these prices? And what do they mean? Understanding the mechanics of pricing is crucial to understanding how crypto exchanges work. In order to have…

If you’re new to the crypto world,  it won’t be long until you come across the phrases, “fiat on-ramps” and “fiat off-ramps”. In this lesson, you’ll learn what these phrases mean. 👍 The process of transferring money between fiat and crypto is known as “on-ramping” and “off-ramping”. If you’ve ever bought crypto with fiat money, you’d…

After signing up with a crypto exchange, you’ll probably be required to configure security settings on your account and come across something called “2FA“. In this lesson, I’m going to explain what 2FA is and why most crypto exchanges require it. In order to log in to any online account, authentication is required. Authentication is just a…

What is KYC? I know what you might be thinking… Nope. Sorry. Unfortunately, it’s NOT a new kind of Kentucky chicken. 😂 What is KYC? When opening an account, you may notice that the crypto exchange requires you to complete something called a “KYC” verification process. Crypto exchanges in the U.S. and many other countries are subject…

Doing your own homework (“DYOR”) first before trading on a crypto exchange is important. Don’t just pick an exchange just because it’s the first one you see listed on Google or the most talked about on Reddit. There are a lot of cryptocurrency exchanges you can choose from these days but how do you know…

How do crypto exchanges work? Centralized crypto exchanges (CEX) operate in different countries and support different local (fiat) currencies and different cryptocurrencies. But they all work in similar ways. Let’s go over the steps: Create an Account To use a crypto exchange, you need to create an account. Even if you’re a wizard. When you sign…