Cryptocurrency trading works very similarly to real-life currencies such as the United States USD, Canada’s CAD, China’s RMB and if you understand the stock market, also works very similarly to that too.
Like fiat currencies and stocks the value of cryptocurrencies go up and down, however, it’s much more volatile because cryptocurrency is mostly perceived value. Fiat currencies are backed by foreign exchange rates and governments. Stock prices depend on the performance of companies and are under the scrutiny of regulatory agencies like the SEC. Cryptocurrency is not tied to anything and because of its decentralized nature, nothing regulates it except the holders of the coin itself. Therefore, a lot of trust is placed on the users to responsibly hold/spend the token. If a cryptocurrency whale, a person who holds lots of a certain currency, sells then the overall price of the cryptocurrency will fall dramatically and similarly, if a person buys a lot of cryptos then the price will go up and the coin price is said to be rallying. These transactions happen every day which is why the coin price jumps up and down all the time.
A lot of cryptocurrencies are traded through decentralized exchanges called dexs. Large Dexs include Binance, Uniswap, Pancake Swap etc. that allows buyers and sellers of crypto to come together and do transactions.
These are a lot like stock market exchanges that allow for the buying and selling of stocks.
Check out BCharity’s Dex @ bcharity.net
