Cryptocurrency exchanges – Check out the benefits of the exchange

Cryptocurrency exchanges are platforms that allow users to trade cryptocurrencies for other assets such
as digital and fiat currencies. In short, cryptocurrency exchanges serve as a middleman between a buyer
and a seller, earning money through commissions and transaction fees. There are two types of
exchanges centralized and decentralized. Centralized cryptocurrency exchanges serve as a go-between
for a buyer and a seller. These are more reliable because they are operated and controlled by a
company.

Decentralized cryptocurrency exchanges (DEX) enable users to conduct peer-to-peer transactions

without the involvement of a third party or crypto prices. Some users prefer decentralized exchanges
due to some of the issues associated with centralized exchanges. Along with it, you can check the main
benefits of the cryptocurrency exchanges.

The Pros Cryptocurrency Exchanges

1. Simple to use

Centralized exchanges provide novice investors with a familiar and friendly environment for trading and
investing in cryptocurrencies. Users of centralized exchanges can log into their accounts, view their
account balances, cryptocurrency prices, and make transactions through applications and websites, as
opposed to crypto wallets and peer-to-peer transactions, which can be complex.

2. Dependable

When it comes to transactions and trading, centralized exchanges provide an extra layer of security and
dependability. Centralized exchanges provide greater comfort by facilitating the transaction through a
developed, centralized platform.

3. Reducing the risk of hacking

The cryptocurrency exchange users are not required to transfer their assets to a third party. As a result,
there is no risk of a company or organization being hacked, and users are protected from hacking and
theft. Decentralized exchanges prevent market manipulation by allowing for peer-to-peer
cryptocurrency exchange, protecting users from fake trading and wash trading.

4. Market hours for cryptocurrencies

There is no centralized governance of the market, the cryptocurrency market is usually open for trading
24 hours a day, seven days a week. Cryptocurrency transactions occur directly between individuals on
cryptocurrency exchanges around the world. However, there may be downtime while the market
adjusts to infrastructural updates.

5. Extensive exposure
The CFD trading is a leveraged product; you can open a position a deposit that is only a fraction of the
total value of the trade. In other words, you could gain significant exposure to the cryptocurrency
market while only committing a small portion of your capital. The profit or loss from your cryptocurrency
trades will reflect the full value of the position at the time it is closed, so trading on margin allows you to
make large profits.

6. Account opening in less time

When purchasing cryptocurrencies, you must do so through an exchange, which necessitates the
creation of an exchange account and the storage of the cryptocurrency in your own digital wallet. This
procedure can be cumbersome and time-consuming.

However, when you trade cryptocurrency with IG, you do not need direct access to the exchange
because these are exposed to the underlying market on your behalf. You do not have to set up and
manage an exchange account, so you could be up and running and ready to trade much faster. With our
simple application form and instant online verification, you could be trading in less than five minutes.