What is an Exchange?

An exchange is an internet marketplace for converting fiat currencies to a cryptocurrency (e.g. US dollars to Bitcoin). There are also some exchanges that also allow converting one cryptocurrency to another (e.g. Bitcoin to Ethereum). Basically, what they offer is an online platform for buying and selling digital coins.

To be able to trade in an exchange, you need to open an account and have it verified. Once these two things are done, you may now use the payment methods that your exchange supports like credit cards, PayPal or bank transfer for buying and selling digital currencies. Some exchanges however do not support these traditional payment methods but rather cryptocurrencies.

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