Key Features of Crypto Exchanges
Trading Pairs: These are combinations of coins that can be traded for each other. For example, BTC/USD is a trading pair where you can trade Bitcoin for US dollars.
Liquidity: This refers to the ability of the exchange to enable transactions without significantly affecting the market price of a currency. High liquidity means easier and faster transactions.
Security Measures: Given the digital nature of cryptocurrencies, exchanges implement various security measures like two-factor authentication (2FA), cold storage (offline storage of assets), and encryption technologies to protect users’ funds and data.
Fees: Exchanges charge fees for various transactions, including trading, withdrawing, and sometimes depositing funds. These fees vary between platforms.
