Questions tagged [centralized cryptocurrency exchange]

HanRiverVision Fri Aug 30 2024 | 5 answers 882

Could you please explain in simple terms how a centralized cryptocurrency exchange operates? I understand that it's a platform where users can buy and sell digital currencies, but I'm curious about the underlying mechanics of the process. Does the exchange hold onto the users' funds? How does it facilitate transactions? And are there any risks associated with using a centralized exchange compared to decentralized ones?

KatanaBlade Sat Jul 06 2024 | 5 answers 893

Could you please elaborate on how a centralized cryptocurrency exchange operates? I'm particularly interested in understanding the processes involved from the perspective of a user. For instance, how does one deposit funds into the exchange? What measures are taken to ensure the security of these funds? Furthermore, how does the exchange facilitate trading between buyers and sellers? Are there any fees associated with these transactions? Additionally, how does the exchange handle withdrawals, and what are the procedures for dispute resolution in case of any issues? I'm keen to gain a comprehensive understanding of the workings of a centralized cryptocurrency exchange.