Figure 4.1: Leading cryptocurrency exchanges worldwide

The

following

pie-chart

shows

the

market

capture

of

varied

cryptocurrencies with Bitcoin ($ 19 1 bn) and Ethereum ($ 105 bn) having the

leading position followed by others such as Ripple, Bitcoin Cash, Cardano,

Stellar, Litecoin, EOS, NEO, and NEM.

Figure 4.2: Market capture of varied cryptocurrencies

What is a crypto exchange?

A financial institution is a bank having a license to receive deposits of all

kinds, including savings, current and fixed, transfer funds from one account

to another, and store the money for its clients. The banks legally hold the

right to exchange one fiat currency for another for their customers.

A cryptocurrency exchange offers to its clients services that are similar to a

bank in the digital world; additionally, these exchanges function similar to a

stock exchange.

The

financial

intermediary

needed

to

link

together

different

cryptocurrencies and offer their clients a Web-based centralized gateway to

manage their funds is a crypto exchange. Based on the market value of the

given asset, the users can exchange one kind of digital asset for another

through cryptocurrency exchanges, which are secure online marketplaces.

Cryptocurrency exchanges function in two ways:

Peer-to-Peer (P2P) trading is where the seller sets the price.

Similar to currency exchanges are Broker platforms, which set the

price as market price plus a premium.

The exchange of one cryptocurrency for another, the buying and selling of

coins, and the exchange of fiat money into crypto are allowed by them. The