How technically cryptocurrencies exchange takes place on the crypto-exchange

Started by ShreeVaghani, Jul 22, 2022, 03:20 AM

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ShreeVaghaniTopic starter

If I change on the crypto-exchange (EXMO, Livecoin) . I have funds at my Bitcoin account, and it need to be exchanged for Monero, how does the exchange technically work?
.Bitcoin funds from my account are transferred to other account, who buys, and he transfers funds from his Monero account to my Monero wallet? .
What is the chain for such exchange? Do I understand correctly how it happens?
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HarshMehra

You understand everything correctly. But you still need to check details with the exchange on which the crypto-exchange will be made.

In such case, we are talking about your internal exchange wallets. What and how happens to them in the process of exchanging cryptocurrencies - the administration of the crypto-exchange will answer you in all details (maybe ..).
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lincon

The cryptocurrency storage system is somewhat similar to a bank, only instead of an account number, the owner will have a unique address, a kind of encrypted code. Using this code, you can buy and sell tokens.
 The code is created in the blockchain, with the help of which your wallet is formed. Wallets can be "hot" and "cold".

The "hot" cryptocurrency wallet is constantly connected to the Internet. Access to it is provided by special online services: separate platforms on the network and mobile applications, as well as wallets embedded in crypto exchanges. Simply put, a "hot" wallet is a permanent Internet address where virtual money is stored.
With the help of such a wallet, you can quickly sell and buy coins, without performing additional transaction checks.

The "cold" wallet does not have a permanent connection to the network: the cryptocurrency is stored offline under the protection of a personal key. Most often, a "cold" wallet is a USB flash drive or any other physical medium on which the code is written.
There are even special so-called hardware wallets for cryptocurrencies, they are easy to find in any online store. A hardware wallet is a special electronic device compatible with a computer and similar to a USB flash drive with a small screen.
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