It is difficult to imagine a person who has never heard of cryptocurrencies. At the same time, the majority continues to stand aside and is not interested in how to make money in the digital economy. Units go deeper into the topic, but many of them soon quit their main job for the sake of trading …
If mining was recently considered the main way to get cryptocurrencies, then the industry is changing with development, and now cryptocurrency exchanges are becoming the main driving force of the new economy. Let’s see what the exchange is and how it works.
A cryptocurrency exchange is a digital platform for exchanging one cryptocurrency for another at the established rate. Users create exchange requests by setting the value and volume of the cryptocurrency. If a suitable counter-proposal has already been registered on the site, a deal is concluded between users.
The speed of transactions on the cryptocurrency exchange is higher than on traditional ones. The speed is ensured by the fact that the application book contains only those offers that are secured by the user’s account – cryptocurrency on the account balance. The exchange connects buyers and sellers, receiving for this a fraction of a percent of the number of transactions.
How is the cryptocurrency exchange
A site with updated information about courses, a database of buy or sell orders and the ability to conduct trading operations based on the submitted data – this is how cryptocurrency exchanges look for users. In fact, everything is more complicated, because behind the facade of the interface lies software and powerful hardware, and behind the apparent ease of operations – kilometers of code and thousands of man-hours.
SoftwareThe exchange is responsible for creating accounts, checking balances, placing new applications for trading and withdrawing executed ones, displaying information to users, transferring funds between hot and cold wallets of the exchange. The speed of processing operations is critical: the less time a machine needs, the more it will remain for a person. Therefore, sites are striving to bring development to an incredible level – right down to processing a million operations per second.
The hardware of the exchange is servers designed to store information about users, accounts, orders, and transactions.
Consider the principles of work and the structure of the exchange in more detail.
Cryptocurrency Exchange Principles
The basic elements of trading platforms include a web interface (trading terminal and user’s personal account), a trading core, hot and cold wallets for storing funds and additional modules.
The trading core is the “heart” of any cryptocurrency exchange. The core can withstand the load due to the distributed computing architecture.