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How Bitcoin Exchange Works?

How Bitcoin Exchange Works?

Do you understand how a bank works? Banks are incredibly simple to understand. They start off with someone depositing money in one of the currencies that the bank supports. The bank then uses that money to exchange with other people who want that currency.

When the initial person that deposited money desires their money back in another currency, it’s someone else’s money of that currency that is being used. These balances are constantly being traded between people, but the bank is standing in between to make sure that no one is getting ripped off.

Exchanging with bitcoins is exactly the same. By placing orders to “buy” or “sell” currency, the exchange software makes matches and helps you to accumulate the bitcoins or currency that you need.Now, currency exchange goes through ebbs and flows throughout the day because the rate of currency exchange changes, but generally, they’re in the same range and can be easily tracked. At any time, there are prices that are above and below the buy and sell orders, which is what those are “set at.”

This entire process is overseen by using specialized software that is designed to keep your money safe. Obviously,things can happen, but in general, bitcoin exchange is incredibly safe and you don’t have to worry about getting your money stolen or your account hacked into. If you can trust your bank to hold your information online, you can trust a bitcoin exchange as well.

Read More @ http://bitcoinworldwide.net/bitcoin-exchange