The rapid growth enjoyed by cryptocurrencies in recent years has made them attractive to many people. However, owing to the extremely intricate blockchain technology, enormous knowledge is required in digital money trading. In addition, numerous frauds are emerging as the decentralization of blockchains is indicative of operating businesses under no regulation. As such, concepts that you must know in digital currency trading are introduced as follows to enrich your knowledge in this field.
Exchange: It is a marketplace where securities, commodities, derivatives and other financial instruments are traded.
KYC: It is an acronym for “Know Your Customer”, the identity verification with the aim of compliance and anti-money laundering.
CEX: It is the abbreviation for Centralized Exchange, referring to exchanges equipped with centralized operation teams. Users should be verified through KYC.
DEX: It is the abbreviation for Decentralized Exchange, referring to exchanges built on blockchains that operate transactions automatically. No prepaid charges for cryptocurrencies or per-transaction fees are required.
Erc20, Trc20 or Bep20: They are representative of issuance standards of crypto tokens on blockchains. Crypto assets issued on their own blockchains must abide by the issuance standards accordingly.
Wallet: It is the vehicle of receiving crypto tokens, presenting as the address of the wallet on its own blockchain. You are well recommended to use decentralized wallets.
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