Main differences between an EXCHANGE and a BLOCKCHAIN

Main differences between an EXCHANGE and a BLOCKCHAIN

Exchanges are trading platforms used around the world to buy or sell cryptocurrencies, also known as Trading. Its role is to connect buyers and sellers of altcoins, by providing –at least in theory– a safe and transparent source to ensure the buyers receive their digital coins and the sellers get the negotiated price, either in digital or fiat currency (dollars, euros, pesos, etc.). They are also known as cyptocurrency brokers, and their autonomy allows them to define the following:

  • The digital currencies they will be working with
  • Commission rates
  • Commission rate per transaction
  • Available paying options for buyers and sellers
  • Documentation required to the customers
  • Deposit terms
  • Accepted fiat currencies

To access such platforms, in addition to your personal registration, you are required to transfer funds to your trading account in that Exchange. You can deposit those funds in the Exchange banking account, credit card, PayPal or through digital currencies accepted by the broker. This way, buyers and sellers receive the currencies chosen during the purchase or sale transaction.

Trading is about the acquisitions and sales of every participant looking for profits, and every individual can choose between buying and selling, under the same premise every market has: buy cheap and sell high. That's why digital currencies are often referred as “digital assets”, since it’s a futures investment market that involves some inherent risks.

Any customer with funds available (fiat currency) in his Trading account can transfer balances to a national or foreign account, either to withdraw his money or make any payments. Whatever the case is, the customer enjoys substantially lower rates than those offered by banks.

Market analysts advise to work with Exchanges that have high-end security protocols, both for the platform and the customer’s accounts. It is also important to consider the transactions volume, since it shows its capacity and liquid assets.

We can say that an Exchange is just a safer way for trading cryptocurrencies. That’s why the negotiated value of a digital currency can vary according to each Exchange, since it isn’t the platform what defines it. That’s why it's very important that you analyze how the platform work and determine the value of your crytpocurrency.

The Blockchains, on the other hand and to put it simply, "Are decentralized databases (ledgers) that record operations in chronological order in a public, immutable and digital way. The operations are 'encrypted' (hash) and registered in blocks, which combined with its date (timestamp), are linked (chain) to the previous block of operations. And, because it is decentralized, nobody "orders" the blocks and the operations are recorded according to the data of the computers (nodes) that are part of the ledger ."

Each Blockchain is responsible for its currency, meaning it's dedicated exclusively to a single currency. Therefore, in our case, Bits Blockchain is the home of ATM Coin (ATMC). However, we created a robust, state-of-the-art system for our community, focused on the total safety for our users. We are hosting in a single platform the encryption of the ATMC in the Blockchain, an Exchange and an e-wallet system. All in a very simple and convenient way for our users, making it easier to understand the trading operations and reports of the Blockchain, among other things.

Bits Blockchain is a security fortress. We perform constant monitoring of the entire market looking for suspicious paterns of behavior from virtual thieves, always protecting your personal finances, ranging from the adoption of high-security protocols (SSL Certification, ISSO 27001/9001 infrastructure, DDOS and Multifirewall Protection, Cryptographic Data Bank with multiple backups, state-of-the-art patented security system), as well as the three-factor authentication system to access and verify the accounts of each member of our platform.

By Javier Espinosa.

  • Ing. Javier Espinosa

    Ing. Javier Espinosa

    Ing. en Sistemas Computacionales con especialidades en Tecnologías de la Información y Desarrollo Humano. Socio fundador de ITDA Corp.

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