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Chapter 3:  Crypto Exchanges

Crypto Day Trading: The Difference Between Buying, Trading, and Swapping

Interesting Fact:
Did you know that the difference between trading and swapping lies in the finality of a transaction?
easy
10 minutes

In this section, I’m going to tell you about crypto day trading, or, to be more precise, - buying, trading, and swapping!

Whenever we talk about performing transactions with crypto, there’s a variety of terms that get thrown around. Some people “trade” cryptocurrencies, while others prefer to “buy and sell them”. Then, you also have the “cool kids” in the back, who “only swap their cryptos, because that’s the way to go”.

Are there any differences between any of these transactions, or is it all the same thing, but with different names? Well, that’s exactly what I’ll explain in this section!

So, we’re going to talk about crypto day trading - in other words, buying, trading, and swapping cryptocurrencies. I’ll explain each of these terms, on their own, and then we’ll look into the actual similarities and differences between them. In the end, we will also talk about which of these activities might suit your specific wants and needs best!

So, let’s get to it!

Crypto Day Trading VS Swapping: What’s More Rewarding? (Animated)

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Video Explainer: Crypto Day Trading: The Difference Between Buying, Trading, and Swapping

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Crypto Day Trading VS Swapping: What’s More Rewarding? (Animated)

Crypto Day Trading VS Swapping: What’s More Rewarding? (Animated) Crypto Day Trading VS Swapping: What’s More Rewarding? (Animated)

Crypto Buying VS Trading VS Swapping: Definitions and Key Differences

Now, let's look into crypto day trading by first talking about “buying”.

Crypto day trading: Crypto Buying.

Admittedly, this is actually the simplest type of crypto transaction, of the three. If you’ve ever transacted with crypto, there’s a pretty good chance that you have bought cryptocurrency, at some point!

The term “buying” essentially means that you’ve paid money for the cryptocurrency that you’ve acquired. Now, I must be specific here - “money”, as in, fiat (or traditional, government-issued) currency, such as the US dollar or the Euro.

As you can imagine, buying and selling crypto is definitely a common practice, especially if you’re not looking to become a day trader, and are only interested in accumulating as big of a portfolio as possible. The most common method of buying crypto these days is to visit a popular centralized exchange, register on it, add a payment method (such as a credit or debit card), and make your purchase.

Simple, right? Well, yes, it really is! This is why buying and selling crypto is so popular, especially among industry newbies - you don’t need to worry about the technical stuff, complex gas fees, and so on.

Now, when it comes to what is crypto trading, things are a bit more interesting.

Crypto day trading: Crypto trading.

As the term might imply, when you trade cryptocurrency, you’re essentially giving away your crypto for some other coin or token, instead of fiat money. If that sounds a bit confusing, here’s an example:

Imagine that your friend opened up an apple shop. You come to visit, and even though you don’t really like apples, you’re a supportive friend, and decide to get a few of them for yourself.

Now, your friend allows you to either BUY the apples, or TRADE them. If you choose the prior option, you would simply pay your friend with money, and get the apples in return, as with most other shops in the world.

However, if don’t have any money with you, but have brought along a few pears, your friend would accept them for the apples, too. This would constitute a trade - you give an asset in order to receive an asset, both of which don’t involve traditional money.

Trading crypto is, honestly, a very common activity, as well. Think about it this way - once you’ve bought some crypto on the exchange that I mentioned earlier, you might want to trade it for some other asset, on that same exchange. Most centralized exchanges have designated trading interfaces, where you can do just that.

Now, this is where it gets a bit more tricky. Up to this point, we’ve talked about centralized exchange platforms - however, crypto trading can be performed on decentralized exchanges, as well! Many traders actually prefer using DEXs, since they can often find small, less-known tokens on these platforms, and try to become early investors in said tokens.

If centralized and decentralized exchanges are a mystery to you, there's a dedicated section on this very topic - check it out!

In addition to that, you may also choose to both buy, as well as trade crypto in person - you would meet up with somebody, and perform the transaction that you both agreed upon. I wouldn’t really recommend doing so, however, for obvious privacy and security reasons.

Though why would somebody TRADE cryptocurrencies, when they can simply buy them? Isn’t the latter much simpler and faster to do?

Well, yes - but there are multiple reasons why you’d choose the trading route.

Crypto day trading: Not all cryptocurrencies can be bought with fiat money.

For starters, not all cryptocurrencies can be “bought” with fiat money. If you want to own some sort of a coin or token that doesn’t have a fiat pair on the exchange that you’re using, and can only be acquired by exchanging another crypto asset for it, you will likely need to perform a trade, in order to get it! Note that I’m using the term “exchanging” interchangeably with “trading” - this is just to keep things simple and clear.

Here’s an example of what I just told you - imagine that you’ve just bought your first Bitcoin, on an exchange platform. Now, you also noticed that there’s another token on that same exchange - we’ll call it the X token. Now, this token only has a BTC pair - meaning, it can only be acquired by trading Bitcoin for it. Since, for some reason, you really want to become an owner of X token, you decide to enter a trade on the exchange, and trade some of your Bitcoin for the aforementioned X token. Simple!

Next up, many individuals who partake in crypto trading do so in order to make a potential profit. These people are called “day traders” - they are constantly analyzing the market, and making educated guesses about which cryptocurrencies are going to rise or fall in price.

Is crypto day trading worth it? Well, it’s a super-complex process, and there are few day traders who are able to do it for a living - however, trading different cryptos is an essential activity here, as buying & selling simply wouldn’t suffice!

Crypto day traders are people who also participate in leverage crypto trading, or margin trading, as well. These are some advanced trading strategies that involve borrowing money from the exchange platform, in order to boost your position.

With all of that said, let’s look into the last term - crypto swapping.

At first glance, crypto swapping might look almost identical to trading. However, there’s one, big difference between the two - with trading, you enter an order book, and wait for someone to match your trade. With swapping, on the other hand, everything happens instantly - you simply swap some of your crypto asset for another, of equal value.

Crypto day trading: Swapping VS Trading.

Is swapping crypto a taxable event, then? Well, this is something that depends on both the region that you live in, as well as the tax laws in place, at the point in time when you’re reading this section! It’s important that you look into the intricacies of crypto day trading and swapping, tax-wise, before you perform any of these activities!

Going back to crypto swapping, if you’re feeling a bit confused, you can think about it this way - cryptocurrency trading is performed when you want to maximize your potential profit, and are speculating on how the market will act and react. On the other hand, crypto swaps are all about convenience - they are super-simple to execute, happen instantly, and allow you to exchange your crypto coin or token for a different asset, hassle-free.

The Use Cases of Crypto Buying VS Trading VS Swapping

At this point, you should have a pretty good understanding of the differences and similarities between crypto buying VS trading VS swapping. Now, one more thing that I’d like to talk about is the actual use cases of these types of transactions.

Or, in other words, in what situations would buying, trading, and swapping crypto be most beneficial?

Crypto day trading: The use cases of crypto buying, trading, and swapping.

Starting off with crypto buying, this is quite self-explanatory. If you’re just at the beginning of your crypto journey, and still haven’t even registered on an exchange platform, it's highly likely that your very first mission is to acquire some coins or tokens for yourself. Unless you get lucky with an airdrop, or receive crypto as a gift from your friend, chances are that you’ll end up buying the assets, with fiat money.

Buying crypto is also the main activity that long-term investors participate in, too. Say, you’re a fan of Bitcoin, and a huge believer that this specific crypto asset will grow in price, in the long run. In this situation, you’d probably try to buy BTC quite often, and thus, grow your portfolio. Long-term investors usually don’t really need any trading or swapping functionality - they just buy their asset, transfer it to their wallets, and forget it.

On the flip side, though, crypto day trading is for those cryptocurrency enthusiasts who are a bit more involved with the market, or who want to acquire crypto coins and tokens that aren’t listed on any of the big, centralized exchanges. Don’t get me wrong, though - crypto trading isn’t only for hardcore day traders and people who are trying to make a living out of it!

Instead, trading is something that the vast majority of crypto-savvy people will surely participate in. This is especially true if you’re looking to get more involved with DeFi, NFTs, staking and yield farming, and so on.

Not familiar with the terms I just mentioned? Check out other sections on this Crypto 101 Handbook - it has all of those concepts explained in detail, and many more!

Lastly, swapping is going to be best for anyone who’s looking to exchange their cryptos in a super-quick and seamless manner. If you’re not actively trying to make a profit, but instead find yourself in need of a different crypto asset, utilizing a cryptocurrency swap is probably the way to go!

At the end of the day, however, it all boils down to the example I gave earlier - the one with your friend opening an apple shop. You can come in, and buy an apple, or trade something for that apple - I mean, you might even be able to do half an hour’s worth of work, and get the apple as a reward!

My point here is that there are multiple ways of how you can acquire a specific asset. The very same is true with crypto, as well - buying, trading, and swapping cryptocurrencies are all different types of transactions that you can utilize.

meme tokens<\/strong><\/a> ruling the market, while the next, you have Elon Musk planning to put an actual, physical <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-dogecoin-doge/">Dogecoin on the actual Moon!<\/p>\n<p>There is, however, a less-exciting side to crypto, as well - one that has to do with regulations, investigations, and general bureaucratic processes. While it may not be as fun or cool as the aforementioned concepts, this side of crypto is still very important to understand, for any avid crypto enthusiast. And, <strong>this is where the concepts of AML &amp; KYC crypto reside<\/strong>, as well.<\/p>\n<p>So, in this section, we&rsquo;re going to talk about AML &amp; KYC in crypto. I will tell you what these terms mean, and explain them in the context of crypto. Then, we&rsquo;ll also talk about the one, major controversy that surrounds them - make sure to stick around for this!<\/p>\n<p><em>Now, then - let&rsquo;s get to it!<\/em><\/p>\n<h2>What is KYC &amp; AML?<\/h2>\n<p>So, to start things off, let&rsquo;s first establish what does KYC mean in crypto, as well as where does AML come in, too.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: What is KYC&amp;AML?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_01.jpg/" alt=\"KYC crypto: What is KYC&amp;AML?\" width=\"1000\" height=\"967\" \/><\/p>\n<p>Both of the terms in question are abbreviations - KYC stands for <strong>&ldquo;Know Your Customer&rdquo;<\/strong>, while AML is <strong>&ldquo;Anti-Money Laundering&rdquo;<\/strong>. As you might have guessed already, both concepts are also related to cryptocurrency regulation.<\/p>\n<p>These terms are, admittedly, often used interchangeably. However, that&rsquo;s not entirely the correct thing to do - <strong>you can think of AML crypto as a broad set of rules, one of which is KYC<\/strong>. There are other things that make up the Anti-Money Laundering concept, but, in this section, we&rsquo;ll focus exclusively on KYC.<\/p>\n<p>So, as far as the Know Your Customer regulations are concerned, the idea behind them is quite simple, really. If you&rsquo;ve ever used a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized cryptocurrency exchange<\/strong><\/a>, you probably know the drill - once you register on the exchange, and set up your profile, you still won&rsquo;t be able to trade any cryptocurrencies until you&rsquo;ve provided the exchange platform with some personal identification data of yourself.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Know Your Customer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_02.jpg/" alt=\"KYC crypto: Know Your Customer.\" width=\"1000\" height=\"753\" \/><\/p>\n<p>That&rsquo;s exactly what KYC is, from the user&rsquo;s perspective - <strong>a form of identity verification<\/strong>, so that the exchange would know that it&rsquo;s actually YOU who&rsquo;s doing the trading and crypto acquisition. It usually includes a photo of your ID, a selfie, your residential address (and proof of residency, as well), information about your financial background, and so on.<\/p>\n<p>Note that it&rsquo;s possible to learn how to buy crypto without KYC, as well. This is usually done via <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized exchange platforms<\/strong><\/a>, or non-KYC crypto exchanges. That said, these exchanges are usually quite complex - if you want to learn more, check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">the section dedicated to this topic<\/strong><\/a>!<\/p>\n<p><strong>KYC &amp; AML crypto compliance isn&rsquo;t exclusive to cryptocurrency exchanges, however!<\/strong> All mainstream financial platforms must abide by strict Know Your Customer regulations, and identify their clients upon them registering on said platforms.<\/p>\n<p>Here&rsquo;s an example, to allow you to understand this easier: imagine that you decide to open up a new bank account, with a completely different bank from your current one. You go to the bank&rsquo;s official website, fill out all of the boring paperwork, and set everything up. Now, part of your registration process will include KYC checks and verifications.<\/p>\n<p><strong>Why so? Well, there are a few big reasons. <\/strong>First, what if it&rsquo;s not you who&rsquo;s opening the bank account, but someone who&rsquo;s impersonating you, with fake documents and IDs? In real life, this is quite simple to determine - if you&rsquo;re opening a bank account online, though, it becomes much more difficult!<\/p>\n<p>Secondly, what if you have a lot of debt, or are someone who possesses a really rough financial past? The banking institution needs to know about all of these things, so that they could then partake in complex risk management processes, and act accordingly.<\/p>\n<p>Lastly, what if you&rsquo;re an actual wanted criminal? Allowing a person like that to open a bank account, fill it with funds, and then perform transactions could mean terrible things! All of these things - and many more - make KYC a crucial element in having a safe financial system (as much as it is possible).<\/p>\n<p>Everything that I&rsquo;ve just mentioned applies to cryptocurrency exchanges and other crypto-related services, as well. However, with crypto still being a bit Wild West-ish, <strong>the mandatory KYC verification checks present on exchange platforms are often less intrusive<\/strong> than those that you&rsquo;ll find with traditional financial institutions.<\/p>\n<p>In regards to AML - or, Anti-Money Laundering - in crypto, you can view it as a sort of an umbrella term for all of the things that exchange platforms do, in order to comply with the legal industry standards and requirements. So, in this case, <strong>KYC is just a single element of AML<\/strong> - in addition to that, cryptocurrency exchanges are constantly surveilling their client activities, flagging questionable actions, freezing accounts, complying with the FBI and other law enforcement, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Anti-Money Laundering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_03.jpg/" alt=\"KYC crypto: Anti-Money Laundering.\" width=\"1000\" height=\"476\" \/><\/p>\n<p>Feeling confused about what is KYC in crypto, as well as AML crypto compliance? Think of it this way - <strong>if KYC is an apple, then AML is an entire apple pie<\/strong>. Apples are a key part of the recipe, yes, but there are plenty of other ingredients that go into making that pie!<\/p>\n<p>Both KYC &amp; AML are quite difficult topics, and require a lot of crypto knowledge in order to be grasped, fully. If you&rsquo;re looking to educate yourself more about all-things-crypto, check other sections on this Crypto 101 Handbook - there are chapters covering everything from the crypto basics, all the way to the more-advanced stuff!<\/p>\n<h2>The Big Controversy Surrounding Crypto KYC &amp; AML<\/h2>\n<p>Now that you have a pretty good idea of what are KYC &amp; AML, and how they work in the context of crypto, let&rsquo;s move on to discussing <strong>&ldquo;the big controversy&rdquo;<\/strong> that these concepts find themselves in, within the cryptocurrency space.<\/p>\n<p>Let me start off by asking you this - do you think KYC &amp; AML are important and needed, when it comes to crypto? Now, while I can&rsquo;t really hear your answer, I bet that everyone reading this section will have very different opinions on the topic.<\/p>\n<p>In order to understand this fully, though, we must take a step back and look at the core values of cryptocurrency technology. Specifically, I&rsquo;m talking about <strong>decentralization and anonymity<\/strong> - while you can <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//decentralized-blockchain/">check out a section<\/strong><\/a> on these two concepts, to put it short, they are at the very center of crypto tech, and are considered to be the key to crypto's success, in a very general sense.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Decentralization and anonymity.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_04.jpg/" alt=\"KYC crypto: Decentralization and anonymity.\" width=\"1000\" height=\"509\" \/><\/p>\n<p>Now, what&rsquo;s the opposite of decentralization and anonymity? That&rsquo;s right - identifying yourself to a centralized cryptocurrency exchange (or other services), and revealing personal information about yourself, your financials, and your life, in general.<\/p>\n<p>You can probably see where I&rsquo;m going with this.<\/p>\n<p><strong>Currently, there are two big groups of people in the crypto space <\/strong>- those who believe that crypto should remain completely decentralized and anonymity-preserving, and others who are a bit more liberal with their approach, and welcome KYC crypto and other regulations as a mandatory part of the &ldquo;crypto going mainstream&rdquo; process.<\/p>\n<p>That&rsquo;s kind of the kicker here, as well - it&rsquo;s very easy to say that <em>&ldquo;crypto should remain decentralized and regulation-free!&rdquo;<\/em>, without evaluating what this means, on a bigger scale. Essentially, <strong>if you were to take KYC and AML out of crypto<\/strong>, completely, you would be eliminating centralized exchanges and other services, a huge array of major projects, as well as basically destroying the possibility for this asset class to become mainstream and massively adopted, for the foreseeable future.<\/p>\n<p>Some people believe that this would essentially result in a <strong>cryptocurrency ice age<\/strong>. It&rsquo;s a pretty bold statement, that&rsquo;s true, but when you think about it, it makes sense - without any regulatory frameworks, crypto would be banned essentially everywhere, since no company or government would risk interacting with it, and being liable for any criminal activities that might be happening within the space.<\/p>\n<h2>The Future of KYC &amp; AML in Crypto<\/h2>\n<p>Now, I admit - I really threw you into the deep end there! But, as complex as this topic might appear to be, it&rsquo;s important to understand that <strong>things are NEVER black and white<\/strong> - KYC &amp; AML crypto exchanges, as well as other services, aren&rsquo;t an exception, either.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Crypto exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_05.jpg/" alt=\"KYC crypto: Crypto exchanges.\" width=\"1000\" height=\"325\" \/><\/p>\n<p>Every single day, the global crypto community is looking for viable compromises - ways of how to increase the mass adoption of crypto and blockchain technology, while still retaining as much of the earlier-mentioned traditional values as possible. It&rsquo;s definitely not a simple problem to solve, and it also heavily depends on the region where you reside, as well! Some parts of the world are very open to crypto, while others aim to outright ban it.<\/p>\n<p>These days, the general global focus appears to lie on <strong>increasing the reputability and security features of cryptocurrency service providers<\/strong> - centralized exchanges, lending and borrowing platforms, interest-earning projects, and so on. This is because even those crypto enthusiasts who agree that some form of KYC is mandatory for the space are skeptical about just how safe their personal information is with said platforms.<\/p>\n<p>It makes sense, when you think about it! As I&rsquo;ve mentioned previously, traditional financial institutions are regulated rather strictly. With crypto exchanges, for example, <strong>the regulations are usually a bit more &ldquo;up in the air&rdquo;<\/strong>, which makes some exchange platforms become too relaxed on their policies. Then, if some security vulnerability occurs on one of such exchanges, the information you&rsquo;ve provided to the platform could be at risk of getting leaked and stolen!<\/p>\n<p>Once again - these are very serious, as well as difficult problems to solve! However, they do impact the general ecosystem of the cryptocurrency market, and can really influence new technologies and the prices of your favorite crypto assets, too. If you are looking to become knowledgeable with crypto, KYC &amp; AML issues are something that you really need to look into and understand!<\/p>","definition":"Did you know that concepts like KYC and AML come from traditional finance?","status":"published","meta_title":"What is AML and KYC in Crypto?","meta_description":"Trying to figure out what AML and KYC crypto concepts stand for in the cryptocurrency world? You'll find a thorough explanation right here!","meta_keywords":"kyc crypto, kyc meaning crypto, what is kyc crypto, kyc crypto meaning, non kyc crypto exchanges, what does kyc mean in crypto, aml crypto, crypto aml compliance, aml crypto exchange, how to buy crypto without kyc","modified_content":"<p>&nbsp;In this section, we&rsquo;re going to talk about <strong>what is KYC in crypto<\/strong>!<\/p>\n<p>Cryptocurrencies are a very exciting topic to explore - it seems like every day, there&rsquo;s an innovative, industry-breaking concept being introduced with blockchain tech. To add to that, this industry is absolutely unpredictable - one day, you have <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-memecoin/">meme tokens<\/strong><\/a> ruling the market, while the next, you have Elon Musk planning to put an actual, physical <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-dogecoin-doge/">Dogecoin on the actual Moon!<\/p>\n<p>There is, however, a less-exciting side to crypto, as well - one that has to do with regulations, investigations, and general bureaucratic processes. While it may not be as fun or cool as the aforementioned concepts, this side of crypto is still very important to understand, for any avid crypto enthusiast. And, <strong>this is where the concepts of AML &amp; KYC crypto reside<\/strong>, as well.<\/p>\n<p>So, in this section, we&rsquo;re going to talk about AML &amp; KYC in crypto. I will tell you what these terms mean, and explain them in the context of crypto. Then, we&rsquo;ll also talk about the one, major controversy that surrounds them - make sure to stick around for this!<\/p>\n<p><em>Now, then - let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"How Do KYC &amp; AML Work in Crypto? (Explained)\"\n title=\"How Do KYC &amp; AML Work in Crypto? (Explained)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: KYC & AML: The Key to Complying With Legal Industry Standards<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"KYC & AML: The Key to Complying With Legal Industry Standards\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"R7_AAWBb8N0\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">How Do KYC &amp; AML Work in Crypto? (Explained)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-do-kyc-aml-work-in-crypto-explained.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-do-kyc-aml-work-in-crypto-explained.jpg?tr=w-760 1000w\"\n alt=\"How Do KYC &amp; AML Work in Crypto? (Explained)\"\n title=\"How Do KYC &amp; AML Work in Crypto? (Explained)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"How Do KYC &amp; AML Work in Crypto? (Explained)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is KYC &amp; AML?<\/h2>\n<p>So, to start things off, let&rsquo;s first establish what does KYC mean in crypto, as well as where does AML come in, too.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: What is KYC&amp;AML?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_01.jpg/" alt=\"KYC crypto: What is KYC&amp;AML?\" width=\"1000\" height=\"967\" \/><\/p>\n<p>Both of the terms in question are abbreviations - KYC stands for <strong>&ldquo;Know Your Customer&rdquo;<\/strong>, while AML is <strong>&ldquo;Anti-Money Laundering&rdquo;<\/strong>. As you might have guessed already, both concepts are also related to cryptocurrency regulation.<\/p>\n<p>These terms are, admittedly, often used interchangeably. However, that&rsquo;s not entirely the correct thing to do - <strong>you can think of AML crypto as a broad set of rules, one of which is KYC<\/strong>. There are other things that make up the Anti-Money Laundering concept, but, in this section, we&rsquo;ll focus exclusively on KYC.<\/p>\n<p>So, as far as the Know Your Customer regulations are concerned, the idea behind them is quite simple, really. If you&rsquo;ve ever used a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized cryptocurrency exchange<\/strong><\/a>, you probably know the drill - once you register on the exchange, and set up your profile, you still won&rsquo;t be able to trade any cryptocurrencies until you&rsquo;ve provided the exchange platform with some personal identification data of yourself.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Know Your Customer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_02.jpg/" alt=\"KYC crypto: Know Your Customer.\" width=\"1000\" height=\"753\" \/><\/p>\n<p>That&rsquo;s exactly what KYC is, from the user&rsquo;s perspective - <strong>a form of identity verification<\/strong>, so that the exchange would know that it&rsquo;s actually YOU who&rsquo;s doing the trading and crypto acquisition. It usually includes a photo of your ID, a selfie, your residential address (and proof of residency, as well), information about your financial background, and so on.<\/p>\n<p>Note that it&rsquo;s possible to learn how to buy crypto without KYC, as well. This is usually done via <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized exchange platforms<\/strong><\/a>, or non-KYC crypto exchanges. That said, these exchanges are usually quite complex - if you want to learn more, check out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">the section dedicated to this topic<\/strong><\/a>!<\/p>\n<p><strong>KYC &amp; AML crypto compliance isn&rsquo;t exclusive to cryptocurrency exchanges, however!<\/strong> All mainstream financial platforms must abide by strict Know Your Customer regulations, and identify their clients upon them registering on said platforms.<\/p>\n<p>Here&rsquo;s an example, to allow you to understand this easier: imagine that you decide to open up a new bank account, with a completely different bank from your current one. You go to the bank&rsquo;s official website, fill out all of the boring paperwork, and set everything up. Now, part of your registration process will include KYC checks and verifications.<\/p>\n<p><strong>Why so? Well, there are a few big reasons. <\/strong>First, what if it&rsquo;s not you who&rsquo;s opening the bank account, but someone who&rsquo;s impersonating you, with fake documents and IDs? In real life, this is quite simple to determine - if you&rsquo;re opening a bank account online, though, it becomes much more difficult!<\/p>\n<p>Secondly, what if you have a lot of debt, or are someone who possesses a really rough financial past? The banking institution needs to know about all of these things, so that they could then partake in complex risk management processes, and act accordingly.<\/p>\n<p>Lastly, what if you&rsquo;re an actual wanted criminal? Allowing a person like that to open a bank account, fill it with funds, and then perform transactions could mean terrible things! All of these things - and many more - make KYC a crucial element in having a safe financial system (as much as it is possible).<\/p>\n<p>Everything that I&rsquo;ve just mentioned applies to cryptocurrency exchanges and other crypto-related services, as well. However, with crypto still being a bit Wild West-ish, <strong>the mandatory KYC verification checks present on exchange platforms are often less intrusive<\/strong> than those that you&rsquo;ll find with traditional financial institutions.<\/p>\n<p>In regards to AML - or, Anti-Money Laundering - in crypto, you can view it as a sort of an umbrella term for all of the things that exchange platforms do, in order to comply with the legal industry standards and requirements. So, in this case, <strong>KYC is just a single element of AML<\/strong> - in addition to that, cryptocurrency exchanges are constantly surveilling their client activities, flagging questionable actions, freezing accounts, complying with the FBI and other law enforcement, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Anti-Money Laundering.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_03.jpg/" alt=\"KYC crypto: Anti-Money Laundering.\" width=\"1000\" height=\"476\" \/><\/p>\n<p>Feeling confused about what is KYC in crypto, as well as AML crypto compliance? Think of it this way - <strong>if KYC is an apple, then AML is an entire apple pie<\/strong>. Apples are a key part of the recipe, yes, but there are plenty of other ingredients that go into making that pie!<\/p>\n<p>Both KYC &amp; AML are quite difficult topics, and require a lot of crypto knowledge in order to be grasped, fully. If you&rsquo;re looking to educate yourself more about all-things-crypto, check other sections on this Crypto 101 Handbook - there are chapters covering everything from the crypto basics, all the way to the more-advanced stuff!<\/p>\n<h2>The Big Controversy Surrounding Crypto KYC &amp; AML<\/h2>\n<p>Now that you have a pretty good idea of what are KYC &amp; AML, and how they work in the context of crypto, let&rsquo;s move on to discussing <strong>&ldquo;the big controversy&rdquo;<\/strong> that these concepts find themselves in, within the cryptocurrency space.<\/p>\n<p>Let me start off by asking you this - do you think KYC &amp; AML are important and needed, when it comes to crypto? Now, while I can&rsquo;t really hear your answer, I bet that everyone reading this section will have very different opinions on the topic.<\/p>\n<p>In order to understand this fully, though, we must take a step back and look at the core values of cryptocurrency technology. Specifically, I&rsquo;m talking about <strong>decentralization and anonymity<\/strong> - while you can <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//decentralized-blockchain/">check out a section<\/strong><\/a> on these two concepts, to put it short, they are at the very center of crypto tech, and are considered to be the key to crypto's success, in a very general sense.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Decentralization and anonymity.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_04.jpg/" alt=\"KYC crypto: Decentralization and anonymity.\" width=\"1000\" height=\"509\" \/><\/p>\n<p>Now, what&rsquo;s the opposite of decentralization and anonymity? That&rsquo;s right - identifying yourself to a centralized cryptocurrency exchange (or other services), and revealing personal information about yourself, your financials, and your life, in general.<\/p>\n<p>You can probably see where I&rsquo;m going with this.<\/p>\n<p><strong>Currently, there are two big groups of people in the crypto space <\/strong>- those who believe that crypto should remain completely decentralized and anonymity-preserving, and others who are a bit more liberal with their approach, and welcome KYC crypto and other regulations as a mandatory part of the &ldquo;crypto going mainstream&rdquo; process.<\/p>\n<p>That&rsquo;s kind of the kicker here, as well - it&rsquo;s very easy to say that <em>&ldquo;crypto should remain decentralized and regulation-free!&rdquo;<\/em>, without evaluating what this means, on a bigger scale. Essentially, <strong>if you were to take KYC and AML out of crypto<\/strong>, completely, you would be eliminating centralized exchanges and other services, a huge array of major projects, as well as basically destroying the possibility for this asset class to become mainstream and massively adopted, for the foreseeable future.<\/p>\n<p>Some people believe that this would essentially result in a <strong>cryptocurrency ice age<\/strong>. It&rsquo;s a pretty bold statement, that&rsquo;s true, but when you think about it, it makes sense - without any regulatory frameworks, crypto would be banned essentially everywhere, since no company or government would risk interacting with it, and being liable for any criminal activities that might be happening within the space.<\/p>\n<h2>The Future of KYC &amp; AML in Crypto<\/h2>\n<p>Now, I admit - I really threw you into the deep end there! But, as complex as this topic might appear to be, it&rsquo;s important to understand that <strong>things are NEVER black and white<\/strong> - KYC &amp; AML crypto exchanges, as well as other services, aren&rsquo;t an exception, either.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"KYC crypto: Crypto exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_kmc_and_aml_05.jpg/" alt=\"KYC crypto: Crypto exchanges.\" width=\"1000\" height=\"325\" \/><\/p>\n<p>Every single day, the global crypto community is looking for viable compromises - ways of how to increase the mass adoption of crypto and blockchain technology, while still retaining as much of the earlier-mentioned traditional values as possible. It&rsquo;s definitely not a simple problem to solve, and it also heavily depends on the region where you reside, as well! Some parts of the world are very open to crypto, while others aim to outright ban it.<\/p>\n<p>These days, the general global focus appears to lie on <strong>increasing the reputability and security features of cryptocurrency service providers<\/strong> - centralized exchanges, lending and borrowing platforms, interest-earning projects, and so on. This is because even those crypto enthusiasts who agree that some form of KYC is mandatory for the space are skeptical about just how safe their personal information is with said platforms.<\/p>\n<p>It makes sense, when you think about it! As I&rsquo;ve mentioned previously, traditional financial institutions are regulated rather strictly. With crypto exchanges, for example, <strong>the regulations are usually a bit more &ldquo;up in the air&rdquo;<\/strong>, which makes some exchange platforms become too relaxed on their policies. Then, if some security vulnerability occurs on one of such exchanges, the information you&rsquo;ve provided to the platform could be at risk of getting leaked and stolen!<\/p>\n<p>Once again - these are very serious, as well as difficult problems to solve! However, they do impact the general ecosystem of the cryptocurrency market, and can really influence new technologies and the prices of your favorite crypto assets, too. If you are looking to become knowledgeable with crypto, KYC &amp; AML issues are something that you really need to look into and understand!<\/p>","youtube_video":{"id":43,"channel_id":1,"sort":53,"video_title":"How Do KYC & AML Work in Crypto? (Explained)","description":"What are AML and KYC in crypto?\n\nWhile the topic of cryptocurrencies is one full of exciting prospects and innovative ideas, it also has a legal side to it, as well. When it comes to crypto legalities, you are bound to find concepts such as KYC & AML mentioned practically everywhere.\n\nIn this video, I am going to tell you about what is AML and KYC, in crypto. We\u2019ll explore both of these concepts, and how they manifest in regards to cryptocurrencies. I will also tell you about why KYC is such a controversial topic among crypto enthusiasts, and what the future of crypto regulations might look like, too. \n\nHave you ever used a cryptocurrency service that would require you to pass KYC & AML checks? Share your experiences in the comments below!\n\nVideo Time Table:\n\n0:00 Introduction to How Do KYC & AML Work in Crypto\n1:11 What is KYC & AML?\n5:01 KYC & AML Controversy in Crypto\n6:56 The Future of KYC & AML\n8:30 Wrap-up: How Do KYC & AML Work in Crypto\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#KYCCrypto #KYCMeaningCrypto #AMLCrypto","video_id":"R7_AAWBb8N0","duration":537,"view_count":401,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-do-kyc-aml-work-in-crypto-explained.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-12-13T15:21:21.000000Z","created_at":"2022-12-13T23:00:03.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":336,"chapter_id":3,"order":2,"featured_image_id":3071,"youtube_video_id":41,"author_id":1,"created_at":"2022-10-11T08:32:10.000000Z","updated_at":"2023-12-22T06:28:13.000000Z","slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","content":"<p>In this section, we are going to talk about the <strong>differences between DEXs VS CEXs<\/strong>, or decentralized and centralized crypto exchanges!<\/p>\n<p>When you&rsquo;re just starting out with crypto, one of the very first things that you&rsquo;ll probably think to do is find yourself an exchange platform - <strong>a place where you could buy, sell, or trade cryptocurrencies whenever you please<\/strong>. During your research, you will likely soon notice that there&rsquo;s a huge variety of different exchanges to pick from - that can be overwhelming!<\/p>\n<p>In addition to that, you might also see two large groups of people, arguing online - fans of CEXs, as well as avid DEX supporters. If all of that sounds like alien-speak to you, worry not - this is where I come in, to help you understand these complicated crypto concepts, easily!<\/p>\n<p>In this section, we&rsquo;re going to talk about the differences between DEXs VS CEXs. I will first tell you what those two terms mean, in general, and after that, we&rsquo;ll compare and contrast them, and figure out which of the two would fit your wants and needs the best!<\/p>\n<p><em>So, let&rsquo;s get to it!<\/em><\/p>\n<h2>What is a Centralized Crypto Exchange (CEX)?<\/h2>\n<p>Let's begin by jumping straight into the fun stuff, and talk about what are CEXs and DEXs, starting with the former.<\/p>\n<p><strong>What is a centralized crypto exchange, or a CEX?<\/strong> A really simple way of looking at it is this - most of the exchange platforms that you&rsquo;ve heard about are probably considered to be CEXs! These include <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//kraken/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Kraken<\/strong><\/a>, KuCoin, Coinbase, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized crypto exchange.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_01.jpg/" alt=\"DEX VS CEX: Centralized crypto exchange.\" width=\"1000\" height=\"736\" \/><\/p>\n<p><strong>&ldquo;Centralized&rdquo;<\/strong> is the key term that we want to look at here. Essentially, it means that all of these exchanges have a single, governing authority behind them - such as a company or a designated team of people looking over and managing all of the processes of the exchange.<\/p>\n<p>On top of that, CEXs are also known for how they deal with customers&rsquo; funds, as well as how they execute orders. <strong>Centralized exchanges use traditional order booking processes<\/strong> - you place an order to buy or sell some crypto, and it gets matched with another person&rsquo;s order of the opposite nature.<\/p>\n<p>To understand DEXs VS CEXs better, think of it this way - imagine that <strong>centralized exchanges are like ride-on-demand services<\/strong>. When you need to go to your friend&rsquo;s house, you can press a few buttons, and order a ride from one of the available drivers. In order to book an actual ride, however, you will need to first register on the app, and provide it with your personal details, as well as a valid payment method.<\/p>\n<p>So, while a service like this is very simple to use, and booking a ride takes only a few seconds to do, you need to, for a lack of a better term, &ldquo;dox&rdquo; yourself to the company - in other words, <strong>reveal a lot of personal information about yourself<\/strong>, before you can get a ride with one of their drivers.<\/p>\n<p>That&rsquo;s fine for a lot of people - at the same time, though, there are others who are less keen on handing over their names and payment details to a huge company. This group of people prefers to catch a taxi, the old-school way - find one in the nearest parking lot, or call up a taxi company and ask it to send a driver to their location.<\/p>\n<p>Of course, this isn&rsquo;t as convenient as clicking a few buttons on an app. However, it allows you to pay for your ride in cash, and preserve the privacy of your information. <strong>Essentially, this example works well to illustrate DEXs, or decentralized exchanges.<\/strong><\/p>\n<h2>What is a Decentralized Crypto Exchange (DEX)?<\/h2>\n<p>What is a decentralized crypto exchange? As the term itself implies, <strong>DEX platforms have no single governing authority behind them<\/strong>. So, there&rsquo;s no company that you could reach out to, and no CEO that you could look up, and blame if something went wrong.<\/p>\n<p>How does a DEX work, then? Well, essentially, most DEXs are governed by something called <strong>DAOs, or Decentralized Autonomous Organizations<\/strong> - a key point in our DEX VS CEX comparison!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Decentralized crypto exchange.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_02.jpg/" alt=\"DEX VS CEX: Decentralized crypto exchange.\" width=\"1000\" height=\"717\" \/><\/p>\n<p>DAOs are, admittedly, a really complex topic to get into. If you&rsquo;d like to figure out what is a DAO in a thorough way, there's a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-dao-in-crypto/">dedicated section<\/strong><\/a> for that in our Crypto 101 Handbook - check it out! For the sake of keeping things simple in this section, though, suffice to say that a DAO is a group of people who are fans of a specific cryptocurrency project, hold its token, and thus, have the right to vote on the direction of the project, its updates, and so on.<\/p>\n<p>So, essentially, <strong>decentralized exchanges are governed by the actual users of these platforms<\/strong>. The lack of a centralized authority allows for these platforms to retain a lot of privacy and anonymity features - which is, once again, what some people are looking for, to begin with.<\/p>\n<h2>CEXs VS DEXs - Which is the Better Option for You?<\/h2>\n<p>Continuing on, now that you have a pretty good idea of what are CEXs and DEXs, the big question that remains unanswered is this - <strong>which one should you use?<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized exchanges VS Decentralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_03.jpg/" alt=\"DEX VS CEX: Centralized exchanges VS Decentralized exchanges.\" width=\"1000\" height=\"265\" \/><\/strong><\/p>\n<p>Indeed, if we were to look at our earlier example with the drive-on-demand services and traditional taxis, the differences between the two are, admittedly, pretty negligible. Eventually, you would still end up driving to your friend's house - so, the end goal is the same.<\/p>\n<p>With DEXs VS CEXs, though, things aren&rsquo;t quite *that* simple. One of the first major differences that you will immediately notice between these two types of platforms has to do with usability.<\/p>\n<p>Imagine that <strong>centralized exchanges are like modern, automatic cars<\/strong>. The cars are full of cool features, and pretty simple to drive. On top of that, there are plenty of additional widgets that are there to help you out on the road - automatic parking, cruise control, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized exchange example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_04.jpg/" alt=\"DEX VS CEX: Centralized exchange example.\" width=\"1000\" height=\"1011\" \/><\/p>\n<p>With the top-tier CEXs, your cryptocurrency acquisition process is likely going to be super-simple, quick, and full of helpful guides along the way. Centralized exchanges tend to be very newbie-friendly, which is definitely a point worth considering!<\/p>\n<p>On the other hand, <strong>decentralized crypto exchange platforms are like older, manual transmission cars<\/strong>. They still serve the same function - to take you from point A to point B -, but you need to be much more involved, and understand how the car works, in the first place.<\/p>\n<p>This example illustrates the feeling that many people might have with DEXs. If you want to use a decentralized exchange, you need to already have a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-wallet/">cryptocurrency wallet<\/strong><\/a>, as well as some funds within it. Then, you need to be able to find the coins or tokens that you&rsquo;re looking to trade, verify their contract address, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Decentralized exchange example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_05.jpg/" alt=\"DEX VS CEX: Decentralized exchange example.\" width=\"1000\" height=\"1013\" \/><\/p>\n<p>It&rsquo;s a far more complicated process than just hopping on a centralized exchange platform, and buying your first crypto in a matter of minutes!<\/p>\n<p>The two other points that I&rsquo;ve just mentioned are equally as important to consider - the fact that, <strong>with DEX, you need to have a wallet of your own<\/strong>, as well as the lack of traditional payment support on such exchange platforms.<\/p>\n<p>As we&rsquo;ve established previously, centralized exchanges allow you to store your crypto assets on their wallets. If you&rsquo;d like to learn how that works, specifically, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">check out this section<\/strong><\/a>!<\/p>\n<p>My point here, though, is that, with DEXs, this feature is not available. <em>Now, is that a good or a bad thing? Well, it depends!<\/em> While storing your cryptocurrencies on an exchange is super-convenient, it&rsquo;s also a bit risky - what if the exchange gets hacked, and the hackers gain access to your assets?<\/p>\n<p>On the flip side, decentralized exchanges eliminate this issue, altogether. <strong>You are the only one responsible for what happens to your cryptos<\/strong> - even if the underlying exchange gets hacked, since you aren&rsquo;t storing your cryptocurrencies on it, your funds would technically be safe. That being said, some people just want to avoid the hassle that comes with managing a wallet of your own, or want to have the chance to communicate with customer support, if something goes wrong - a feature that, once again, isn&rsquo;t available with decentralized exchanges.<\/p>\n<p><strong>Traditional payment methods<\/strong> are another key point to mention, too. If you&rsquo;re looking to *BUY* cryptocurrencies with euros, US dollars, or any other traditional currency, then centralized exchanges are kind of your only option. That&rsquo;s because DEXs don&rsquo;t have this feature - remember, they are anonymity-driven! There wouldn&rsquo;t really be all that much anonymity if you&rsquo;d end up revealing all of your bank details to the exchange, now would it?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Traditional payment methods.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_06.jpg/" alt=\"DEX VS CEX: Traditional payment methods.\" width=\"1000\" height=\"664\" \/><\/p>\n<p>To add to all of that, comparing DEXs VS CEXs, you will also soon notice that the latter are a bit primitive, when compared to their centralized counterparts. While centralized exchanges aim to offer <strong>as many different features to their users as possible<\/strong> (just take a look at Binance, as an example), DEXs are really mostly focused on one, single thing - <strong>trading one crypto asset for another<\/strong>.<\/p>\n<p>Now, while it may seem like centralized exchanges are superior to DEXs in every single way, that really isn&rsquo;t the case. Remember - with a centralized crypto exchange, you will have to reveal a lot of information about yourself, in addition to your bank details, residential address, and so on. <strong>There is no anonymity<\/strong> - something that&rsquo;s still considered by many to be one of the core pillars of crypto and blockchain technology!<\/p>\n<p>Furthermore, <strong>CEXs are also usually very slow to add new coins &amp; tokens<\/strong>, and some platforms even have a habit of freezing their users&rsquo; funds, or halting their trading functionality for any and all reasons they see fit. None of these are issues that you would come across with a decentralized exchange!<\/p>\n<h2>Final Thoughts<\/h2>\n<p>Wrapping things up, the conclusion is actually quite simple - <strong>both centralized and decentralized exchanges have their own, specific pros and cons<\/strong>, and are both also very specific in the benefits that they provide. Industry newcomers and casual traders prefer using CEXs, due to the simplicity and feature variety that these platforms offer. Crypto veterans and hardcore enthusiasts, on the other hand, love and appreciate DEXs - here, they can trade anonymously, and access all of the newly-launched crypto coins and tokens.<\/p>\n<p>Now that you understand the basics of what is a decentralized and what is a centralized crypto exchange, you should be able to distinguish your preference, as well!<\/p>","definition":"Did you know that the reported trading volume of decentralized exchanges (DEXs) exceeded $1 trillion in 2021?","status":"published","meta_title":"DEX VS CEX: What's the Difference?","meta_description":"DEX VS CEX: How do they differ? Which one should you choose? Find answers to these and other questions you may have on this subject here!","meta_keywords":"dex vs cex, what is a decentralized crypto exchange, what is a centralized crypto exchange","modified_content":"<p>In this section, we are going to talk about the <strong>differences between DEXs VS CEXs<\/strong>, or decentralized and centralized crypto exchanges!<\/p>\n<p>When you&rsquo;re just starting out with crypto, one of the very first things that you&rsquo;ll probably think to do is find yourself an exchange platform - <strong>a place where you could buy, sell, or trade cryptocurrencies whenever you please<\/strong>. During your research, you will likely soon notice that there&rsquo;s a huge variety of different exchanges to pick from - that can be overwhelming!<\/p>\n<p>In addition to that, you might also see two large groups of people, arguing online - fans of CEXs, as well as avid DEX supporters. If all of that sounds like alien-speak to you, worry not - this is where I come in, to help you understand these complicated crypto concepts, easily!<\/p>\n<p>In this section, we&rsquo;re going to talk about the differences between DEXs VS CEXs. I will first tell you what those two terms mean, in general, and after that, we&rsquo;ll compare and contrast them, and figure out which of the two would fit your wants and needs the best!<\/p>\n<p><em>So, let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"DEX vs CEX: Which is Best for YOU? (Explained with Animation)\"\n title=\"DEX vs CEX: Which is Best for YOU? (Explained with Animation)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: DEX VS CEX: Two Sides of the Crypto Exchange Industry<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"DEX VS CEX: Two Sides of the Crypto Exchange Industry\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"x01npBGKiv4\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">DEX vs CEX: Which is Best for YOU? (Explained with Animation)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/dex-vs-cex-which-is-best-for-you-explained-with-animation.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/dex-vs-cex-which-is-best-for-you-explained-with-animation.jpg?tr=w-760 1000w\"\n alt=\"DEX vs CEX: Which is Best for YOU? (Explained with Animation)\"\n title=\"DEX vs CEX: Which is Best for YOU? (Explained with Animation)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"DEX vs CEX: Which is Best for YOU? (Explained with Animation)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>What is a Centralized Crypto Exchange (CEX)?<\/h2>\n<p>Let's begin by jumping straight into the fun stuff, and talk about what are CEXs and DEXs, starting with the former.<\/p>\n<p><strong>What is a centralized crypto exchange, or a CEX?<\/strong> A really simple way of looking at it is this - most of the exchange platforms that you&rsquo;ve heard about are probably considered to be CEXs! These include <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//binance/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Binance<\/strong><\/a>, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//goon//kraken/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Kraken<\/strong><\/a>, KuCoin, Coinbase, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized crypto exchange.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_01.jpg/" alt=\"DEX VS CEX: Centralized crypto exchange.\" width=\"1000\" height=\"736\" \/><\/p>\n<p><strong>&ldquo;Centralized&rdquo;<\/strong> is the key term that we want to look at here. Essentially, it means that all of these exchanges have a single, governing authority behind them - such as a company or a designated team of people looking over and managing all of the processes of the exchange.<\/p>\n<p>On top of that, CEXs are also known for how they deal with customers&rsquo; funds, as well as how they execute orders. <strong>Centralized exchanges use traditional order booking processes<\/strong> - you place an order to buy or sell some crypto, and it gets matched with another person&rsquo;s order of the opposite nature.<\/p>\n<p>To understand DEXs VS CEXs better, think of it this way - imagine that <strong>centralized exchanges are like ride-on-demand services<\/strong>. When you need to go to your friend&rsquo;s house, you can press a few buttons, and order a ride from one of the available drivers. In order to book an actual ride, however, you will need to first register on the app, and provide it with your personal details, as well as a valid payment method.<\/p>\n<p>So, while a service like this is very simple to use, and booking a ride takes only a few seconds to do, you need to, for a lack of a better term, &ldquo;dox&rdquo; yourself to the company - in other words, <strong>reveal a lot of personal information about yourself<\/strong>, before you can get a ride with one of their drivers.<\/p>\n<p>That&rsquo;s fine for a lot of people - at the same time, though, there are others who are less keen on handing over their names and payment details to a huge company. This group of people prefers to catch a taxi, the old-school way - find one in the nearest parking lot, or call up a taxi company and ask it to send a driver to their location.<\/p>\n<p>Of course, this isn&rsquo;t as convenient as clicking a few buttons on an app. However, it allows you to pay for your ride in cash, and preserve the privacy of your information. <strong>Essentially, this example works well to illustrate DEXs, or decentralized exchanges.<\/strong><\/p>\n<h2>What is a Decentralized Crypto Exchange (DEX)?<\/h2>\n<p>What is a decentralized crypto exchange? As the term itself implies, <strong>DEX platforms have no single governing authority behind them<\/strong>. So, there&rsquo;s no company that you could reach out to, and no CEO that you could look up, and blame if something went wrong.<\/p>\n<p>How does a DEX work, then? Well, essentially, most DEXs are governed by something called <strong>DAOs, or Decentralized Autonomous Organizations<\/strong> - a key point in our DEX VS CEX comparison!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Decentralized crypto exchange.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_02.jpg/" alt=\"DEX VS CEX: Decentralized crypto exchange.\" width=\"1000\" height=\"717\" \/><\/p>\n<p>DAOs are, admittedly, a really complex topic to get into. If you&rsquo;d like to figure out what is a DAO in a thorough way, there's a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-dao-in-crypto/">dedicated section<\/strong><\/a> for that in our Crypto 101 Handbook - check it out! For the sake of keeping things simple in this section, though, suffice to say that a DAO is a group of people who are fans of a specific cryptocurrency project, hold its token, and thus, have the right to vote on the direction of the project, its updates, and so on.<\/p>\n<p>So, essentially, <strong>decentralized exchanges are governed by the actual users of these platforms<\/strong>. The lack of a centralized authority allows for these platforms to retain a lot of privacy and anonymity features - which is, once again, what some people are looking for, to begin with.<\/p>\n<h2>CEXs VS DEXs - Which is the Better Option for You?<\/h2>\n<p>Continuing on, now that you have a pretty good idea of what are CEXs and DEXs, the big question that remains unanswered is this - <strong>which one should you use?<\/strong><\/p>\n<p><strong><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized exchanges VS Decentralized exchanges.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_03.jpg/" alt=\"DEX VS CEX: Centralized exchanges VS Decentralized exchanges.\" width=\"1000\" height=\"265\" \/><\/strong><\/p>\n<p>Indeed, if we were to look at our earlier example with the drive-on-demand services and traditional taxis, the differences between the two are, admittedly, pretty negligible. Eventually, you would still end up driving to your friend's house - so, the end goal is the same.<\/p>\n<p>With DEXs VS CEXs, though, things aren&rsquo;t quite *that* simple. One of the first major differences that you will immediately notice between these two types of platforms has to do with usability.<\/p>\n<p>Imagine that <strong>centralized exchanges are like modern, automatic cars<\/strong>. The cars are full of cool features, and pretty simple to drive. On top of that, there are plenty of additional widgets that are there to help you out on the road - automatic parking, cruise control, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Centralized exchange example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_04.jpg/" alt=\"DEX VS CEX: Centralized exchange example.\" width=\"1000\" height=\"1011\" \/><\/p>\n<p>With the top-tier CEXs, your cryptocurrency acquisition process is likely going to be super-simple, quick, and full of helpful guides along the way. Centralized exchanges tend to be very newbie-friendly, which is definitely a point worth considering!<\/p>\n<p>On the other hand, <strong>decentralized crypto exchange platforms are like older, manual transmission cars<\/strong>. They still serve the same function - to take you from point A to point B -, but you need to be much more involved, and understand how the car works, in the first place.<\/p>\n<p>This example illustrates the feeling that many people might have with DEXs. If you want to use a decentralized exchange, you need to already have a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-wallet/">cryptocurrency wallet<\/strong><\/a>, as well as some funds within it. Then, you need to be able to find the coins or tokens that you&rsquo;re looking to trade, verify their contract address, and so on.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Decentralized exchange example.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_05.jpg/" alt=\"DEX VS CEX: Decentralized exchange example.\" width=\"1000\" height=\"1013\" \/><\/p>\n<p>It&rsquo;s a far more complicated process than just hopping on a centralized exchange platform, and buying your first crypto in a matter of minutes!<\/p>\n<p>The two other points that I&rsquo;ve just mentioned are equally as important to consider - the fact that, <strong>with DEX, you need to have a wallet of your own<\/strong>, as well as the lack of traditional payment support on such exchange platforms.<\/p>\n<p>As we&rsquo;ve established previously, centralized exchanges allow you to store your crypto assets on their wallets. If you&rsquo;d like to learn how that works, specifically, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">check out this section<\/strong><\/a>!<\/p>\n<p>My point here, though, is that, with DEXs, this feature is not available. <em>Now, is that a good or a bad thing? Well, it depends!<\/em> While storing your cryptocurrencies on an exchange is super-convenient, it&rsquo;s also a bit risky - what if the exchange gets hacked, and the hackers gain access to your assets?<\/p>\n<p>On the flip side, decentralized exchanges eliminate this issue, altogether. <strong>You are the only one responsible for what happens to your cryptos<\/strong> - even if the underlying exchange gets hacked, since you aren&rsquo;t storing your cryptocurrencies on it, your funds would technically be safe. That being said, some people just want to avoid the hassle that comes with managing a wallet of your own, or want to have the chance to communicate with customer support, if something goes wrong - a feature that, once again, isn&rsquo;t available with decentralized exchanges.<\/p>\n<p><strong>Traditional payment methods<\/strong> are another key point to mention, too. If you&rsquo;re looking to *BUY* cryptocurrencies with euros, US dollars, or any other traditional currency, then centralized exchanges are kind of your only option. That&rsquo;s because DEXs don&rsquo;t have this feature - remember, they are anonymity-driven! There wouldn&rsquo;t really be all that much anonymity if you&rsquo;d end up revealing all of your bank details to the exchange, now would it?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"DEX VS CEX: Traditional payment methods.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//cex_vs_dex_06.jpg/" alt=\"DEX VS CEX: Traditional payment methods.\" width=\"1000\" height=\"664\" \/><\/p>\n<p>To add to all of that, comparing DEXs VS CEXs, you will also soon notice that the latter are a bit primitive, when compared to their centralized counterparts. While centralized exchanges aim to offer <strong>as many different features to their users as possible<\/strong> (just take a look at Binance, as an example), DEXs are really mostly focused on one, single thing - <strong>trading one crypto asset for another<\/strong>.<\/p>\n<p>Now, while it may seem like centralized exchanges are superior to DEXs in every single way, that really isn&rsquo;t the case. Remember - with a centralized crypto exchange, you will have to reveal a lot of information about yourself, in addition to your bank details, residential address, and so on. <strong>There is no anonymity<\/strong> - something that&rsquo;s still considered by many to be one of the core pillars of crypto and blockchain technology!<\/p>\n<p>Furthermore, <strong>CEXs are also usually very slow to add new coins &amp; tokens<\/strong>, and some platforms even have a habit of freezing their users&rsquo; funds, or halting their trading functionality for any and all reasons they see fit. None of these are issues that you would come across with a decentralized exchange!<\/p>\n<h2>Final Thoughts<\/h2>\n<p>Wrapping things up, the conclusion is actually quite simple - <strong>both centralized and decentralized exchanges have their own, specific pros and cons<\/strong>, and are both also very specific in the benefits that they provide. Industry newcomers and casual traders prefer using CEXs, due to the simplicity and feature variety that these platforms offer. Crypto veterans and hardcore enthusiasts, on the other hand, love and appreciate DEXs - here, they can trade anonymously, and access all of the newly-launched crypto coins and tokens.<\/p>\n<p>Now that you understand the basics of what is a decentralized and what is a centralized crypto exchange, you should be able to distinguish your preference, as well!<\/p>","youtube_video":{"id":41,"channel_id":1,"sort":55,"video_title":"DEX vs CEX: Which is Best for YOU? (Explained with Animation)","description":"DEX vs CEX - which exchange is better to use?\n\nThe world of cryptocurrency exchanges is often a complicated one - this is especially true if you\u2019re looking into some advanced exchange functionality. One of the bigger points of confusion for many people has to do with centralized and decentralized exchanges.\n\nIn this video, I will tell you about both of these types of crypto exchange platforms. You will learn what is a decentralized crypto exchange and what is a centralized crypto exchange, as well as the differences and similarities between them. Lastly, I will also tell you about the pros and cons of using both of these types of exchanges.\n\nHave you ever traded on centralized or decentralized exchanges? What are the main differences you\u2019ve noticed? Share your thoughts in the comments below!\n\nVideo Time Table:\n\n0:00 Introduction to DEX vs CEX\n1:05 What is a DEX & a CEX?\n4:03 Which Exchange Should You Choose?\n8:00 Wrap-up: Decentralized Crypto Exchange vs Centralized Crypto Exchange\n\nMore Related Videos:\n\n\ud83d\udd11 How do Cryptocurrency Exchanges Work?\nhttps:\/\/www.youtube.com\/watch?v=sRawseOB8TY\n\ud83d\udd11 Is Decentralized Anonymous Blockchain a Myth?\nhttps:\/\/www.youtube.com\/watch?v=pLmw3W9IRiE\n\ud83d\udd11 What Does Staking Mean in Crypto?\nhttps:\/\/www.youtube.com\/watch?v=irhlfrCrywo\n\ud83d\udd11 What is a DAO in Crypto?\nhttps:\/\/www.youtube.com\/watch?v=toSViQmtqFQ\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#DexvsCex #WhatisaDecentralizedCryptoExchange #WhatisaCentralizedCryptoExchange","video_id":"x01npBGKiv4","duration":529,"view_count":758,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/dex-vs-cex-which-is-best-for-you-explained-with-animation.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-11-09T15:45:16.000000Z","created_at":"2022-11-09T23:00:04.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":361,"chapter_id":3,"order":3,"featured_image_id":3072,"youtube_video_id":42,"author_id":1,"created_at":"2022-11-08T09:59:08.000000Z","updated_at":"2023-12-22T07:22:52.000000Z","slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","content":"<p>In this section, I&rsquo;m going to tell you about <strong>crypto day trading<\/strong>, or, to be more precise, - buying, trading, and swapping!<\/p>\n<p>Whenever we talk about performing transactions with crypto, there&rsquo;s a variety of terms that get thrown around. Some people &ldquo;trade&rdquo; cryptocurrencies, while others prefer to &ldquo;buy and sell them&rdquo;. Then, you also have the &ldquo;cool kids&rdquo; in the back, who &ldquo;only swap their cryptos, because that&rsquo;s the way to go&rdquo;.<\/p>\n<p>Are there any differences between any of these transactions, or is it all the same thing, but with different names? <strong>Well, that&rsquo;s exactly what I&rsquo;ll explain in this section!<\/strong><\/p>\n<p>So, we&rsquo;re going to talk about crypto day trading - in other words, buying, trading, and swapping cryptocurrencies. I&rsquo;ll explain each of these terms, on their own, and then we&rsquo;ll look into the actual similarities and differences between them. In the end, we will also talk about which of these activities might suit your specific wants and needs best!<\/p>\n<p><em>So, let&rsquo;s get to it!<\/em><\/p>\n<h2>Crypto Buying VS Trading VS Swapping: Definitions and Key Differences<\/h2>\n<p>Now, let's look into crypto day trading by first talking about <strong>&ldquo;buying&rdquo;<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Crypto Buying.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_01.jpg/" alt=\"Crypto day trading: Crypto Buying.\" width=\"1000\" height=\"576\" \/><\/p>\n<p>Admittedly, this is actually the simplest type of crypto transaction, of the three. If you&rsquo;ve ever transacted with crypto, there&rsquo;s a pretty good chance that you have bought cryptocurrency, at some point!<\/p>\n<p>The term &ldquo;buying&rdquo; essentially means that <strong>you&rsquo;ve paid money for the cryptocurrency that you&rsquo;ve acquired<\/strong>. Now, I must be specific here - &ldquo;money&rdquo;, as in, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fiat/">fiat (or traditional, government-issued) currency, such as the US dollar or the Euro.<\/p>\n<p>As you can imagine, buying and selling crypto is definitely a common practice, <strong>especially if you&rsquo;re not looking to become a day trader<\/strong>, and are only interested in accumulating as big of a portfolio as possible. The most common method of buying crypto these days is to visit a popular <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized exchange<\/strong><\/a>, register on it, add a payment method (such as a credit or debit card), and make your purchase.<\/p>\n<p><em>Simple, right? Well, yes, it really is!<\/em> This is why buying and selling crypto is so popular, especially among industry newbies - you don&rsquo;t need to worry about the technical stuff, complex gas fees, and so on.<\/p>\n<p>Now, when it comes to what is <strong>crypto trading<\/strong>, things are a bit more interesting.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Crypto trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_02.jpg/" alt=\"Crypto day trading: Crypto trading.\" width=\"1000\" height=\"637\" \/><\/p>\n<p>As the term might imply, when you trade cryptocurrency, you&rsquo;re essentially giving away your crypto for some other coin or token, instead of fiat money. If that sounds a bit confusing, here&rsquo;s an example:<\/p>\n<p>Imagine that your friend opened up an apple shop. You come to visit, and even though you don&rsquo;t really like apples, you&rsquo;re a supportive friend, and decide to get a few of them for yourself.<\/p>\n<p>Now, your friend allows you to either BUY the apples, or TRADE them. If you choose the prior option, you would simply pay your friend with money, and get the apples in return, as with most other shops in the world.<\/p>\n<p>However, if don&rsquo;t have any money with you, but have brought along a few pears, your friend would accept them for the apples, too. This would constitute a trade - <strong>you give an asset in order to receive an asset<\/strong>, both of which don&rsquo;t involve traditional money.<\/p>\n<p>Trading crypto is, honestly, a very common activity, as well. Think about it this way - once you&rsquo;ve bought some crypto on the exchange that I mentioned earlier, you might want to trade it for some other asset, on that same exchange. Most centralized exchanges have designated trading interfaces, where you can do just that.<\/p>\n<p>Now, this is where it gets a bit more tricky. Up to this point, we&rsquo;ve talked about centralized exchange platforms - however, crypto trading can be performed on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized exchanges<\/strong><\/a>, as well! Many traders actually prefer using DEXs, since they can often find small, less-known tokens on these platforms, and try to become early investors in said tokens.<\/p>\n<p>If centralized and decentralized exchanges are a mystery to you, there's a dedicated section on this very topic - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">check it out<\/strong><\/a>!<\/p>\n<p>In addition to that, you may also choose to both buy, as well as trade crypto in person - you would meet up with somebody, and perform the transaction that you both agreed upon. I wouldn&rsquo;t really recommend doing so, however, for obvious privacy and security reasons.<\/p>\n<p>Though <strong>why would somebody TRADE cryptocurrencies<\/strong>, when they can simply buy them? Isn&rsquo;t the latter much simpler and faster to do?<\/p>\n<p>Well, yes - but there are multiple reasons why you&rsquo;d choose the trading route.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Not all cryptocurrencies can be bought with fiat money.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_04.jpg/" alt=\"Crypto day trading: Not all cryptocurrencies can be bought with fiat money.\" width=\"1000\" height=\"696\" \/><\/p>\n<p>For starters, <strong>not all cryptocurrencies can be &ldquo;bought&rdquo; with fiat money<\/strong>. If you want to own some sort of a coin or token that doesn&rsquo;t have a fiat pair on the exchange that you&rsquo;re using, and can only be acquired by exchanging another crypto asset for it, you will likely need to perform a trade, in order to get it! Note that I&rsquo;m using the term &ldquo;exchanging&rdquo; interchangeably with &ldquo;trading&rdquo; - this is just to keep things simple and clear.<\/p>\n<p>Here&rsquo;s an example of what I just told you - imagine that you&rsquo;ve just bought your first <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin, on an exchange platform. Now, you also noticed that there&rsquo;s another token on that same exchange - we&rsquo;ll call it the <strong>X token<\/strong>. Now, this token only has a BTC pair - meaning, it can only be acquired by trading Bitcoin for it. Since, for some reason, you really want to become an owner of X token, you decide to enter a trade on the exchange, and trade some of your Bitcoin for the aforementioned X token. Simple!<\/p>\n<p>Next up, many individuals who partake in crypto trading do so in order to <strong>make a potential profit<\/strong>. These people are called &ldquo;day traders&rdquo; - they are constantly analyzing the market, and making educated guesses about which cryptocurrencies are going to rise or fall in price.<\/p>\n<p>Is crypto day trading worth it? Well, it&rsquo;s a super-complex process, and there are few day traders who are able to do it for a living - however, trading different cryptos is an essential activity here, as buying &amp; selling simply wouldn&rsquo;t suffice!<\/p>\n<p><strong>Crypto day traders<\/strong> are people who also participate in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-leverage/">leverage crypto trading<\/strong><\/a>, or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-margin-trading/">margin trading<\/strong><\/a>, as well. These are some advanced trading strategies that involve borrowing money from the exchange platform, in order to boost your position.<\/p>\n<p>With all of that said, let&rsquo;s look into the last term - <strong>crypto swapping<\/strong>.<\/p>\n<p>At first glance, crypto swapping might look almost identical to trading. However, there&rsquo;s one, big difference between the two - with trading, you enter an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-order-book/">order book<\/strong><\/a>, and wait for someone to match your trade. With swapping, on the other hand,<strong> everything happens instantly<\/strong> - you simply swap some of your crypto asset for another, of equal value.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Swapping VS Trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_03.jpg/" alt=\"Crypto day trading: Swapping VS Trading.\" width=\"1000\" height=\"549\" \/><\/p>\n<p><strong>Is swapping crypto a taxable event, then? <\/strong>Well, this is something that depends on both the region that you live in, as well as the tax laws in place, at the point in time when you&rsquo;re reading this section! It&rsquo;s important that you look into the intricacies of crypto day trading and swapping, tax-wise, before you perform any of these activities!<\/p>\n<p>Going back to crypto swapping, if you&rsquo;re feeling a bit confused, you can think about it this way - cryptocurrency trading is performed when you want to maximize your potential profit, and are speculating on how the market will act and react. On the other hand, crypto swaps are all about convenience - they are super-simple to execute, happen instantly, and allow you to exchange your crypto coin or token for a different asset, hassle-free.<\/p>\n<h2>The Use Cases of Crypto Buying VS Trading VS Swapping<\/h2>\n<p>At this point, you should have a pretty good understanding of the differences and similarities between crypto buying VS trading VS swapping. Now, one more thing that I&rsquo;d like to talk about is <strong>the actual use cases of these types of transactions<\/strong>.<\/p>\n<p>Or, in other words, in what situations would buying, trading, and swapping crypto be most beneficial?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: The use cases of crypto buying, trading, and swapping.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_05.jpg/" alt=\"Crypto day trading: The use cases of crypto buying, trading, and swapping.\" width=\"1000\" height=\"626\" \/><\/p>\n<p><strong>Starting off with crypto buying<\/strong>, this is quite self-explanatory. If you&rsquo;re just at the beginning of your crypto journey, and still haven&rsquo;t even registered on an exchange platform, it's highly likely that your very first mission is to acquire some coins or tokens for yourself. Unless you get lucky with an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-airdrop/">airdrop, or receive crypto as a gift from your friend, chances are that you&rsquo;ll end up buying the assets, with fiat money.<\/p>\n<p>Buying crypto is also the main activity that long-term investors participate in, too. Say, you&rsquo;re a fan of Bitcoin, and a huge believer that this specific crypto asset will grow in price, in the long run. In this situation, you&rsquo;d probably try to buy BTC quite often, and thus, grow your portfolio. Long-term investors usually don&rsquo;t really need any trading or swapping functionality - they just buy their asset, transfer it to their wallets, and forget it.<\/p>\n<p>On the flip side, though, <strong>crypto day trading<\/strong> is for those cryptocurrency enthusiasts who are a bit more involved with the market, or who want to acquire crypto coins and tokens that aren&rsquo;t listed on any of the big, centralized exchanges. Don&rsquo;t get me wrong, though - crypto trading isn&rsquo;t only for hardcore day traders and people who are trying to make a living out of it!<\/p>\n<p>Instead, trading is something that the vast majority of crypto-savvy people will surely participate in. This is especially true if you&rsquo;re looking to get more involved with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-defi/">DeFi, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-staking/">staking and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-yield-farming/">yield farming<\/strong><\/a>, and so on.<\/p>\n<p>Not familiar with the terms I just mentioned? Check out other sections on this Crypto 101 Handbook - it has all of those concepts explained in detail, and many more!<\/p>\n<p>Lastly, <strong>swapping<\/strong> is going to be best for anyone who&rsquo;s looking to exchange their cryptos in a super-quick and seamless manner. If you&rsquo;re not actively trying to make a profit, but instead find yourself in need of a different crypto asset, utilizing a cryptocurrency swap is probably the way to go!<\/p>\n<p>At the end of the day, however, it all boils down to the example I gave earlier - the one with your friend opening an apple shop. You can come in, and buy an apple, or trade something for that apple - I mean, you might even be able to do half an hour&rsquo;s worth of work, and get the apple as a reward!<\/p>\n<p>My point here is that <strong>there are multiple ways of how you can acquire a specific asset<\/strong>. The very same is true with crypto, as well - buying, trading, and swapping cryptocurrencies are all different types of transactions that you can utilize.<\/p>","definition":"Did you know that the difference between trading and swapping lies in the finality of a transaction?","status":"published","meta_title":"Crypto Day Trading: Different Strategies","meta_description":"Trying to figure out crypto day trading strategies? You're in luck! Here you'll find information about crypto buying, swapping, and trading.","meta_keywords":"crypto day trading, what is crypto trading, crypto swapping, leverage trading crypto, crypto margin trading, free crypto trading, is day trading crypto worth it, is swapping crypto taxable","modified_content":"<p>In this section, I&rsquo;m going to tell you about <strong>crypto day trading<\/strong>, or, to be more precise, - buying, trading, and swapping!<\/p>\n<p>Whenever we talk about performing transactions with crypto, there&rsquo;s a variety of terms that get thrown around. Some people &ldquo;trade&rdquo; cryptocurrencies, while others prefer to &ldquo;buy and sell them&rdquo;. Then, you also have the &ldquo;cool kids&rdquo; in the back, who &ldquo;only swap their cryptos, because that&rsquo;s the way to go&rdquo;.<\/p>\n<p>Are there any differences between any of these transactions, or is it all the same thing, but with different names? <strong>Well, that&rsquo;s exactly what I&rsquo;ll explain in this section!<\/strong><\/p>\n<p>So, we&rsquo;re going to talk about crypto day trading - in other words, buying, trading, and swapping cryptocurrencies. I&rsquo;ll explain each of these terms, on their own, and then we&rsquo;ll look into the actual similarities and differences between them. In the end, we will also talk about which of these activities might suit your specific wants and needs best!<\/p>\n<p><em>So, let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)\"\n title=\"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Crypto Day Trading: The Difference Between Buying, Trading, and Swapping<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"zAO1i0Ej_WE\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-day-trading-vs-swapping-whats-more-rewarding-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-day-trading-vs-swapping-whats-more-rewarding-animated.jpg?tr=w-760 1000w\"\n alt=\"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)\"\n title=\"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Crypto Buying VS Trading VS Swapping: Definitions and Key Differences<\/h2>\n<p>Now, let's look into crypto day trading by first talking about <strong>&ldquo;buying&rdquo;<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Crypto Buying.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_01.jpg/" alt=\"Crypto day trading: Crypto Buying.\" width=\"1000\" height=\"576\" \/><\/p>\n<p>Admittedly, this is actually the simplest type of crypto transaction, of the three. If you&rsquo;ve ever transacted with crypto, there&rsquo;s a pretty good chance that you have bought cryptocurrency, at some point!<\/p>\n<p>The term &ldquo;buying&rdquo; essentially means that <strong>you&rsquo;ve paid money for the cryptocurrency that you&rsquo;ve acquired<\/strong>. Now, I must be specific here - &ldquo;money&rdquo;, as in, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fiat/">fiat (or traditional, government-issued) currency, such as the US dollar or the Euro.<\/p>\n<p>As you can imagine, buying and selling crypto is definitely a common practice, <strong>especially if you&rsquo;re not looking to become a day trader<\/strong>, and are only interested in accumulating as big of a portfolio as possible. The most common method of buying crypto these days is to visit a popular <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-centralized-exchange-cex/">centralized exchange<\/strong><\/a>, register on it, add a payment method (such as a credit or debit card), and make your purchase.<\/p>\n<p><em>Simple, right? Well, yes, it really is!<\/em> This is why buying and selling crypto is so popular, especially among industry newbies - you don&rsquo;t need to worry about the technical stuff, complex gas fees, and so on.<\/p>\n<p>Now, when it comes to what is <strong>crypto trading<\/strong>, things are a bit more interesting.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Crypto trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_02.jpg/" alt=\"Crypto day trading: Crypto trading.\" width=\"1000\" height=\"637\" \/><\/p>\n<p>As the term might imply, when you trade cryptocurrency, you&rsquo;re essentially giving away your crypto for some other coin or token, instead of fiat money. If that sounds a bit confusing, here&rsquo;s an example:<\/p>\n<p>Imagine that your friend opened up an apple shop. You come to visit, and even though you don&rsquo;t really like apples, you&rsquo;re a supportive friend, and decide to get a few of them for yourself.<\/p>\n<p>Now, your friend allows you to either BUY the apples, or TRADE them. If you choose the prior option, you would simply pay your friend with money, and get the apples in return, as with most other shops in the world.<\/p>\n<p>However, if don&rsquo;t have any money with you, but have brought along a few pears, your friend would accept them for the apples, too. This would constitute a trade - <strong>you give an asset in order to receive an asset<\/strong>, both of which don&rsquo;t involve traditional money.<\/p>\n<p>Trading crypto is, honestly, a very common activity, as well. Think about it this way - once you&rsquo;ve bought some crypto on the exchange that I mentioned earlier, you might want to trade it for some other asset, on that same exchange. Most centralized exchanges have designated trading interfaces, where you can do just that.<\/p>\n<p>Now, this is where it gets a bit more tricky. Up to this point, we&rsquo;ve talked about centralized exchange platforms - however, crypto trading can be performed on <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized exchanges<\/strong><\/a>, as well! Many traders actually prefer using DEXs, since they can often find small, less-known tokens on these platforms, and try to become early investors in said tokens.<\/p>\n<p>If centralized and decentralized exchanges are a mystery to you, there's a dedicated section on this very topic - <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">check it out<\/strong><\/a>!<\/p>\n<p>In addition to that, you may also choose to both buy, as well as trade crypto in person - you would meet up with somebody, and perform the transaction that you both agreed upon. I wouldn&rsquo;t really recommend doing so, however, for obvious privacy and security reasons.<\/p>\n<p>Though <strong>why would somebody TRADE cryptocurrencies<\/strong>, when they can simply buy them? Isn&rsquo;t the latter much simpler and faster to do?<\/p>\n<p>Well, yes - but there are multiple reasons why you&rsquo;d choose the trading route.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Not all cryptocurrencies can be bought with fiat money.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_04.jpg/" alt=\"Crypto day trading: Not all cryptocurrencies can be bought with fiat money.\" width=\"1000\" height=\"696\" \/><\/p>\n<p>For starters, <strong>not all cryptocurrencies can be &ldquo;bought&rdquo; with fiat money<\/strong>. If you want to own some sort of a coin or token that doesn&rsquo;t have a fiat pair on the exchange that you&rsquo;re using, and can only be acquired by exchanging another crypto asset for it, you will likely need to perform a trade, in order to get it! Note that I&rsquo;m using the term &ldquo;exchanging&rdquo; interchangeably with &ldquo;trading&rdquo; - this is just to keep things simple and clear.<\/p>\n<p>Here&rsquo;s an example of what I just told you - imagine that you&rsquo;ve just bought your first <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin, on an exchange platform. Now, you also noticed that there&rsquo;s another token on that same exchange - we&rsquo;ll call it the <strong>X token<\/strong>. Now, this token only has a BTC pair - meaning, it can only be acquired by trading Bitcoin for it. Since, for some reason, you really want to become an owner of X token, you decide to enter a trade on the exchange, and trade some of your Bitcoin for the aforementioned X token. Simple!<\/p>\n<p>Next up, many individuals who partake in crypto trading do so in order to <strong>make a potential profit<\/strong>. These people are called &ldquo;day traders&rdquo; - they are constantly analyzing the market, and making educated guesses about which cryptocurrencies are going to rise or fall in price.<\/p>\n<p>Is crypto day trading worth it? Well, it&rsquo;s a super-complex process, and there are few day traders who are able to do it for a living - however, trading different cryptos is an essential activity here, as buying &amp; selling simply wouldn&rsquo;t suffice!<\/p>\n<p><strong>Crypto day traders<\/strong> are people who also participate in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-leverage/">leverage crypto trading<\/strong><\/a>, or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-margin-trading/">margin trading<\/strong><\/a>, as well. These are some advanced trading strategies that involve borrowing money from the exchange platform, in order to boost your position.<\/p>\n<p>With all of that said, let&rsquo;s look into the last term - <strong>crypto swapping<\/strong>.<\/p>\n<p>At first glance, crypto swapping might look almost identical to trading. However, there&rsquo;s one, big difference between the two - with trading, you enter an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-order-book/">order book<\/strong><\/a>, and wait for someone to match your trade. With swapping, on the other hand,<strong> everything happens instantly<\/strong> - you simply swap some of your crypto asset for another, of equal value.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: Swapping VS Trading.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_03.jpg/" alt=\"Crypto day trading: Swapping VS Trading.\" width=\"1000\" height=\"549\" \/><\/p>\n<p><strong>Is swapping crypto a taxable event, then? <\/strong>Well, this is something that depends on both the region that you live in, as well as the tax laws in place, at the point in time when you&rsquo;re reading this section! It&rsquo;s important that you look into the intricacies of crypto day trading and swapping, tax-wise, before you perform any of these activities!<\/p>\n<p>Going back to crypto swapping, if you&rsquo;re feeling a bit confused, you can think about it this way - cryptocurrency trading is performed when you want to maximize your potential profit, and are speculating on how the market will act and react. On the other hand, crypto swaps are all about convenience - they are super-simple to execute, happen instantly, and allow you to exchange your crypto coin or token for a different asset, hassle-free.<\/p>\n<h2>The Use Cases of Crypto Buying VS Trading VS Swapping<\/h2>\n<p>At this point, you should have a pretty good understanding of the differences and similarities between crypto buying VS trading VS swapping. Now, one more thing that I&rsquo;d like to talk about is <strong>the actual use cases of these types of transactions<\/strong>.<\/p>\n<p>Or, in other words, in what situations would buying, trading, and swapping crypto be most beneficial?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Crypto day trading: The use cases of crypto buying, trading, and swapping.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_buying_trading_swapping_05.jpg/" alt=\"Crypto day trading: The use cases of crypto buying, trading, and swapping.\" width=\"1000\" height=\"626\" \/><\/p>\n<p><strong>Starting off with crypto buying<\/strong>, this is quite self-explanatory. If you&rsquo;re just at the beginning of your crypto journey, and still haven&rsquo;t even registered on an exchange platform, it's highly likely that your very first mission is to acquire some coins or tokens for yourself. Unless you get lucky with an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-airdrop/">airdrop, or receive crypto as a gift from your friend, chances are that you&rsquo;ll end up buying the assets, with fiat money.<\/p>\n<p>Buying crypto is also the main activity that long-term investors participate in, too. Say, you&rsquo;re a fan of Bitcoin, and a huge believer that this specific crypto asset will grow in price, in the long run. In this situation, you&rsquo;d probably try to buy BTC quite often, and thus, grow your portfolio. Long-term investors usually don&rsquo;t really need any trading or swapping functionality - they just buy their asset, transfer it to their wallets, and forget it.<\/p>\n<p>On the flip side, though, <strong>crypto day trading<\/strong> is for those cryptocurrency enthusiasts who are a bit more involved with the market, or who want to acquire crypto coins and tokens that aren&rsquo;t listed on any of the big, centralized exchanges. Don&rsquo;t get me wrong, though - crypto trading isn&rsquo;t only for hardcore day traders and people who are trying to make a living out of it!<\/p>\n<p>Instead, trading is something that the vast majority of crypto-savvy people will surely participate in. This is especially true if you&rsquo;re looking to get more involved with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-defi/">DeFi, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-staking/">staking and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-yield-farming/">yield farming<\/strong><\/a>, and so on.<\/p>\n<p>Not familiar with the terms I just mentioned? Check out other sections on this Crypto 101 Handbook - it has all of those concepts explained in detail, and many more!<\/p>\n<p>Lastly, <strong>swapping<\/strong> is going to be best for anyone who&rsquo;s looking to exchange their cryptos in a super-quick and seamless manner. If you&rsquo;re not actively trying to make a profit, but instead find yourself in need of a different crypto asset, utilizing a cryptocurrency swap is probably the way to go!<\/p>\n<p>At the end of the day, however, it all boils down to the example I gave earlier - the one with your friend opening an apple shop. You can come in, and buy an apple, or trade something for that apple - I mean, you might even be able to do half an hour&rsquo;s worth of work, and get the apple as a reward!<\/p>\n<p>My point here is that <strong>there are multiple ways of how you can acquire a specific asset<\/strong>. The very same is true with crypto, as well - buying, trading, and swapping cryptocurrencies are all different types of transactions that you can utilize.<\/p>","youtube_video":{"id":42,"channel_id":1,"sort":54,"video_title":"Crypto Day Trading VS Swapping: What\u2019s More Rewarding? (Animated)","description":"What is crypto day trading, and how is it different from buying, trading, and swapping crypto?\n\nWhenever you\u2019re looking to get yourself some cryptocurrencies, chances are that you\u2019re going to be barraged with a variety of terminology - do you want to buy crypto? Or, perhaps, trade it? What do swaps have to do with any of it, to begin with?\n\nIn this video, I am going to tell you all about crypto day trading - specifically, buying, trading, and swapping. I\u2019ll explain each of these terms, separately, and we\u2019ll also talk about where all of these types of transactions are going to be best to utilize.\n\nHave you ever bought, traded, or swapped crypto? Share your experiences in the comment, below the video!\n\nVideo Time Table:\n\n0:00 Introduction to Crypto Day Trading, Swapping & Buying\n1:00 Crypto Buying Explained\n1:59 Crypto Trading Explained\n3:37 Crypto Day Trading VS Buying\n5:17 Crypto Swapping Explained\n6:20 Use Cases of Trading, Buying & Swapping\n8:30 Wrap-up: Crypto Day Trading, Swapping & Buying Compared\n\nMore Related Videos:\n\n\ud83d\udd11 How do Cryptocurrency Exchanges Work?\nhttps:\/\/www.youtube.com\/watch?v=sRawseOB8TY\n\ud83d\udd11 What is a Cryptocurrency\nhttps:\/\/www.youtube.com\/watch?v=eVLUrZtKhBk\n\ud83d\udd11 Crypto Fees Explained\nhttps:\/\/www.youtube.com\/watch?v=c1NItwMjjAs\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#CryptoDayTrading #WhatisCryptoTrading #CryptoSwapping","video_id":"zAO1i0Ej_WE","duration":529,"view_count":379,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-day-trading-vs-swapping-whats-more-rewarding-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-11-16T15:14:21.000000Z","created_at":"2022-11-16T23:00:03.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3072,"uuid":"0d9a8271-d249-4ac2-aa7e-0efee246f0e0","name":"crypto-day-trading-featurd-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/crypto-day-trading-featurd-image.jpg","path":"crypto\/storage\/optimized\/crypto-day-trading-featurd-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":37104,"width":768,"height":478,"custom_properties":null,"created_at":"2023-06-19T06:58:39.000000Z","updated_at":"2023-06-19T06:58:39.000000Z"}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published","modified_content":null},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published","modified_content":null},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published","modified_content":null},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published","modified_content":null},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published","modified_content":null},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published","modified_content":null},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","status":"published","modified_content":null},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published","modified_content":null},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="crypto-exchanges" current-section="crypto-day-trading">