Cryptocurrency or Crypto Asset is a digital asset. A crypto exchange is a digital marketplace where holders of digital assets can buy and sell. Presently the medium of exchange is Bitcoin versus other currencies.
This is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency. Different currency have different tickers e.g. Bitcoin is BTC, Ethereum is ETH and so on. The transfer happens from wallet to wallet which is used to store, send, and receive digital currency.
Most coins have an official wallet but there are a few recommended third party wallets as well. Presently these exchanges are not tied to any bank through which buying or selling funds can be routed.
It is seen that Bitcoin acts as the medium of exchange and the intervention digital currency. All these cryptocurrency transactions happen on a publicly distributed ledger for financial transactions, meaning a shared ledger. This network is designed to regularly update this spreadsheet, and this technology is referred to as blockchain.
Advanced nations like Switzerland, Japan and developing nations like Philippines have recognized Bitcoin as a legal form of payment paving way for more nations to follow suit. Multinational corporations like Cisco, IBM, Intel, J P Morgan and others are exploring uses of blockchain in supply chains and commercial business transactions.
However the KYC concerns on cryptocurrencies still exists and regulators are focused on the guidelines regarding modes of investment and purchase of cryptocurrencies, monitoring cryptocurrencies and the taxation of returns from cryptocurrencies.
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