Understanding Exchanges - the Crypto Marketplace

Exchanges are vital to the cryptocurrency ecosystem, offering a quick and efficient way to convert digital assets like TEXITcoin (TXC) into other digital currencies. Some exchanges, like Coinbase, even allow you to turn digital currencies into fiat "cash" money.

Exchanges can be first broken down into two categories: centralized and decentralized. Centralized exchanges (CEX) hold your digital assets and present combinations of trade opportunities (called Trade Pairs), like trading Bitcoin for Ethereum, or Litecoin for Tether. TEXITcoin is only traded on centralized exchanges due to the type of technology it uses.

Centralized exchanges can be broken down into tiers of size and quality. In the world today, there are really only TWO tier-1 exchanges: Coinbase (the largest in the USA) and Binance (the largest exchange in the world).

Tier 2 exchanges are also, generally speaking, reliable and as trustworthy as you can get in this realm. There are about 2 dozen tier-2 exchanges, and they are usually designed to service an exclusive or specific market. For example, UpBit exclusively trades with Korean customers, and only accepts KRW fiat currency for deposit. Generally speaking, it ranks #5 on the top list.

Every other exchange is considered tier-3 or worse. Use tier-3 exchanges extremely sparingly, as they are small, usually under-regulated and likely to fail at any moment.

Decentralized Exchanges (DEX) are used primarily for trading tokens and other Layer-2 cryptos, like SHIB and USDT. Since most tokens are built upon one of three main blockchains (Ethereum, Binance Smart Chain or Solana), these digital asset spinoffs enjoy the luxury of open trading on any decentralized exchange.

Today, trading gold or silver requires physically transporting your assets to a pawn shop or coin dealer, often selling below market value. In the digital realm, crypto exchanges eliminate that hassle, making it easier to quickly convert your digital holdings into something more usable.

For example, you might trade TXC for USDT, and USDT for Bitcoin (BTC), which is accepted at over 54 million businesses worldwide. Or, you could exchange TXC for hundreds of other cryptocurrencies, giving you access to the broader crypto economy. The more exchanges that list TXC and the larger the market of buyers and sellers, the more liquid TXC becomes. Higher liquidity means that you can quickly, easily and inexpensively turn TXC into cold, hard cash and get things that you want, even if those vendors don’t directly accept TXC. Greater liquidity also means you can quickly and easily trade TXC without significantly affecting its price. The TXC management team is actively working to add TXC more exchanges, trade pairs and liquidity, ensuring you have plenty of options for trading.

When trading TXC, it’s crucial to understand how pricing works: the current market price of TXC is determined by the buyers and sellers, reflecting the value of the most recent trade. Data aggregators like CoinMarketCap will present you with an average market price, based on data collected from participating exchanges. Even though the current market may display a certain price, what you actually get in trade for TXC can vary greatly based on the amount of TXC you want to trade and current market conditions. The price you receive depends on what buyers are willing to pay at that moment, which can change rapidly.

When trading, be sure to choose the right TYPE of order. 

Limit Orders - allows you to set the price at which you want to sell. It requires patience, but often results in the best deal if the market moves in your favor.

Market Orders - instantly liquidates your desired quantity of TXC at the current market price. Be cautious—if the market is volatile, you might get less than expected.

Because no one exchange will provide everything you desire for your crypto experience, it’s important to learn the basics of moving assets between exchanges.

For example, you will need to do this because the exchanges that support TXC primarily trade TXC for USDT (the Trade Pair), but they will not turn your USDT into cash. In fact, you’ll need to use an American-friendly exchange like Coinbase to perform that function. Therefore, you’ll use one exchange to convert TXC into USDT, then another exchange to convert USDT into US Dollars, and even place those US Dollars into your bank account. And this process is extremely important: until there’s a vibrant community of merchants and business owners that directly accept TXC, you’ll need to be comfortable with trading TXC for USDT, then moving USDT to Coinbase and “cashing out”.

Navigating multiple exchanges can be challenging and costly. Exchanges charge for deposits and withdrawals, and blockchain networks have their own transaction fees. When moving digital assets between exchanges, it’s best to use a fast and inexpensive cryptocurrency, like Litecoin (LTC), to transfer funds between exchanges. This minimizes costs and speeds up transactions.

Don’t leave funds on an exchange. Exchanges are great for trading, but most are not secure for long-term storage. Once your trade is complete, transfer your TXC or other digital assets back to your personal digital wallet or a Cold Storage Coin.

Familiarize yourself with reading exchange charts and understanding market dynamics.
We’ll provide videos and screenshots to guide you through setting up accounts and trading on supported exchanges. Using exchanges isn’t just about personal benefit; it also strengthens the TXC ecosystem. When you trade TXC, you contribute to its usage and utility. Active trading helps establish TXC as a viable currency, increasing its appeal and value in the market.

By understanding exchanges and using them wisely, you play a crucial role in TXC’s journey from a promising digital asset to a globally respected currency.