Trading cryptocurrencies has become a global alternative to wealth creation, apart from offering liquidity in the space for users in the respective blockchain platforms. Several entities, ranging from small crypto exchanges to billion-dollar hedge funds, offer wealth management services both directly and indirectly for their clients, in the form of trading services.
With well over 2,000 cryptocurrencies floating on multiple blockchains, and access to purchase, use, and trade, the holding of cryptocurrencies has never been easier over the internet. With the highest market capitalization of all the cryptocurrencies crossing 500 billion US Dollars (USD) in 2018, cryptocurrency has been regarded as an alternative wealth creation medium in the long term.
Let's now understand how crypto trading actually works. The following diagram is helpful:
The preceding diagram is a generic demonstration...