What is a Crypto Exchange?

Now that you have a bit of knowledge about cryptocurrencies, let’s talk about how you can buy and sell them. We at Bitnomics would like to provide a comprehensive explanation as to what a crypto exchange really is, some basic mechanics around it, and why this is still one of the most convenient ways to gain exposure to cryptocurrencies today.

At its core, a crypto exchange is a platform, constructed with the purpose of enabling people (but not just people) to buy and sell digital assets. Bitnomics was founded in Estonia and is now licensed to provide exchange services on Bitcoin and Ethereum, two of the leading tokens in the world.

Before cryptocurrency exchanges were created, the only way to gain crypto exposure was via mining. People had to commit their computational power and receive rewards in exchange for that. This is no longer the case, mainly thanks to the work done by us and other brands in the industry.

The goal of a crypto exchange is to bring together buyers and sellers of crypto, creating a market. When you sign up for an account at bitnomics.co, it is possible to exchange fiat to crypto and vice-versa, taking advantage not just of competitive rates, but also of a user-friendly interface, which makes it easy for anyone to engage in this market.

A crypto exchange can be centralized, which basically means that the activity is overseen by an operator. Customers sign up, verify their account and proceed with the exchange operations in exchange for a fee. Alternatively, the exchange can also be decentralized – a relatively new model that no longer requires an operator or market makers.

Bitnomics aims to be a secure and quick solution for you to exchange crypto on, at any point in time, and that’s why the company continues to rely on a centralized model. It operates in line with the latest regulatory requirements set out by the authorities in Estonia, where the exchange is currently headquartered.

Using the services associated with an exchange comes with several costs. When accessing your account with any exchange, you will notice that there is a difference between the buying and selling price. This is the first cost involved in the transaction. Also, the exchange might charge you an additional fee, based on factors like the payment system chosen or the type of customer you are (individual, corporate, etc.). We’ve done extensive work to ensure that Bitnomics is an attractive place cost-wise and thus far clients seem to appreciate that.

The integrity of an exchange is directly linked to several factors. Regulatory compliance, transparency, and professional customer support generally suggest that a brand cares about the client’s experience. Bitnomics uses only reputable banks, payment services providers, and third-party service providers, to ensure that people using our platform are always protected from a financial point of view.

Online exchanges are advantageous because they put the cryptocurrency holder in charge of their own tokens. We at Bitnomics don’t offer wallets, so once you set up a transaction, we will send the cryptocurrency to a wallet address that you initially provide.

Risk disclosure

You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. The exchange of digital currency is considered a risky transaction with highly speculative outcomes. Bitnomics does not guarantee any profit from any activity associated with its services.

  • You agree that you are free to choose whether or not to use the service provided to you by Bitnomics and that you do so at your sole option, discretion and risk. You confirm that you understand and agree that the risks associated with the Services are acceptable by you, taking into account your objectives and financial capabilities.
  • You acknowledge that purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate on any given day. Because of such fluctuations, Cryptocurrency may gain or lose value at any time. Cryptocurrency may be subject to large swings in value and may even become absolutely worthless. Cryptocurrency trading has special risks not generally shared with official currencies, goods or commodities in a market. Unlike most currencies, which are backed by governments or other legal entities, or commodities such as gold or silver, Cryptocurrency is a unique kind of currency, backed by technology and trust. There is no central bank that can take corrective measures to protect the value of Cryptocurrency in a crisis or issue more currency.
  • You should carefully consider if holding digital currency is suitable for you depending on your financial circumstances. Dealing and exchanging in cryptocurrencies involves significant risk. The value of virtual assets / currencies has high volatility (value can increase and decrease significantly in a very short period of time and at any given moment). Such price fluctuations bring uncertainty. The value of a virtual currency and collapse in demand may be influenced by many factors, including irrational (or rational) bubbles, loss of confidence in the currency, changes in software development, government decisions, creation of a competitive currency, technical problems, political or non-political statements, statements of influencers and news and hacker-attacks.
  • Your virtual assets may be lost by losing your password, private key or other security code. Virtual currencies have special risks that are not generally shared with the official currencies, because they are not issued by governments, or with commodities or goods that are tangible or registered in the official registry. Virtual currencies are intangible, decentralized, digital assets, backed by technology and trust. No central bank or other institution can take any measures to protect the value of virtual currency. Virtual currencies are autonomous and largely unregulated system of firms and individuals issuing currencies. The risk of loss in buying, selling or holding virtual assets / currencies can be substantial. You should therefore carefully consider whether exchanging virtual assets is suitable for you in light of your financial condition. Be careful to keep your private keys, passwords, security codes and words for yourself and change them on a regular basis. Bitnomics uses payment providers for transfers of fiat money for rendering exchange services and operating with the fiat money, whereas assisting banks do not, by any means, represent a medium of exchange, transfer, withdrawal, deposit or other transaction in connection to virtual currencies.
  • You acknowledge and agree that Bitnomics does not act as a financial advisor, does not provide investment advice services or guidance, and any communication between you and Bitnomics cannot be considered as an investment advice. Without prejudice to our foregoing obligations, in asking us to enter into any transaction, you represent that you have been solely responsible for making your own independent appraisal and investigations into the risks of the transaction. You represent that you have sufficient knowledge, market sophistication and experience to make your own evaluation of the merits and risks of any transaction and that you received professional advice thereon. We give you no warranty as to the suitability of the Services and assume no fiduciary duty in our relations with you. We may provide information on the price, range, volatility of digital currency and events that have affected the price of digital currency, but this is not considered investment advice and should not be construed as such. Any decision to purchase or sell digital currency is your exclusive decision at your own risk and Bitnomics will not be liable for any loss suffered.
  • To the full extent permitted by the applicable law, you hereby agree to indemnify Bitnomics and its partners against any action, liability, cost, claim, loss, damage, proceeding or expense suffered or incurred if direct or not directly arising from your use of our website, your use of the service or from your violation of our terms and conditions.
  • Bitnomics is not liable for any price fluctuations in Cryptocurrency. In the event of a market disruption, Bitnomics may, at its discretion and in addition to any other right and remedy, suspend the Services. Bitnomics will not be liable for any loss suffered by you resulting from such action. Following any such event, when Services resume, you acknowledge that prevailing market rates may differ significantly from the rates available prior to such event.
  • Internet transmission risks. Client acknowledges that there are risks associated with using the Software and Services including, but not limited to, the failure of hardware, software, and internet connections. Client acknowledges that the Company shall not be responsible for any communication failures, disruptions, errors, distortions or delays client may experience when using the Software and Services, howsoever caused.