How does cryptocurrency exchange works?

Answer 1

Cryptocurrency is exchanged through whats called a block chain. It's a way of keeping the transaction secure while making sure that someone isn't trying to counterfeit the Cryptocurrency. Which with block chains it's the most secure way to transfer but also almost impossible to counterfeit. Basically its a way of transferring decentralized currency, meaning there is no need for a middle man its all peer to peer. And in order to get ahold of and change information on a blockchain you would need to own 51 percent of the information. But even so to many other blockchain peers would see the drastic change of information and branch off to a unaffected branch of the block chain. Being that trying to take and or counterfeit the currency would take way to much money and time there would be no one to try because it would only result in a negative return for the person trying to take the information. So basically the bigger the blockchain the more secure it becomes. Right now there are far more advantages for decentralized transactions than making them centralized. Who wants all their information centrally located when it can be spread between peers which makes it far less vulnerable while also keeping transaction costs far lower. It also allows for 24 / 7 transactions no need to wait for a bank to open.