Trading & Market Mechanics
1. Exchange
A venue to buy/sell tokens.
Centralized Exchange (CEX): run by a company (CoinByte).
Decentralized Exchange (DEX): run by smart contracts (Uniswap, Curve).
2. Spot Trading
Buying or selling the underlying asset with immediate settlement.
3. Limit Order / Market Order
Limit: you set a price and wait.
Market: you execute immediately at current market prices.
4. Margin / Futures Trading
Borrowing funds or using derivatives to amplify gains (and losses).
5. Slippage
The difference between the expected price and the executed price, often due to low liquidity or fast price moves.
6. Market Making
Providing continuous buy/sell quotes to keep markets liquid and earn spreads/fees.
7. KYC (Know Your Customer)
Identity verification required by regulated platforms.
8. AML / CTF
Anti-Money Laundering / Counter-Terrorism Financing procedures and regulations.
Disclaimer
This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrencies are subject to market risk and volatility. Please consult a qualified advisor before making any investment decisions.
© 2025 CoinByte. Some content in this article may have been adapted or generated with the assistance of AI tools.
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