Most times people mistake cryptocurrency exchange and cryptocurrency investment platforms. Sometimes they refer to cryptocurrency exchange platforms as cryptocurrency investment platforms. Other times they refer to cryptocurrency investment platforms as cryptocurrency exchange platforms.
Well there is a big difference between crypto exchange platforms and crypto investment platforms. For starters they don’t even perform same operation and they both have different objectives.
Granted both are terms use in the cryptocurrency market but they both perform different duties in the cryptocurrency market. They do share some similarities though. In this article we’ll try to make you understand cryptocurrency exchange and cryptocurrency investment platforms.
What Are Cryptocurrency Exchange Platforms
Any website or platform online and offline(mostly online) that allows you to buy and sell cryptocurrency and also exchange one cryptocurrency to another cryptocurrency at the current market price is known as cryptocurrency exchange platform.
This means that cryptocurrency exchange platforms performs two important services. First they exchange your fiat or local money for cryptocurrency and vice versa. Second they can also exchange one cryptocurrency to another cryptocurrency e.g exchange bitcoin for ethereum or vice versa. All this is done with the current cryptocurrency market price.
It is important to note that all cryptocurrency exchange platform follow given policy outlined in the country of the operation. So please be sure to read their terms of service to be eligible to use their services. Some well known cryptocurrency exchange platforms are Coinbase, Remitano, Luno, Local Bitcoin, Paxful etc.
What Are Cryptocurrency Investment Platforms
A cryptocurrency investment platform is any website or platform online or offline(usually online) that gives you an agreed return of investment(usually investments are made in crypto) after a specified period of time.
This means that cryptocurrency investment platform accepts your cryptocurrency and they give you back with some profits after a period of time. The return of investment percentage depends on any package of your choice.
Most cryptocurrency investment platforms are however HYIP and hence they tends to shut down quickly and unexpectedly. So stay focused and be wise when selecting a cryptocurrency investment website or platform.
Difference Between Cryptocurrency Exchange And Cryptocurrency Investment Platforms
Cryptocurrency exchange platforms are responsible for buying and selling of cryptocurrencies and also exchange of different cryptocurrency using the current cryptocurrency market price. While cryptocurrency investment platforms accepts your crypto and promise to give you an agreed profit after a specified period of time.
Similarities Between Cryptocurrency Exchange And Cryptocurrency Investment Platforms
1. They both make use of cryptocurrencies in their activities.
2. They both posses the ability to hold cryptocurrencies(crypto wallets capability0
3. Both make use of the cryptocurrency market trends in making decisions.
4. They need each other in the cryptocurrency world. You buy crypto from exchange platforms and you invest those crypto in investment platforms. While the gains you get from the crypt investment you sell using the crypt exchange platform. Its one of the many circles of the cryptocurrency world.
Now you should have a better understanding of cryptocurrency exchange and cryptocurrency investment platforms. More explanation on cryptocurrency market terms will be explained in subsequent articles, follow us on Twitter “@MntrendsTech“, Facebook and Instagram “@Mntrendsblog” to get all latest updates.