Cryptocurrency exchanges and crypto wallets in the decentralized finance system
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Abstract
The key challenge for investors is to understand the basic mechanisms enabling the effective management and allocation of digital assets. The development of cryptocurrencies initiated the creation of a system of exchanges that act as intermediaries in the trading of digital assets and cryptocurrency wallets. Centralized cryptocurrency exchanges act as an intermediary between buyers and sellers and raise money through commissions and transaction fees. In turn, a decentralized exchange allows you to conduct peer-to-peer transactions directly from your digital wallet, without the involvement of an intermediary. Cryptocurrency wallets enable storage, exchange, and active participation in and support of the blockchain network, i.e. token staking. Consequently, the aim of this article is to present the specifics of the system of cryptocurrency exchanges and currency wallets. The research method used in this article includes the analysis of scientific literature and research on cryptocurrencies.
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