Hi It's Unicorn

The currency (such as USD, EUR,JPY etc.) that we use in daily life is called fiat currency. It’s issued by government or central bank. Cryptocurrency is not issued by any specific country or region. You can use it to exchange in the world with lower handing fees. It is also not necessary to exchange via banks. You can move your asset freely.  

The currency must have liquidity so the function of exchange is to increase the liquidity for cryptocurrency. The exchange provides a platform where you can get cryptocurrency trading. The exchange makes cryptocurrency trading volume more liquid, and reduces transaction costs, and makes the transaction process more secure.     

What are the general classifications of exchanges?

Before entering the registration process, you can first understand the common exchanges, which are divided into the following four types:

Fiat Currency Exchange

You need to use mainstream currency which is issued by government or central bank(such as USD, JPY etc.) to buy cryptocurrency on the platform. The disadvantage of this kind of exchange is that you have to convert the cryptocurrency to fiat money when you want to do crypto asset redeployment in the exchange, and then purchase the new cryptocurrency you want to buy via fiat currency.  You will pay two more handling fees.

Cryptocurrency Exchange

Compared with the above restrictions on fiat currency exchanges, the main function of cryptocurrency exchanges is that you can directly exchange one cryptocurrency to the other cryptocurrency. You can save additional time and handing fees to buy fiat currency when you want to do crypto asset redeployment.

Futures Exchange

Futures trading is a contract between buyers and sellers agreeing to purchase a specified "price" and "quantity" on a certain date in the future. It is a concept of "pay now and get the goods in the future".

For instance, today, the two parties of the transaction agreed that they promised to buy or sell “N” bitcoins at a price “P” on May 5th 2023, and perform delivery on that day.  Chicago Mercantile Exchange (CME) is the famous futures trading exchange.

Decentralized Exchange

The above three are all centralized exchanges, and people have also begun to dispute about the "decentralized" cryptocurrency managed by the "centralized" exchange. It lost the original intention of the blockchain. You can use your own cryptocurrency wallet to trade without using exchange wallet on the blockchain.