What is the difference between a broker and exchange in cryptocurrencies?
A broker is a person or company that acts as an intermediary between the buyer and the seller. Broker not only make sense in the economic market, but also in the real estates market, the commodity market, the art market, and so on.
Each broker has its own software through which prices can be informed and buying and selling orders can be transferred to the broker. A broker usually performs a set of necessary activities between the buyer and the seller according to the previous responsibility assigned to him by the buyer and the seller in order to exchange the subject matter of the transaction and its main and ancillary costs in specific and safe conditions.
Brokers find sellers or buyers who alone have large amounts of cryptocurrency and pair them up for sale. This process is more flexible, easier, and generally faster than an exchange.
Exchange literally means a place for trading all kinds of money. Its emergence as a profession can be attributed to the need of people to determine the accuracy and weight of various coins that were common in previous centuries.
Conventional cryptocurrency exchanges work like a stock exchange, where buyers and sellers trade based on the current price of cryptocurrency.
Exchanges usually charge a percentage for each transaction. In exchanges, some people may convert Fiat currency into cryptocurrency, or vice versa, while others only exchange different cryptocurrencies.