The process of trading cryptocurrency on an exchange is quite simple. Most exchanges use order books, which you can use to place both a limit trade order and initiate a market order. The liquidity of each exchange depends on its order book. The higher the liquidity, the smaller the spread between buy and sell orders.
Most exchanges only provide basic functions, which are sufficient panama number data for the average user. A small number of specialized exchanges offer trading instruments with high leverage, such as futures or perpetual swaps.
Brokers provide additional tools for margin trading, such as Contracts for Difference (CFD), derivatives, etc. Brokerage platforms also often offer clients special tools that help users in the trading process. These include technical analysis tools, such as various indicators, moving averages, etc., and even automated trading strategies and robots. All of them are aimed at risk management and improving trading results.
If the client trades CFDs, leverage can be used to expand financial opportunities. For example, if the selected cryptocurrency has a leverage of 1:2 for the CFD instrument, and the price moves by 5%, the CFD trader will make a profit of 10%, or, conversely, lose 10%. It all depends on the direction of the price movement and the type of the selected position. This means that when trading CFDs, you can quickly earn a large amount of money, or quickly lose it. That is why this instrument is recommended for experienced traders.
Crypto brokers also provide tighter spreads than crypto exchanges. This is the main reason for their popularity, especially among those who engage in margin trading.