a handful of dollars exchanging into handful of Cryptos with English text Above
2023-05-24clock10 minutes

Cryptocurrency has emerged as a significant phenomenon in recent years, attracting increasing interest from individuals seeking to trade digital assets. At the heart of cryptocurrency trading is the crypto exchange, which serves as the primary facilitator of these transactions.

In this blog, we aim to provide a straightforward explanation of what a crypto exchange is, the different types of crypto exchanges that exist, how they function, and the significant role they play within the realm of cryptocurrencies.

In addition, we will go through several examples of crypto exchanges - Cryptal, coinmania.ge and mycoins.ge.

What is Crypto Exchange?

A crypto exchange is indeed a digital platform that enables users to buy and sell cryptocurrencies. It operates similarly to a traditional stock market by providing a marketplace for participants to trade digital assets.

Crypto exchanges hold a crucial position in the crypto world due to their role in establishing liquidity and facilitating the exchange of various crypto assets. These platforms provide users with the ability to trade one cryptocurrency for another, enabling portfolio diversification and investment strategies. Additionally, crypto exchanges often support the buying and selling of cryptocurrencies using currencies such as TOGEL, TOUSD, or TOEUR.

How Does Crypto Exchange Work?

Indeed, the functionality of a crypto exchange is similar to that of a stock market. Users typically begin by creating an account on the exchange where they can deposit funds or crypto assets. With these funds, users can engage in cryptocurrency trading activities, such as buying and selling various digital assets. Additionally, crypto exchanges often provide users with the option to create digital wallets for storing their cryptocurrencies securely.

When a crypto trader places an order on a crypto exchange, the exchange pairs that order with corresponding orders placed by other traders who have opposing interests (i.e., buying or selling). The exchange acts as an intermediary, matching these orders to facilitate the transaction. Traders gather on the crypto exchange, creating a vibrant marketplace where buying and selling activities take place. The exchange plays a vital role in ensuring fair and efficient trading by matching orders and executing transactions in a transparent manner. By bringing together a diverse range of traders, the exchange enhances liquidity and enables participants to engage in cryptocurrency trading with ease.

Crypto exchanges typically charge fees for their services, and the specific fee structure can vary from one exchange to another. These fees are often a small percentage of the total transaction amount, whether it involves cryptocurrencies or fiat currencies. The fee serves as compensation for the exchange's operational costs and the services provided, including maintaining the trading platform, ensuring security measures, and facilitating transactions.

For many traders, the commission plays a significant role in selecting a preferred crypto exchange.

What types of Crypto Exchanges are there?

In the diverse world of cryptocurrencies, where a trader can trade a large number of crypto assets, crypto exchanges do not suffer from scarcity either. There are several types of them: centralized crypto exchange (CEX), decentralized crypto exchange (DEX) and hybrid crypto exchange.

What is a Centralized Crypto Exchange?

Centralized crypto exchanges (CEXs) are the most prevalent type of platform in the cryptocurrency ecosystem. They operate similarly to traditional financial institutions, functioning as intermediaries between buyers and sellers of crypto assets. CEXs typically have a central authority that manages the exchange and handles various aspects, including order matching, transaction execution, and fund custody.

When placing an order, i.e. when creating a desired buy or sell order, the crypto exchange stores the users' coins and cash, and when the transaction is completed, it provides the desired asset to all parties, whether it is a digital asset or GEL, USD or EUR.

What is Decentralized Crypto Exchange?

Decentralized crypto exchanges (DEXs) are peer-to-peer platforms where transactions occur directly between users without the involvement of intermediaries.

Without an intermediary, You may be wondering how one trades on a crypto exchange? Eazy! Traders trade cryptocurrencies with the help of smart contracts.

DEXs leverage smart contracts to establish predetermined conditions for asset transfers. These automated agreements eliminate the potential for fraud or asset loss. By utilizing smart contracts, DEXs ensure that transactions occur seamlessly and securely, without the need for intermediaries.

What is Hybrid Crypto Exchange?

Hybrid crypto exchanges combine the best features of both platforms - decentralized and centralized crypto exchanges. They use smart contracts to ensure security, higher than in the case of centralized exchanges (CEXs) and, at the same time, greater liquidity than decentralized exchanges (DEXs).

Why is Crypto Exchange Important?

Exchanges play a crucial role in the crypto economy by providing liquidity to the market. Liquidity refers to the ease and speed at which assets can be bought or sold. High liquidity indicates the presence of a large number of buyers and sellers in the market or on a specific crypto exchange, resulting in a more efficient exchange of commodities and digital assets.

Crypto exchanges play a significant role in establishing and influencing cryptocurrency prices. The price of a cryptocurrency on an exchange is primarily determined by the interaction of supply and demand within that specific exchange's marketplace.

Since exchanges operate independently and have their user base, order books, and trading volumes, the prices of cryptocurrencies can vary between different exchanges.

First Georgian Crypto Exchange?

In Georgia, there are various crypto platforms available, including Cryptal, which is the first Georgian crypto exchange. Cryptal is known for its user-friendly interface and high liquidity, making it suitable for both novice traders and experienced crypto investors. Additionally, it serves as a platform for individuals seeking to convert their crypto assets into fiat currency.

There are 26 cryptocurrencies available on Cryptal, including popular and major crypto assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and USDT.

Cryptal offers three primary methods for buying and selling cryptocurrencies: Spot Trading, Instant Trade, and OTC (Over-The-Counter) Privat Broker.

Spot Trading: Spot Trading involves users placing buy or sell orders on the exchange. These orders are listed on the order book and are matched with corresponding orders from other users. Once a suitable match is found, the transaction is executed, and the assets are exchanged at the agreed-upon price. Spot Trading provides users with the ability to set specific prices and execute trades according to their preferences.

Convert: Cryptal's Instant Trade feature allows users to buy or sell cryptocurrencies instantly at the prevailing market price. Instead of placing specific orders and waiting for a match, users can initiate an instant trade and receive the current market price for their desired crypto asset. Instant Trade provides convenience and speed for users who want to execute transactions quickly without waiting for order matching.

OTC (Privat Broker): Cryptal also offers an OTC (Over-The-Counter) Privat Broker service, which caters to users who prefer personalized assistance and larger trade volumes. With the OTC service, users can directly trade with a dedicated broker from Cryptal, who facilitates the buying and selling process off the public exchange. This service suits users with substantial trade sizes or specific trading requirements.

Cryptal recognizes the importance of supporting traditional currencies to provide users with flexibility in purchasing cryptocurrencies. Cryptal supports Georgian Lari (₾), US Dollar ($), and Euro (€) as top-up balance options and withdrawal options, which then automatically converts into TOGEL, TOUSD, and TOEUR. This allows users to fund their accounts or withdraw funds in their preferred currency.

If you want to make a deposit on Cryptal, you can use a bank transfer or Visa/Mastercard cards. The same applies to withdrawing your assets.

What about Other Georgian Crypto Platforms?

Crypto exchanges are quite popular and there are plenty of alternatives to suit your trading style.

Coinmania.ge is a crypto exchange platform in Georgia that facilitates the buying and selling of popular cryptocurrencies like Bitcoin, Ethereum, Shiba Inu, and more. It provides users with an opportunity to participate in the crypto market and trade these digital assets.

If you are further interested in what features Coinmania offers and want to compare the two crypto exchanges, this blog is for you:

Users also have the option to start buying crypto at mycoins.ge, where popular coins and crypto-assets can also be purchased using GEL and USD.

Mycoins is a platform that primarily offers Instant Trade functionality for cryptocurrencies such as Bitcoin, Litecoin, Dogecoin, and other popular digital assets. Unlike traditional exchanges, Mycoins does not provide full-fledged trading features like order books or limit orders.


Crypto exchanges play a significant and critical role in the crypto world. They offer users liquidity and a choice between several cryptocurrencies.

There are many factors to consider when choosing the proper crypto exchange for you: how to buy and sell cryptocurrency, what fiat currencies are supported, what fees are there, etc. However, before that, it is essential to understand what a crypto exchange is in general and how it works.

Wish you successful Trading!