The reason I am asking this question is simple. As a member of the crypto community, I have just asked myself what will happen if many people buy bitcoins for $4000 from an exchange and then try to sell them on $5000. How does the exchange protect itself from loses?
Coin-base doesn't make money from your bitcoins stored on their website.As the bitcoin price rises,the coins stored on exchange do rise in the value.All the numbers you see on your wallet on coinbase doesn't mean the coins are actually reserved for you.They keep recycling.
Can you help me to complete my research? I suggest that few people know that. Otherwise, anybody will have a clear idea how to create a cryptocurrency exchange.
It's no rocket science,you should google properly.