How does bitcoin exchange work?

[jritz2344973]

Exchanges deal with a large number of bitcoin transactions daily, which of these transactions are stored in the block? What is the deal inside the exchange?

[AGD]

Exchanges deal with a large number of bitcoin transactions daily, which of these transactions are stored in the block? What is the deal inside the exchange?

Daily trades don't find their way into the bockchain. Only deposits/withdrawal.
When you deposit your coins, they will be turned into numbers in a database, while the real coins either go into a hot or a cold wallet.
Trades only take place in this database of the exchange.

[bjjobg55206]

An exchange should consist of at least four parts: a brokerage system, a web system, an operations management system, and a wallet service.
1. Pending orders through the Web system into the matching system to match, generate trade
2.trade into the RDB database for users and operating system inquiries
3. The user initiates the charging request via the Web system into the operating system
4. The charge request is reviewed after entering the operational system and the charge status is updated according to the block data
5. Wallet service provides block data for operation system inquiries, as well as providing wallet address service

[ghost424]

We can find different Exchanging Websites that can trade a lot of cryptocurrency and it's not just Bitcoin that they are handling. They handle a lot of other coins and tokens that requires constant guidance and they are doing a good job of handling this tokens. They must first be trusted before they can accept different kinds of transactions. Learning about exchanges may take a lot of time, but once you learn on how to use it, you can teach somebody on how to carefully use this exchanges and take care of their personal accounts in different exchange websites. Example of this websites are Bittrex, Cryptopia, Binance, HitBTC and many more. All of this websites are trusted and the volume of exchanges in their websites may cause a slower time for receiving and giving transactions.

[Pursuer]

if you are using centralized exchanges such as the usual ones you have heard of: Coinbase/GDAX, Bitstamp, Bitfinex, Kraken,... then @AGD above is correct. only deposits/withdrawals make it to the blockchain.

but when you use the decentralized exchanges, you do make on-chain transactions.
that is of course unless we are not talking about a side chain something like inside Lightning Network. in that case only opening and closing the channel makes it to the blockchain, the rest of the transctions don't.

[fiulpro]

I guess you are asking how they work.
Well regularly there are numerous buying and selling orders on their site and what they do is..that they.. pick up the fee , from every buying and selling of Bitcoins and then thats their commission , that's how they earn.

Also most exchanges store their Bitcoins on blockchain only.

There are peer to peer exchanges (decentralized) and those exchanges that takes place on a particular big website.