Exchanges play a central role in the bitcoin ecosystem. In addition to facilitating trade, they set exchange rates between bitcoin and fiat currencies such as the US dollar or the euro.
Rates can vary widely from exchange to exchange (which is where the arbitrageurs come in) and from minute to minute (where the other traders enter).
By now, long-time bitcoin traders are well acclimatised to this volatile landscape. Take, for example, the wild price swings at the middle of this […]
