Understanding cryptocurrency exchanges

Tech

(NewsNation) — The collapse of FTX has put a spotlight on cryptocurrency, but how do cryptocurrency exchanges work?

Business Insider correspondent Laila Maidan breaks down the tech behind cryptocurrency and why the FTX collapse doesn’t mean doom for the entire industry.

FTX was an exchange, Maidan told NewsNation, used to facilitate trading cryptocurrency.

“So the collapse of FTX really has nothing to do with crypto itself. Because if that company was allowing customers to buy and sell stocks, then it would have impacted the stock market just the same way,” she explained.

Cryptocurrency is a new technology and Maidan said there’s no surefire way to invest without risk, but there are ways to be safer when investing, like using publicly traded exchanges such as Coinbase.

Watch the full video in the player above.

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