Part 3/7:
In centralized exchanges like Binance, trades occur on an order book. This entails buyers and sellers placing orders, which are visible to all market participants. Each participant sets the price they are willing to buy or sell, and a transaction occurs when buyers and sellers meet at a specified price.
While effective for high-activity markets, this model comes at a cost. The centralized exchange takes a portion of the transaction fees from both sides (the buyer and the seller) as a service fee for maintaining the trading platform.