When we buy ETHERS at an exchange, how does it get added to the account in blockchain? I understand that the money (eg dollars) is for the exchange, but how does the exchange add it to the account in blockchain? Do they have special privileges on some special smart contracts which can add any number of ETHERS to an account?
closed as off-topic by Badr Bellaj♦, Rob Hitchens - B9lab, Nicolas Massart, Thomas Jay Rush, Jamie Hale May 2 '17 at 16:48
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "You should only ask practical, answerable questions based on actual problems that you face. Chatty, open-ended questions diminish the usefulness of our site and push other questions off the front page." – Rob Hitchens - B9lab, Nicolas Massart
TLDR Exchanges either have the ETH in their own accounts, or they go and buy it, again, in their own accounts. What they do in the fact, is keeping associated an ETH balance with your user account.