The vast majority of all operations with the cryptocurrency is carried out on exchanges with multi-million turnover. And what are the exchangers offering promising conditions for buying / selling the cryptocurrency? How do they differ from exchanges? We will consider it in this material.
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- What is the exchanger?
- How does the online exchange of cryptocurrency work?
- Principal differences between the stock exchange and the exchanger
- Where is it better to buy/sell cryptocurrency
- Advantages of online exchangers
- What should a safe exchanger look like?
1. What is the exchanger?
The name gives the answer – it is the place where you can exchange the cryptocurrency for fiat or for other coins. There are two types of exchangers:
- Online. This is a site where a visitor can make a purchase / sale of a cryptocurrency at a fixed rate.
- Offline. Here, the currency can be exchanged for real money, having received a cache in the specified place – at the checkout or office.
Exactly the same is the work of known to all exchangers, working exclusively with fiat money.
2. How does the online exchange of cryptocurrency work?
The main condition for someone who wants to buy a coin is the presence of a cryptowallet. If any, the procedure is simple:
- Simple and not always compulsory registration;
- In the menu, find the currency you want to buy or sell;
- Fill in the fields with the requisites;
- Agree with the exchange rules and click “Exchange”.
You will be notified of the operation by e-mail notification. Cryptocurrency exchangers work in different modes:
- Manual mode assumes that each operation is processed by an operator. It’s always long.
- In semi-automatic mode, Bitcoin exchange can last half an hour or more, depending on the exchanger.
- In the automatic mode, currency cranes operate with immediate withdrawal of funds.
The cryptocurrency exchanger has little to do with a stock exchange, with its adjustments, quotations, orders. But the investor is more interested in the price than the technical side of the exchange.
3. Principal differences between the stock exchange and the exchanger
At the exchange there are traders who determine the price of coins. In the exchanger, trading is inappropriate, because the course is determined by the owner of the resource. Is it good or bad?
On the one hand, there is no place for exchange speculation on the exchanger. On the other hand, there is always a real coin price on the stock exchange, which rarely coincides with the exchanger’s rate.
4. Where is it better to buy/sell cryptocurrency
If it is a matter of profit, then on the exchange with its market rate. The owner of the exchanger, of course, is guided by stock quotes, but his rate is always higher. By the way, the commission in the online cryptocurrency exchanger can differ from the stock exchange in the tens, and even hundreds of times.
In terms of convenience, the exchange also looks preferable, as it works around the clock without days off, which cannot be said about many exchangers.
An important point is the amount of currency reserves. If there are no problems for an exchange with a multimillion-dollar daily turnover to make almost any transaction , then a poor exchanger can sometimes offer to wait an hour or two before the required amount of bitcoins or fiat appears. The security of the exchangers also raises doubts. If the top-level exchange is guaranteed to be protected against cyber attacks, then how this issue is decided by the owner of the exchanger is known only to him.
5. Advantages of online exchangers
All of the information mentioned above does not exclude the essential advantages of the cryptocurrency exchangers:
- User-friendly interface. Registration procedure is extremely simplified, and often completely absent.
- Any exchanger is fully integrated with all popular payment systems.
- For registered customers, there is a program that provides an incremental discount for each subsequent exchange.
But all these advantages do not matter if the exchanger offers a disadvantageous course.
6. How should a safe exchanger look like?
A successful exchanger must work at least for a year. To be confident in successful exchange, you should take an interest in reviews on independent resources. In view of the volatility of the cryptocurrency, it is necessary to give preference to exchangers with automatic or semi-automatic mode. A good exchanger has enough reserves of cryptocurrency and fiat, it and its support work around the clock.
Online exchanger is a fast service for buying or selling coins. But it is completely unfit for trader strategies, since its commission can eat all the potential profits.
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