Connect with us

Crypto

A quick rundown on cryptocurrency exchanges in 2022

A cryptocurrency exchange allows you to convert your crypto into liquidity for use in various transactions.

guy trading on computer
Image: Unsplash

The question of how to exchange the cryptocurrency is faced by investors, traders, participants of Bitcoin cranes, and other persons earning money on the Internet. Also, many people are interested in the legality of such transactions, currency and commission rates.

Therefore, before exchanging Bitcoin, or another coin for fiat money, you need to study different ways thoroughly. Each option has its pros and cons.

At the moment, the user has several effective, fast, and profitable ways to exchange crypto at once: those are online exchangers, electronic payment systems, and stock markets.

Each service charges a commission (its amount depends on the type of organization). Still, at the same time, they guarantee the complete safety of funds and confidence in the contingent.

Method 1: Online exchangers

Online exchangers are analogs of ordinary exchange offices only on the Internet. They have the following advantages:

  • A large selection of currency pairs: Clients can exchange Bitcoins for dollars, euros or Ether, Ripple, and any other popular cryptocurrencies;
  • High speed of operations: With the automatic exchange of cryptocurrencies, the money is credited to an account instantly, and with the manual method, users have to wait only 5-30 minutes;
  • No strict limits: Some online exchangers are ready to transfer money in the amount of 1500 dollars or more at once.

The main disadvantage of the described method is high losses. As a rule, people have to pay a 4-10% commission on the transfer amount.

Method 2: Through stock markets

stocks app on phone
Image: Unsplash

A cryptocurrency exchange is a platform where one digital currency is traded and exchanged for another or different world currencies, including dollars, euros, rubles, yuan, etc.

In addition to mining — the original way of creating cryptocurrencies, exchanges are considered one of the ways to get them.

Crypto exchanges make it possible to exchange Bitcoin and other coins at the market rate. The commission is charged only for the deposit/withdrawal of funds and is 1.5-4%, depending on the chosen payment system. With this method of exchange, the user loses less money.

Method 3: Electronic payment systems

Some payment systems (Webmoney, Payeer, Perfect Money, Cryptonator, ePayments, AdvCash) allow storing not only fiat but also cryptocurrency on their addresses and carrying out internal exchange operations.

The main advantage of this method is to minimize the risk. As a rule, a cryptocurrency wallet can be protected using SMS confirmation, two-factor identification, and a one-time PIN code.

Today, cryptocurrency is confidently conquering the electronic world, and an obvious question arises before customers: where is it more profitable to change the earned funds?

The final choice of platform depends on several third-party factors. So, if you want to save as much as possible, go to a P2P. When you sell tokens or a small amount of cryptocurrency, choose exchanges.

Stationary and online exchangers, payment systems, and cryptomats are less profitable exchange methods. However, the user can be sure of the funds’ security since such establishments increase the price for the customers’ safety!

Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.

Editors’ Recommendations:

Chris has been blogging since the early days of the internet. He primarily focuses on topics related to tech, business, marketing, and pretty much anything else that revolves around tech. When he's not writing, you can find him noodling around on a guitar or cooking up a mean storm for friends and family.

More in Crypto