What are the differences between a cryptocurrency exchange and exchangers. Advantages and disadvantages
When the question of purchasing a cryptocurrency comes up, a beginner sees many different options in front of him. Cryptocurrency exchanges and exchangers are the most popular of them. Indeed, they are functional and at the same time easy to learn, offer a wide range of payment directions. Today the editorial staff of Btcnewsweb.com will consider what is the difference between a crypto exchange and an exchanger and which option should be chosen in the end. The profitability of the exchange, convenience, speed and requirements for the user can be considered as the parameters of the assessment.
What is a cryptocurrency exchange
A crypto exchange is a trading platform that is essentially similar to a stock exchange, but specializes in cryptocurrencies. Allows you to sell and buy coins for fiat or exchange some cryptocurrencies for others.
Examples of popular cryptocurrency exchanges:
They are all arranged in about the same way. The user needs to register and replenish the account, and then create orders in the trading terminal to buy the required assets. The nuance is that in order to enter fiat, most exchanges require verification (this is due to the rules established by regulators).
The purchase can be carried out in one of three formats:
- Direct purchase from the card. The user pays for cryptocurrency with a bank card through a connected payment provider, for example, Simplex. The purchased assets are credited to the exchange account and can be used for trading.
- Fast exchange. First, the user replenishes the account, for example, in rubles, and then, through the quick exchange form, changes them to cryptocurrency. This automatically sets the current market rate.
- Create an order. Allows you to make a deal at a better price. When creating a limit order, not only the amount of the purchased / sold asset is indicated, but also the desired price. The deal goes to the list of pending limit orders and will be executed immediately at the moment of the appearance of the opposite order under the same conditions.
What is a cryptocurrency exchanger
An exchanger is a platform specifically focused on exchanging different fiat and digital currencies for each other. Does not provide an opportunity to regulate the price by creating orders. The exchange is carried out strictly at the rate set by the service. This rate usually already includes the commission for the exchanger itself.
To choose an exchanger where at the moment the most favorable rate for the trade direction you are interested in, you can use the monitoring, for example, BestChange. To do this, it is enough to select the given and received currency, and the service will immediately provide a list of exchangers working with this direction, and arrange them according to the rate.
The exchange process itself is usually standard:
- The choice of currencies to be given and received.
- Entering the requested details – card / wallet number from which payment will take place, wallet address for enrolling cryptocurrency, etc.
- Entering the exchange amount. The course will be automatically calculated. If additional commissions are charged in this area, they will also be notified.
- Creation of an application. From this moment there is a countdown (15-20 minutes), during which you need to pay for it.
- Payment for the application by transferring fiat or cryptocurrency using the issued requisites. Do not forget to click “I paid” after completing the transfer.
- Waiting for a response payment (depending on currencies and payment systems, it may be instantaneous or take 20-40 minutes).
In some cases, this procedure includes additional steps, such as verifying a bank card or checking an electronic wallet.
Which is better – an exchange or an exchanger
It’s safe to say that everything depends on the situation. In general, exchanges are more suitable for high-frequency trading with daily transactions, and exchangers are more suitable for a single purchase, for example, for the purpose of long-term investment. For clarity, consider the strengths and weaknesses of both methods.
Advantages and disadvantages of exchanges
✅ A wide selection of cryptocurrencies, you can find not only top-end, but also rare assets.
✅ The most profitable way to exchange is using limit orders.
✅ Extensive functionality for managing funds, you can receive passive income using staking and landing programs.
✅ Regular promotions and contests.
✅ Exchanges are aimed at maintaining a constant audience, therefore they actively stimulate not only the influx of new customers, but also the retention of the interest of old ones.
✅ The best price offers for buying and selling.
✅ Minimum spread.
✅ High liquidity.
✅ Many exchanges are regulated and licensed.
✅ Custodian exchanges provide wallets for storing cryptocurrencies. For a hold, this option is not very suitable; after the purchase, it is better to transfer assets to a cold wallet.
❌ A small selection of fiat payment methods.
❌ To pay with fiat money, verification is usually required.
❌ For beginners, can be problematic to master.
❌ Due to the heavy workload, technical support does not respond instantly.
Advantages and disadvantages of exchangers
✅ They are arranged very simply.
✅ Large selection of fiat payment methods.
✅ With the help of monitoring, you can quickly find the best course.
✅ Identity verification is not required.
✅ Fast technical support.
✅ Many exchangers offer cumulative discount systems.
❌ The exchange is more expensive than the exchange. Commissions are included in the exchange rate.
❌ A small selection of cryptocurrencies, usually no more than 20 of the most popular ones.
❌ Most of the traditional exchangers are unregulated and not registered anywhere.
❌ There is no information about the employees and the management of the exchanger.
Where else can you buy or sell cryptocurrency
In addition to cryptocurrency exchanges and exchanges, there are the following methods of exchanging cryptoassets:
- Electronic payment systems (AdvCash, Payeer, Capitalist and others).
- Crypto wallets of various types (mobile, desktop, online platforms, hardware).
- Bots in the Telegram messenger.
- p2p platforms like Binance P2P or Cryptolocator.
Finally, if you live in a big city, there are probably ATMs nearby where you can buy cryptocurrency with cash. Search map: https://coinatmradar.com/.
We have covered all the main differences between cryptocurrency exchanges and exchangers. It is believed that exchangers are a relic of the past, when it was still impossible to buy cryptocurrency in other ways. Today, most exchanges already offer an alternative – buying from a card. Be that as it may, but the popularity of exchangers does not even think to decline. They are actively used in a variety of situations, which means that it is definitely too early to talk about the decline of this industry. Both methods are good in their own way, you don’t have to dwell on one thing. Proceed from a specific situation – what is important to you at the moment (speed, benefit or support for certain payment methods) and choose based on this data.