Cryptocurrency exchange: features, disadvantages and advantages

How to exchange cryptocurrency?

13 Dec, 2019 Colin Baseman

Let's start with the most obvious - exchangers. The principle of their work is very simple and similar to a conventional currency exchanger. Using them, you can exchange not only fiat money (for example, dollar or euro) for cryptocurrency but also one cryptocurrency for another.

There are literally hundreds of services, and all have their conditions and commissions. But there is a convenient site where they are all collected and sorted by reputation and rate - Its main advantage is that you immediately see the most profitable offers for the exchange and all the conditions (source of payment, amount of possible operations).

Main advantages

  • The site monitors all the cases of exchangers cheating and immediately removes the fraudulent services from the list. There you can not only share your feedback but also read feedbacks from other people, which gives another layer of protection against scammers.
  • You can select the services that work with that payment method and cryptocurrencies with which you want to make an exchange.
  • Very quick update of price data - they change every 5-8 seconds.
  • You can set up convenient alerts that will let you know if the price of the cryptocurrency you need drops to the desired value. 

How to exchange cryptocurrency on

Select the currency pair to exchange. For example, rubles for bitcoin. Or Ethereum to dollars. Or an exchange between cryptocurrencies themselves. Choose a transaction tool and get a list of exchangers. 

Then, choose a service with the best reputation and the exchange rate of the desired currency. Go there and make a deal following simple instructions. As a rule, it is enough to deposit the amount of the desired currency or the amount of funds that you want to spend on the exchange. Indicate where you want to receive money or coins - and soon you will have a transfer.

Exchangers have inconveniences:

  • Sometimes, commision for purchasing coins can be quite sufficient.
  • You need to prepare a cryptocurrency wallet in advance if you want to buy cryptocurrency for fiat. Or make sure that your wallet supports the currency you want to purchase.
  • This sphere is not regulated in any way, so there are no absolute guarantees, but a good reputation of the service will be a great argument.
  • The first transfer from the exchanger can take a long time. Sometimes transactions take up to several days. And although such cases are rare, do not be alarmed if suddenly the coins do not reach you immediately.

Cryptocurrency exchange through exchangers is well suited for beginners who have not yet figured out all the intricacies. It is usually limited only to major coins. Therefore, for more advanced users who want to exchange fiat or bitcoins for rarer tokens, an exchange on the exchange is better.

How to conduct an exchange on the stock exchange?

One of the most popular exchanges for those who want to exchange fiat for cryptocurrency or buy some coins for others is Coinbase. It is very convenient in that it supports credit cards. Therefore, you do not have to exchange your fiat for cryptocurrency somewhere before and lose money on commissions and transfers. Although the exchange itself, during the exchange, of course, it will take its commission.

The site was founded back in 2012, so it managed to earn a solid reputation. One of the great advantages of the exchange is that there you can safely not only exchange but also store the received tokens. 98% of the funds of Coinbase users are stored on hardware wallets offline. The platform also uses the AES-256 encryption algorithm to protect all data of both the exchange itself and users.

The exchange process itself is very simple. You transfer funds to the exchange wallet or use a credit card. Choose the necessary tokens and exchange your resources for them. You can immediately withdraw the received tokens, or you can leave them on the exchange - suddenly you will again want to quickly exchange them.

Changelly. Exchange used even by exchanges.

Despite its relative youth (created only in 2015), the service has already established itself in the market. It is used in its work and integrated into the processes by such exchange giants as Bittrex, Poloniex, and HitBTC. Freewallet, Coinmarketcap, Coinpayments, Jaxx Wallet and many other sites and wallets collaborate with Changelly. The developers also inspire confidence - this is the team of the famous MinerGate miner.

The service charges 0.5% of the total fee and the transaction fee that is provided for in the cryptocurrency blockchain itself. Changelly is very easy to use, sharing in it is no different from the options described above. It is possible to connect two-factor authentication for additional protection. 

So, now you know the 3 most popular and profitable ways to exchange cryptocurrencies. Which one to choose is up to you, but do not forget to pay attention to the fees and reputation of the exchanger if you are planning to use the first method. As you can see, the exchange of cryptocurrencies does not require special knowledge at all, so feel free to get the necessary tokens and coins.