Today, probably everyone who has access to the Internet or other media has heard about the benefits of investing in cryptocurrency. If you believe the all-knowing statistics, Bitcoin is mentioned in the general information flow approximately once every two seconds. With such a density of information flow, the decision to join the crypto world is just a matter of time.
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The main difference between an exchange and an exchanger
A centralized cryptocurrency exchange (CEX) operates much like a stock exchange, but is focused exclusively on cryptocurrencies. Its main purpose is to ensure constant trading of crypto assets, and exchange is only one of its functions. Typically, all the capabilities of exchanges are actively used by traders who are ready to delve into the intricacies of the cryptocurrency world.
In contrast, crypto exchanges are designed solely for exchange purposes. They are suitable for almost everyone, including beginners, due to their simple and understandable functionality.
The ETH/BTC exchange process on both sites is organized in a similar way. However, noticeable differences appear in the interface. On the main page of the exchanger you will be greeted by a small exchange widget with several fields, while on CEX you will find many tabs: for spot and margin trading, mining, staking, participation in affiliate programs and much more.
Users have access to a large arsenal of popular analytical tools, the ability to trade on different timeframes, using pending orders of different types. CEX is a platform that specializes in profitable swaps and different ways to make money on cryptocurrencies.
To perform a swap on CEX you must register. Most modern exchanges additionally require an identity verification procedure, especially if you try to work with a fiat gateway. After completing all the necessary formalities, everything is quite simple:
- You are making a deposit.
- Find the trading pair you need.
- Place an instant or pending order.
After the order is triggered, withdraw coins to your personal wallet or continue trading.
Advantages:
- Automatic mode and high transfer speed.
- Low commission.
- High level of reliability and safety.
- The withdrawal procedure may take several days.
- Operates 24/7.
Flaws:
- High commission for depositing/withdrawing funds.
- There is a risk of hacking.
- Client funds are managed by a third party.
- The need to undergo verification to pay with a bank card.
Fast exchangers
Fast exchange services are designed for fast swaps. Such platforms support transactions with both digital and fiat currencies. The number of available assets and swap directions can be in the thousands. There are very few analytical tools, but a graph of the ETH to XRP exchange rate dynamics will be available for viewing if the service supports this exchange direction. There is also no order system, although the user can choose between a fixed and floating rate.
Exchangers usually do not store user coins and are loyal to anonymous clients. The functionality of many platforms is available without registration and KYC.
How a swap is performed
Actually, the client will be required to take the same steps as at CEX, but in a more simplified form.
- In the top field of the exchange widget, select the original coin and enter the transaction amount.
- In the lower field, select the target currency for purchase.
- Provide details for crediting funds (crypto wallet address, card or account number)
- Top up your deposit.
- Select one of the transaction options proposed by the system and confirm the application.
The transaction is completed on average within 15 minutes and the funds are credited to your balance.
Advantages:
- Ease of use.
- Large selection of coins.
- Possibility of carrying out transactions without registration.
- No commissions for input/output.
Flaws:
- Higher commissions.
- Several services are inaccessible outside standard working hours.
CEX are created for systematic trading and passive income. Fast exchangers are more suitable for investors who exchange coins infrequently, for the purpose of taking profits, replenishing or rebalancing a portfolio.
