As soon as some interesting new product appears on the market, specialized retail outlets are organized to sell it. Cryptocurrency exchanges appeared in response to requests from crypto enthusiasts who expressed a desire to sell or buy Bitcoin. Their functionality was extremely meagre and boiled down to exchanging cryptocurrency for fiat money or vice versa. Trading platforms changed as the new market developed. Some of them relied on the speed of service, while others began to develop additional functionality for effective speculative trading. Ultimately, two distinguishable groups of trading platforms emerged: classic cryptocurrency exchanges and fast exchange services or crypto exchanges.
Cryptocurrency exchanges
Classic centralized cryptocurrency exchanges (CEXs) functionally resemble their older relatives – stock exchanges and Forex. In addition to the main function of buying and selling digital assets, it also provides the opportunity to exchange them for other cryptocurrencies, as well as for fiat money, which can be withdrawn to personal crypto wallets, bank cards or electronic payment systems. Convert USDT ERC20 to TRC20 occurs automatically when withdrawing funds to an offline wallet.
The standard technical minimum of CEX necessarily includes a built-in multi-currency crypto-wallet. Many of these trading platforms, in addition to trading functionality, offer various additional opportunities for making money on cryptocurrency.
As a rule, the CEX functionality provides an extensive set of analytical tools, several options for displaying a price chart, and the ability to switch between different timeframes. An order system is used to manage risks. To put it very briefly, CEX provides all the opportunities for profitable exchange.
How it works
First of all, you need to create an account on the exchange of your choice. Reputable platforms will likely require proof of identity.
To complete the identity verification process, you will need to provide at least a scan of your passport or other ID. In some cases, you may also need to attach a current photo or video that meets the established requirements. After providing the required details, you will have to wait for the verification process to complete.
Although verification may not be mandatory, completing it allows you to use all the technical capabilities of the platform. Otherwise, some functionality may remain unavailable.
How to buy coins
Select the coin to purchase and create an order by specifying the number of coins and the desired price. Orders can be executed immediately and completely, but their gradual implementation over time is also possible. Once the transaction is completed, you can store the coins in the exchange wallet for further trading or withdraw funds to an offline wallet.
The leader in this segment is the Binance crypto exchange, but in the CoinMarketCap rating, you can easily find other CEXs with conditions that are optimal for you.
Instant exchange services
Unlike traditional trading platforms and exchangers, instant exchange services rely on the speed of order execution. Accordingly, their functionality is very simple. There may not be any analytical tools at all, except for price charts of all trading pairs that the platform supports.
They do not store clients’ money and do not have their supply of coins, but cooperate with other sites. Many fast services are available without registration, much less account verification, although there are exceptions. The number of supported trading pairs, including crypto-fiat ones, depends on the partner platforms.
How it works
Let’s look at the process of purchasing cryptocurrency using the example of the LetsExchange service, one of the best in its segment. To do this, follow these steps:
- In the top field of the exchange widget, select the coin to sell and indicate the number of coins.
- In the lower field, select the coin to purchase.
- Enter the address of the wallet to which the coins will be credited.
- Click the “Exchange” button.
The system will automatically select a deal for you, perform the exchange and credit the funds to your wallet. The service does not store your funds or confidential data, which virtually eliminates the risk of theft or leakage. Your coins only leave your wallet while the transaction is completed. The https://letsexchange.io/exchange/atom-to-bnb supports 3800+ cryptocurrencies and several dozen fiat currencies.
CEX is for you if:
- You make many trades throughout the day.
- You are not limited to exchange and are interested in additional options such as staking.
An exchanger is for you if:
- You are an investor, not a trader.
- You want to complete the transaction quickly and easily.
- You need cryptocurrency (including the first one) to be credited to your CEX account.
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