Cryptocurrency exchanges or exchange services?
Today we will consider the pros and cons of both exchange options to understand which one is better.
To make a purchase of the cryptocurrency through an exchange service, you need to register on its website, select two currencies (which you want to give and which you want to purchase in return), indicate the amount, create and pay for the application — and the exchange will be made.
Benefits of exchange services:
- Easy to use.
- Some exchange services do not require registration.
- No need to pay a commission for depositing and withdrawing funds — a fee is charged only for the exchange itself.
- Exchange takes from 5 to 20 minutes.
Disadvantages of exchange services:
- In many exchanges operations are carried out manually, there is no automatic mode.
- A limited set of cryptocurrencies available for exchange.
Cryptocurrency exchanges offer a wider range of functions compared to simple exchanges. Through cryptocurrency exchanges, you can not only buy and sell a cryptocurrency but also store it there in special wallets.
Benefits cryptocurrency exchanges:
- Automatic mode and high exchange rate — operations take place instantly.
- Higher levels of reliability and security
Disadvantages of exchanges:
- High commission for depositing and withdrawing funds.
- A more complex mechanism for managing your funds compared to exchanges.
- To pay by credit card or online banking, you will need to go through verification (the procedure may take several days).
Cryptocurrency exchanges are more suitable for advanced users — those who plan to often exchange cryptocurrencies and rarely deposit and withdraw funds from the exchange.