How to Choose the Right Bitcoin or Cryptocurrency Exchange
Bitcoin-exchange is undoubtedly a vital tool in the hands of both professional investors and traders, as well as those who are just starting their way on the cryptocurrency market. Of course, in this area, there are many nuances and points that should be paid attention to in order to exchange bitcoin with the maximum benefit.
With the advent of a new payment instrument in the form of a cryptocurrency, it became necessary to convert it. To solve this problem, special exchangers have been created, with the help of which it is possible to exchange bitcoins for the different national currencies or another cryptocurrency.
So, nowadays, there are online and offline exchange cryptocurrency. The integral part of their work is a commission that can differ significantly on the different exchange services, but on the average, it is 4-5% of the transaction amount. This indicator depends on which exchange the exchanger takes as its basis for determining the exchange rate. This is due to the fact that quotes on them are different.
Online exchangers perform operations for the exchange of bitcoins exclusively through the Internet. With the help of online exchange, the user can quickly transfer the cryptocurrency into any national currency with the withdrawal of the amount to the specified bank card or account. Also often there is an opportunity to exchange for virtual money and other well-known payment systems.
Offline exchangers work just like conventional currency exchange offices where you can sell bitcoin for cash, but with some reservations. Existing offline exchange services assume interaction with the client through the Internet, and their difference from online services is that the client receives as a result immediately cash, without transfers to a bank card or a purse of the payment system.
How to Choose Bitcoin-Exchange?
First of all, when choosing such exchanger, it makes sense to keep in mind several key criteria:
- Convenience. The procedure for completing the operation should be as simple and quick as possible.
- Reliability. Terms of exchange should be acceptable to you, and the work process – safe. The best way to see the rating of the exchanger on sites that make reviews of exchange services.
- Transparent conditions for the formation of exchange rates and commissions.
- Reputation (number of transactions and/or reviews).
Determine where the most profitable to make an exchange, will help monitor the exchange of cryptocurrency because the rate of buying/selling on different exchanges is different. This makes it possible to choose an exchanger that is oriented to a high-exchange to make it more profitable to change bitcoins.
How to Work with Bitcoin-Safe Safely?
To successfully use online services for the exchange of cryptocurrency, you should follow the following recommendations:
- Pay attention to the amount of reserve required currency in the exchanger. If the reserve is less than the amount of your transaction, the exchange will not take place.
- If possible, ask questions to the consultant, so you can be sure that the service is actively supported.
- Check the website address (domain name). Often scammers try to copy the design of known exchanges and register domains that differ by one or two letters in the name. Going to such a site, you risk just giving away your money without getting anything in return.
- The indirect sign of the reliability of the online exchanger is the availability of an SSL certificate, which can be judged by the letter “s” at the beginning of the site address (https: // …). Also, pay attention to the age of the exchange service: if the site-exchange has been working for a couple of years, it apparently provides with the trust of people. It is also an indirect indicator of reliability, but it is not necessary to neglect it completely.
- Pay attention to the operating mode of the online exchange. If you want to make an exchange at night, then make sure that the exchange works around the clock.
- Be vigilant when working with an unknown exchange. Before the exchange, follow how the service works. If it happens to be inaccessible at some time or there are interruptions in work, then safely choose the other. Do not forget to immediately specify the commission of the transaction, if it is not listed on the site. It is best to start exchanging with small amounts to make sure the reliability of the selected service.
Usually, the exchange through the online services involves the completion of special forms, where you first select the sale currency, then – the currency of purchase. After that, enter the addresses of the corresponding purses and contact information. Usually, there is enough e-mail address, but some exchange services may require photographing you against the background of the exchange’s site with your documents in an expanded form for verification. Next, the application is assigned a number, and it begins to be processed.
How is the Exchange Going?
The exchange mechanism in the offline exchanger is constructed as follows:
- The person who wants to sell bitcoin passes the cryptocurrency to the exchanger’s purse through the online service.
- In the exchange office registers the transaction, fix the course and issue an application.
- Then the client comes to the institution of offline exchange of bitcoins, in which the application is made out, and calls it a number, and the cashier gives the cash.
The only drawback of such exchange points can be called their rarity: they are found only in large cities and not in all countries. Such exchanges are well suited for the operations with large amounts, since the exchange itself, as a rule, takes place in the room behind an armored door. Also, it is often offered the service of delivering money by the courier to the agreed place.
Thus, choosing a cryptocurrency exchange service is quite easy, if you pay attention to the recommendations and do not hurry. Spend some time looking for a reliable exchanger and protect yourself from losing electronic funds, which in such cases will be extremely difficult to return.