Where to buy cryptocurrency: an exchanger or an exchange?
The popularity of cryptocurrencies continues to gain momentum. A few years ago, only advanced users knew what it is, why and where they could buy it, then today even schoolchildren are already interested in digital money. It is natural that on the cryptocurrency market demand generates supply: hundreds of exchangers and dozens of well-known cryptoexchanges offer their services to interested parties. So where is it better to buy cryptocurrency? Let's see.
To begin with, we will define:
A cryptoexchange is an online platform where users (or traders) can conduct cryptocurrency sales transactions.
A cryptocurrency exchanger is an online service through which users can purchase, sell and exchange cryptocurrencies for fiat money, as well as exchange some cryptocoins for others. Exchangers provide a simpler exchange procedure compared to exchanges.
In most cases, users — both traders and investors — choose exchanges because of a larger number of represented coins, affordable cost and a convenient withdrawal system. However, often in a competitive environment, exchangers offer equally favorable conditions. Compare:
Cryptoexchangers take into account the exchange rate presented on popular exchanges, and add an additional payment (commission), which ensures the operation of the service. The exchanger commission on average varies from 2% to 10%, while on Quickex it is just 0.3%, which is even less than the average commission on exchanges (0.5-1%).
Often, exchangers, unlike cryptoexchanges, where exchange processes take place daily and around the clock, work according to a certain schedule, for example, they close at night or have days-off. This exchanger problem is solved by automation (i.e. no operator), as Quickex did.
Exchangers do not require registration (or the minimum required data is necessary for it), while registration may take considerable time on the exchanges.
Of course, exchanges also have benefits, for example, more advanced security system compared to the average exchanger, as well as often more significant reserves of funds in case the user needs to withdraw a significant amount. But security and reserve issues in the context of exchangers are decided by the choice of a proven service.
If you are a professional trader, then exchanges potentially give you more opportunities for trading, since all processes occur between users and do not depend on the platform and its management. But in general, a simple interface and fast processes of transferring and exchanging coins make exchangers more convenient for users who need to sell or buy a small amount. But it is still important to choose the right service. How to do this and what to look for when choosing - we will tell you in the following publications. Subscribe to the Quickex blog.