Differences between buying and selling cryptocurrencies through the exchange and exchanger

To understand the difference between the exchange and the exchanger we should determine the meaning of the exchanger and the exchange. On the exchanger, the work looks like this: you send funds to the company's account and receive the necessary cryptocurrency in return. Operations can be carried out in two ways: manually by the manager of the exchanger; automatically without processing the application by the manager of the exchanger. That is, the crypto exchanger acts as a centralised intermediary service. The exchange rates are formed based on the major international exchanges.

The exchange on the cryptocurrency exchange takes place according to a different scheme. There you conduct all transactions directly with other bidders, individuals. The cryptocurrency exchange is a more complex and improved bulletin board. A participant who needs to buy a certain currency places a sell order for another participant who intends to buy. The participant who is satisfied with the proposed conditions buys this currency at the set value. All these actions take place automatically around the clock.

There are automatic exchangers, which are a form of exchange with a simplified interface. They allow you to quickly register and perform the necessary operation in minutes.

The interface of exchangers is noticeably simpler than that of exchanges, mainly due to the lack of information about changes in the value of assets and analysis schemes. Despite the fact that trading platforms are constantly working on its simplification and adaptation for beginners, exchangers are still many times easier to use.

Let's move on to other differences between the exchange on crypto exchanges and crypto exchangers:

Price differences

Exchangers set a really good rate of cryptocurrencies when they buy them from people, because in this case there is very strong competition between exchangers. Popular cryptocurrencies on exchangers can be bought at a better rate than on exchanges. If you sell crypto with the subsequent withdrawal of fiat to a card, a commission is usually charged on the exchange and the exact amount can be found out only after receiving the money. The exchanger's commission is often included in the exchange rate, and in coin24.io there are no hidden fees and the payment amount can be found out in advance during the calculation using a calculator.

Please note that the clearly inflated cost of buying a crypt from a client may indicate an exchanger with an unscrupulous reputation.

Withdrawal of funds

When you sell cryptocurrency for fiat on an exchange, the proceeds go to your exchange account. Then you will need to trouble yourself with the withdrawal of fiat to a bank card. In the case of an exchanger, the required amount is credited to the card immediately if you have chosen this withdrawal method. If you make a purchase of cryptocurrency on unreliable services, “dirty digital assets” may be sent to you. Blockchain technology allows you to track the origin of cryptocurrencies and you can get into trouble by buying a cryptocurrency that was involved in illegal transactions, for example: this crypt was used to finance terrorism, or money laundering. To avoid the risk of getting a “dirty currency”, you need to buy a crypt either on exchanges with an impeccable reputation or on trusted exchangers.

Advantages of the exchanger over the exchange:

Safety

When buying a cryptocurrency in an exchanger, the coins are sent directly to the address of your wallet. On the exchange, funds are stored on the internal account of the account, however, if you do not plan to conduct active trading, it is better to withdraw funds to a “cold” wallet. Even well-known exchanges often succumb to hacker attacks, which makes users who store their funds there very nervous or suffer losses. In 2019, 12 cases of hacks of well-known and large exchanges were recorded, as a result of which more than $290 million disappeared from the accounts. Therefore, it is better to think about the safe storage of your digital assets.

Anonymity

Exchanges require clients to complete an identity verification procedure (KYC, which means “Know Your Client”). The client passes verification of identity and documents. Sometimes it is enough to upload documents and check them by the exchange employees, and sometimes verification is carried out through a special system in order to identify a real person. At the same time, most exchangers only ask for an email and a wallet address for registration. You can link your wallet to the exchanger's website or mobile application, and everything is ready for transactions. Exchange platforms often integrate popular payment systems to make the movement of funds as fast and convenient as possible. Another advantage of exchangers is that they do not have such restrictions on the exchange that are present on the exchanges.

Other differences

On the exchange, one or several large players (whales) can easily raise or lower the rate of a single cryptocurrency at times in order to profit from it by selling their assets profitably on growth or buying them cheaply on a fall. In this context, a cryptocurrency exchange is less prone to market manipulation as it can work with multiple exchanges.

The choice of the best exchange rate should be done with the help of monitoring exchange offices. It is important to have some experience in this matter. Monitoring helps to compare rates for the selected direction on various exchangers. Before making an exchange on a new service with a more favourable rate, you need to spend time studying reviews and making several test exchanges. For novice cryptocurrency buyers and sellers, a more reliable way would be to save a trusted exchanger to your browser bookmarks. It is not always possible to find some rare cryptocurrency on the exchange. At the same time, coin24.io will provide you with the opportunity to order the cryptocurrency in the required amount.

Conclusion:

Undoubtedly, exchanges occupy an honourable place in the cryptocurrency sphere, but they are not suitable for everyone. The advantages of trading platforms will be more appreciated by professional traders, for whom cryptocurrency is not a passive investment, but a daily work. If you have just started to get acquainted with the world of cryptocurrencies in general, it is better to buy or sell cryptocurrencies in an exchanger using the exchange service.