How to buy and sell cryptocurrency with profit and convenience

How to buy and sell cryptocurrency with profit and convenience

By Jane Hero | ChangeHero | 2 Dec 2022

Cryptocurrency has been relevant for a long time, it allows everyone to make a profitable investment. However, in order to make an investment, it is necessary to take into account a number of nuances and many are wondering — how do I buy and sell crypto. First of all, it is necessary to determine exactly where you will conduct transactions, that is, choose the most suitable platforms for yourself. These can be exchanges, exchangers, and other opportunities where you can buy, sell and change cryptocurrency.

sell cryptocurrency with profit and convenience

Features of choosing an exchange for buying cryptocurrencies

Some platforms offer to do this even without a commission. In any case, you need to decide which exchange will be better and which one will be suitable for your transactions. You can choose either a centralized or a decentralized exchange. However, first you need to decide what a cryptocurrency exchange is, it is a place where you can exchange ordinary fiat money, namely dollars, euros for cryptocurrency and back, that is, you can buy and sell currency for money.

On the cryptocurrency exchange, you can buy other users' cryptocurrencies, just like on the marketplace, you can see all the offers for buying and selling other users. You can set the price for buying or selling cryptocurrencies yourself. It turns out that the exchanger is a kind of store, and the exchange is a marketplace where you can find different offers from different people. The exchanger earns on the difference in cryptocurrency exchange rates and takes a commission for its services.

The main income of the exchange is the commission from transactions. Raiders work on the exchange, they carry out the inflow of currency, make transactions. Almost every exchange offers additional ways to earn money on cryptocurrency, because in a bank you can not only keep money, change currency, well, open a bank deposit, the same applies to the world of cryptocurrencies. On the exchange, you can:

  • keep fiat money;
  • crypto on deposit;
  • receive interest at the same time;
  • lend money secured by cryptocurrencies;
  • earn on arbitration;
  • earn on the difference in exchange rates;
  • transfer and withdraw your currency to different wallets and bank accounts.

Varieties of crypto exchanges

If we consider p2p options, first of all, they are divided into traditional or centralized and decentralized exchanges. They allow the user to store money on the exchange itself, have access to your money, and hence there may be special risks, possible bonuses. Each exchange has its pros and cons. A centralized exchange is an analogy of an ordinary bank, in order to buy dollars, you first need to put money into a bank account and then transfer it into dollars.

To start trading on a centralized exchange, you need to top up your deposit. The main advantage of a centralized exchange is that you can pay here, pay with real money for cryptocurrency. As for the main difference between a decentralized exchange is that you can only buy and exchange cryptocurrencies with each other here. You cannot trade anonymously on them, in order to register on a centralized exchange, you must pass verification:

  • specify passport details;
  • send a photo of the document;
  • a selfie with it.

This is a complex process where you provide all your data. Of course, the exchange guarantees confidentiality, that is, the data will not go beyond its limits, but you will not be able to remain completely anonymous. However, there are advantages to this, for example, using your passport, you will be able to restore access to your wallet if you suddenly lost your password or access code.

differences between cryptocurrency exchanges

The main differences between cryptocurrency exchanges

As for decentralized exchanges, if you lose the digital key, you completely lose access to your asset. Among the popular centralized exchanges, there are different platforms. They offer different commissions - these are network commissions, server commission. The exchange takes money as a trading commission for the exchange of cryptocurrencies, for deposit replenishment, for withdrawal of funds. Among the advantages of a centralized crypto - currency exchange, it is easier to work with it, you can trade cryptocurrencies here, you can work with fiat money. The platform can charge interest for storing money, additional ways of earning are also allowed here, technical support works.

A decentralized exchange exchanges cryptocurrencies between users, it does not store money on its wallets. The exchange is carried out through smart contracts, this is a special program. Everyone can pay in dollars, euros, that is, by ordinary means. In addition, a centralized exchange does not require deposit replenishment. You can connect the wallet only by pressing one button, so you choose which currency you will change to which.

A centralized exchange is a special algorithm that works on the basis of a system of smart safes. With the help of the algorithm, two cryptocurrencies in two user wallets are instantly changed. Such a system allows you to change currencies within the same blockchain network. To start using a decentralized exchange, you need to take a few steps. All your coins are stored with you, the exchange takes place directly between two wallets, a decentralized network is safer, there is no human factor here, you can conduct trades completely anonymously. If we consider exchanges, then such platforms differ in that there is no regulation on them.

There is no reliable protection, there is no company, there are no smart contracts that also guarantee the reliability of transactions. The exchange is ready to reunite with those who are willing to sell or buy the specified cryptocurrency at a certain cost. Thus, this option is the most unreliable, because you work directly with a person, therefore, you are not protected, you can get into fraudulent schemes.

The best moments of crypto exchanges

In any case, you should be careful, guided by a number of factors. Exchange it is reliable, time-tested, guarantees completely transparent transactions, allows you to store your currency without commission. At any time you can withdraw, exchange the crypt. This exchange has long established itself as reliable, time-tested, so many choose it in order to carry out their transactions.

The main thing is that you need to understand that you should pay attention to a number of factors, and choose only the platform that is ideally suited to your needs. It is necessary to decide which country the exchange belongs to, this can be an important decision, you should look carefully at the licenses, you need to pay attention to the interface, it should be as clear and convenient as possible.

At the beginning of the work, you may not fully understand all the tools of the trading platform, make technical mistakes, and all this will lead to a loss of funds. Be sure to pay attention to the number of trading pairs, that is, to find the cryptocurrencies that are presented here.

On the one hand, the more digital assets there are, the more opportunities for trading and investing, but little-known projects may also come across. You should also pay attention to the tools, you should have different work options, there should be a stop order, staking, landing, and other tools that will allow you to work easily. Also, you should definitely read the terms of registration on the exchange, whether there are any special requirements here that you will not find acceptable. They are also investigating the conditions for withdrawing crypto currency, it is necessary to know in what amount, when and how you can withdraw your funds.

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