The choices are endless to exchange your crypto. You can use an exchange, an exchange build into a wallet, atomic swaps systems and many more different exchange methods. Now the question is what is the best way to exchange your crypto. This differs per person and what you want to achieve with your crypto portfolio. But it doesn't hurt to see what ChangeNOW has to offer.
Hereby my contribution to the explanation of what ChangeNOW exactly is and what the company wants to achieve. I will discuss things like what ChangeNOW is, how it works, is a KYC needed, what are the advantages and what are the disadvantages of using ChangeNOW.
We will discuss the following sections:
- A few important basics of ChangeNOW
- Does ChangeNOW use the KYC / ALM service?
- When do you have to go through a KYC / AML procedure?
- What are the speed of the transactions?
- What are the costs during an exchange?
- What are the advantages and disadvantages of using ChangeNOW?
- How to swap coins in 5 easy steps?
A few important basics of ChangeNOW
ChangeNOW makes it possible to exchange your crypto coins and tokens in a fast and very easy way. Furthermore, there are no hidden costs that make changing your crypto what makes it even more attractive. According to the website, it is possible to exchange more than 170 types of coins and tokens against each other. Registration is also not necessary to participate in the exchange of your crypto. ChangeNOW works together with Binance, Bitfinex and Bittrex, among others, and a number of partners are working together to offer you the best trading prices.
Does ChangeNOW use the KYC / ALM procedure?
What is a KYC / ALM procedure you may be wondering? KYC stands for Know your customer. And ALM stands for anti-money laundering measures. These are certain procedures that are laid down in laws and regulations of different countries. It should ensure that, for example, the money earned from illegal activities can be traced if money laundering is attempted. And to be able to link these money laundering practices to a person. ALM regulations require financial institutions to always perform due diligence procedures. The KYC regulations say that financial institutions must verify the identity of customers.
Now continue with the question whether you must first go through a KYC / ALM procedure before trading on ChangeNOW. No, it is not necessary to go through a KYC initially. But to protect customers from fraud and other scams. This is certainly a plus because it protects customers on a certain scale against fraud and misuse of the system.
ChangeNOW chose to do this by installing a system called KYC / ALM procedure. This is to be able to comply with the current regulations in case things go wrong.
When do you have to go through a KYC/AML procedure?
ChangeNOW uses a system that detects suspicious transactions and this system will lock this crypto. Now you will have to confirm your identity via a KYC/ALM procedure to be able to remove this crypto from the lock up again. How the system ensures this is not clear. The website says the following about this:
There are certain criteria that the system uses; however, they cannot be made public, otherwise there will be people trying to misuse these criteria to cheat the algorithm.
If a customer is identified as someone who makes a suspicious transaction, he will be notified. After this, you will be asked to participate in the KYC/ALM procedure.
To verify your identity, you must be able to show the following:
- A photo of an identification document
- A screenshot of where the money was deposited from
- A photo of the customer himself with your own ID proof in hand along with a print or printout of the ticket of the ChangeNOW team
If the transaction is approved, the coins will be deposited in the wallet. If the KYC / AML procedure cannot be complied with in a certain way, the money will be refunded to the customer's account.
what are the speed of the transactions?
The speed of the transactions is different in nature. It takes about two to twenty minutes. For example, if you want to exchange a large amount of crypto, it may take longer. ChangeNOW says it has the highest exchange rate. That is certainly a plus.
What are the costs during an exchange?
- Costs for depositing from the wallet
- Costs for sending the coins to ChangeNOW's liquidity provider
- Fees charged by ChangeNOW's liquidity providers
- The costs that the network charges for exchanging money
According to the website, the purpose of ChangeNOW is the following regarding exchange costs:
The costs depend on the currency and the exchange amount. For any exchange, ChangeNOW finds the fastest and most profitable way to make an exchange. It is critical to us that the final amount you receive is as close as possible to the estimate. Therefore, we calculate all possible fees for each transaction very thoroughly and include them in the estimate.
What are the advantages and disadvantages of using ChangeNOW?
The advantages are the following:
- You can exchange an unlimited number of coins.
- You can already start exchanges starting at $ 2.
- A great security policy (ChangeNOW has no control over your crypto).
- The crypto is exchanged immediately with about a time of 2 minutes.
- You can buy crypto from ChangeNOW via Visa and MasterCard.
- More than 10,000 kinds of currencies are supported.
- There are no hidden costs.
- No registration.
The Disadvantages are the following:
- ChangeNOW is a sort of centralized exchange.
- KYC / AML can be seen as an advantage, but in my opinion also as a disadvantage. (See the point Privacy). This is not so much a disadvantage on the ChangeNOW side, but I see this as a disadvantage.
- The many actions you need to take can cause you to enter a wrong wallet address, which can lead to money loss.
- Privacy: exchanges always store part of your data. This is the case, for example, with a KYC / AML procedure.This is not so much a disadvantage on the ChangeNOW side, but I see this as a disadvantage.
How to swap coins in 5 easy steps?
For example, you can exchange Bitcoin against Ethereum and back. In the amount section you can enter how much Bitcoin you want to exchange. Now it will be calculated how much Ethereum you will get back for the number of Bitcoins you want to exchange. now click on Exchange and this will bring you to step 2.
Now enter your wallet Address in the recipient wallet box. In my case that is my Ethereum address. Now press next and this will bring you to step 3.
Now check your swap details and confirm your swap. Press confirm this will bring you to step 4.
ChangeNOW will generate a Bitcoin deposit address for you. Send your Bitcoins to that address. This will you bring to step 5.
Now you will receive your crypto at the specified address you entered. When the box Sending to you wallet is green the amount is send. ChangeNOW will find the best rate for you to get the most out of your swap. So you can see that it is very easy to do swaps with ChangeNOW. There are no emails, passwords or a long registration process involved in the swap.
Exchanging crypto is very easy if you use ChangeNOW. This is done by taking the simple steps I described under "How to swap coins in 5 easy steps?". There are many more different options that can be used that I have not discussed. So it certainly takes some research to clarify for yourself what ChangeNOW can do more for you.
Despite the fact that ChangeNOW Centralized it is still one of the cheaper exchanges. For example, if you look at Atomic wallet, the costs are higher than those of ChangeNOW at the time of writing. It is definitely worth a try on ChangeNOW to find out if this Exhange is for you as a trader.
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If you use my referral link, I will be paid for every exchange through my link. My referral link from ChangeNOW: https://changenow.io?link_id=f8d74cb7c42e2e
I'm not giving any financial advice, this is just a blog for more information.