Trading is definitely not everyone’s cup of tea until someone is an expert and holds comprehensive knowledge about Bitcoin. Various factors ought to be in consideration before trading or simply dealing with the exchanges. It ranges from total ease to completely advance tools and methods that are required for cryptocurrency exchange. However, it is not possible to initiate trading until one attains a proper account of it.
Bitcoin was invented with the motive of eliminating the third-party and performing digital currency transfers with ease.
This resulted in the reduction in the intervention of counterparties in finance and cutting down the cost of monetary transactions. So, before we know how startups are disturbing this vision of Bitcoin, let’s know various cryptocurrency exchange methods.
- Trading platforms- These platforms are websites that are used to connect sellers and buyers. These platforms charge their fees as a medium for both parties.Direct trading- As the name suggests, this type of exchange happens when both seller and buyer connects without any middleman.
- Via Brokers- Quite similar to foreign-exchange dealers, brokers are websites that let the buyer purchase the cryptocurrency at the pre-determined price.
- Once you know the types, now the question is to pick up the right exchange to avail maximum benefits.
Undoubtedly, if you are going to be a trader as an amateur, then you have to do a little homework for sure. First things first, you should check out the reputation of the website that you are using as a medium of your cryptocurrency exchange. Keep in mind that various forums are there to help you with your queries. Secondly, be aware of the fees you are going to pay beforehand and try to stick to what seems genuine.
Deposit fees, transactions, and withdrawal fees are necessary to understand before you initiate the exchange. Thirdly, keep an eye on the requirements for the verification and see, which platform will allow you to be anonymous. Besides, payment method, exchange rate, and geographical restrictions will put a lot of impact on your decision making for the right cryptocurrency exchange.
A great number of startups such as Crypto, Coinbase and TenX, offer platforms on which market makers’ can trade and use these digital funds. However, using these funds through exchanges or payment services incurs substantial fees that the customer is expected to endure in order to use their digital funds.These companies in fact hold cryptocurrencies and allow market makers to partake in the crypto trading landscape.
These platforms serve as digital wallets and allow their users to freely use their cryptocurrencies and convert them into local currencies. Yet, the main issue still remains: customers are unable to gain direct access to their funds. These companies, in fact, hold custody of customers cryptocurrencies, and become the very third party bitcoin was avoiding all along.
These companies are being promising while creating a safe and effective transaction. No doubt, these organizations offer an extra layer of the transaction and make easy connections. With their facilitation of these startups, the whole crypto-ecosystem is working faster as well as smoother. But, it is disrupting the core motive of the crypto. For instance, XanPool is one of the renowned names in this category that is doing quite well to provide instant and non-custodial models for cryptocurrency transactions. In other words, customers can make instant transfers to each other, while the Company’s software assures the instant delivery of the trade. The money, thus, never actually comes under its custody. A custody-less system, can serve both companies end-users, but also the companies which have partnered to use them as a fiat gateway.
The question that should be asked is what kind of potential does this promise hold? If a gateway can enable an effective transaction system, what else can be achieved - how far can the net stretch? While it’s true that the need for a company to connect between end users and other companies creates another layer to the transaction, it seems the advantages outweigh that particular barrier too.
Creating smoother and faster links within the crypto-ecosystem, eventually serves the people who actually need them; the exchanges. Connecting the purl cryptocurrency infrastructure (such as exchanges like OKEx, Bithumb and Bk Ex, digital wallet, Decentralized Applications and so on) with local currencies would eventually have a ground breaking impact on the economy, but more important; return the power to those who actually own their assets - allowing them to on-board and off-board their crypto and local currencies.