There are several ways to swap digital currency in the cryptocurrency market. The choice is between the exchanges or swap services (exchangers), both of them offer a wide range of digital currencies, a lot of altcoins at an affordable cost. So what is the difference? Where better to exchange bitcoins — on the exchanges or on the shape services?
Exchange or exchanger — what is the difference?
Cryptocurrency exchange: It’s a platform where traders can perform trading operations on buying and selling crypto-to-crypto.
Cryptocurrency exchanger: it’s a service that offers to exchange coins in a more simplified procedure.
Different specialists choose different sites depending on specific goals, but there are also common features that are suitable for everyone.
1. Exchangers are guided by the exchange rate, which is on popular exchanges. But they also add a margin to the main cost, an additional payment, which in fact pays for the work of the site. On average, the amount can vary from 2% to 10%, depending on how much you want to exchange. On exchanges, the commission is up to 0.5–1%.
2. Exchangers support team usually works on a certain schedule. Most often at night they are closed, have breaks and weekends. Most of them tend to work 24/7, and the most popular already work 24/7.
3. In the exchanger, you can buy only a limited number of coins. The exchanges have a reserve of funds that can be used if the trader decides to buy a large amount. If bitcoins on the exchanger can still be purchased (an average of about 10 coins), the altcoins will be a maximum of a few coins of popular cryptocurrencies. If you want to buy a unique currency, then most likely you will be offered to wait for a while until the site buys this coin. You need to understand that in this case you probably have time to register on the exchange with an expanded number of altcoins.
Advantages of the exchanger
1. The exchanger has a simple interface because there is no need to present analysis schemes and features of cost changes.
2. No need to register or pass verification, so you can buy coins in a short time.
3. Currency exchange platforms have a system of integration with popular payment services, so you can quickly transfer funds.
4. Most often, swap services do not have a minimum amount for exchange, as well as the maximum. In fact, it is possible to exchange even a single coin.
5. As for the services for exchange, they are customer-oriented. Usually, these services have quality support.
Advantages of the exchange
1. In terms of reliability, when it comes to the exchange of large amounts it is better to choose exchanges that have been long on the market and have a good reputation.
2. In terms of price, a more favorable rate can be found on the exchange, because the price is constantly changing, and the exchange rate does not have time to react to it. On the exchange, you can choose the moment when the price has changed in your favor and sell or buy your existing cryptocurrency at a better price.
3. A significant advantage of the exchange over the exchanger can be called the fact that the exchange of cryptocurrencies is available 24/7. It is especially important that the input of the crypto on the exchange is carried out without commissions.
Let’s sum up. Exchanges have more advantages for professional traders. but if you need to urgently swap a small number of bitcoins or popular currencies, the exchanger is better than the exchange.