What Is An Exchange ?

Online exchanges let you convert currency from one to another. Just imagine cryptocurrencies you will need to convert fiat currency (INR, USD, EUR, etc.) to a cryptocurrency, or exchange one cryptocurrency for another.

To use an exchange, you need to follow this procedure-

  1. Create an account.
  2. Verify your identity by providing a copy of your ID or other proof.
  3. Deposit funds into your account to start trading.
  4. Withdraw your funds when needed.

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NOTE- For security reasons, instead of keeping it in your account on the exchange, it’s good to withdraw and hold funds yourself.

 

There are three different types of exchanges-

  • Brokers
  • Trading platforms
  • Direct P2P

 

  1. Brokers

A broker is just like buying cryptocurrency from a cryptocurrency shop. Brokers purchase coins from traders, put a price tag on it and then sell it to their customers.

A broker is a fast and easiest option, but they might also seem to be one of the most expensive ones. It is known similar to a regular brick-and-mortar store.

 

Exchange Fees

There are three main types of fees that can be sustained on an exchange.

a) Deposit fees- Fees for depositing funds into your bank account. This is not charged by the trader itself, but by your bank as the cost of a transfer. If in case you want to convert currencies for example, from AUD to USD, this will also cost more.

b) Trading fees- You’ll get charged around 3% total trade volume in commission by brokers or might pay 0.1% to 0.5% total trade volume in fees per trade on other exchanges.

c) Withdrawal fees. These are fees are given at the time of withdrawing funds from the exchange to your own wallet or in the bank account. The fees depend on the currency type which is being withdrawn.

http://coinscanr.com/

 

The best value for money exchange depends upon-

  • How frequently you’ll are initiating withdrawals?
  • The currencies you’re trading
  • Your planned trade volume

 

  1. Trading platforms

This is the most widely used exchanging method. Most people are ready to trade when they talk about an exchange? This will simplify the situation and let users buy and sell currencies with each other. They also have charting software and latest trade operations such as order limits.

As per definition, you will always pay or sell at market rates in an exchange. The “official” value of a coin is based upon

An average of the recent buying and selling prices at the world’s largest trading platforms.

 

Exchange Fees

There are three main types of fees that can be sustained on an exchange-

a) Deposit fees-

This is the fees for depositing funds into your bank account. These are not generally charged by the exchange itself, but by your bank as the cost of a transfer. If you want to convert currencies such as from AUD to USD, this will also cost you more.

http://coinscanr.com/

 

b) Trading fees- The fee for making a trade itself, will charge you around 3% total trade volume in commission by brokers or might pay 0.1% to 0.5% total trade volume in fees per trade on other exchanges.

c) Withdrawal fees- These are fees are given at the time of withdrawing funds from the exchange to your own wallet or in the bank account. The fees depend on the currency type which is being withdrawn.

The best value for money exchange depends upon-

  • How frequently you’ll are initiating withdrawals?
  • The currencies you’re trading
  • Your planned trade volume

 

  1. Direct P2P

P2P (peer to peer) exchanges are just like a middleman who connects buyers and sellers to help people to trade cryptocurrency the way they want. It’s mostly a platform for people to do advertisements of the coins they want to sell it to anyone who wants to buy it.

The main benefit of this type of exchange is that it can allow you to quickly and enormously buy or sell coins with almost any method of trade or payment procedure you want. The drawback of such type of exchange is that you will often have to pay above market prices, and it is also very risky as compared to other exchange methods and might lead to any other problems. While doing this always keep a written paper proof with officially signed form.

http://coinscanr.com/

 

To help reduce the risks, you can have built-in escrow features and a reputed system to verify the identity of decent and authorized buyers and sellers.

 

Exchange Fees

There are three main types of fees that can be sustained on an exchange.

a) Deposit fees-

This is the fees for depositing funds into your bank account. These are not generally charged by the exchange itself, but by your bank as the cost of a transfer. If you want to convert currencies such as from AUD to USD, this will also cost you more.

b) Trading fees- The fee for making a trade itself, will charge you around 3% total trade volume in commission by brokers or might pay 0.1% to 0.5% total trade volume in fees per trade on other exchanges.

c) Withdrawal fees- These are fees are given at the time of withdrawing funds from the exchange to your own wallet or in the bank account. The fees depend on the currency type which is being withdrawn.

The best value for money exchange depends upon-

  • How frequently you’ll are initiating withdrawals?
  • Your planned trade volume
  • The currencies you’re trading

 

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