Cryptocurrency has become a common thing these days. Everyone is talking numbers when it comes to trading, even ordinary people become investors and gain profit. So, it seems like a good idea to convert fiat money to cryptocurrency, right?
For example, if you convert btc to eth at the right moment, and the prices on eth increase, it can be called a good deal. So yes, converting fiat money to cryptocurrency, or one type of digital token to another is a good idea. Check out the article to learn why exactly, and what types of exchanges to use if you decide to convert.
How to Choose a Crypto Exchange Platform?
One of the most important things in choosing a type of crypto exchange. There are two types of crypto exchanges:
- A decentralized crypto exchange. The name speaks for itself – it’s a platform that does not require any third party to trade. A decentralized platform offers peer-to-peer exchange, mining, and connects buyers and sellers.
- A centralized crypto exchange. It offers third-party services so the buyer and seller can exchange immediately. The majority of digital transactions go through centralized exchanges since they offer more reliability.
The main reason why most transactions are made through centralized exchanges is the fact that decentralized platforms do not offer using fiat currencies. Decentralized exchanges are based on blockchain technology, so all transactions require digital tokens. This leads to people turning to centralized exchanges where they can buy cryptocurrency by using fiat money.
If you prefer acting fast and exchange whenever you want to, then using the services of centralized crypto exchanges will be your go-to method. Centralized platforms require fees, but they also offer more freedom.
Advantages of Exchanging Cryptocurrency on Centralized Platforms
Here are a few advantages of using centralized exchange platforms:
- Intuitive interface. Immediately after opening a web page of a centralized exchange, you know what to do. To start converting, you need an account. Then you go through the verification process. Then you choose a currency you wish to sell on the left side of the screen, and the one you wish to buy on the right. The exchange calculates how much you get for what you offer.
- Reliability and safety. Even though it is not recommended to keep your funds on any exchange and withdraw onto your e-wallet, centralized exchanges are at least safe when converting. These platforms offer an extra layer of security, plus ease of use.
- The ability to convert fiat money to cryptocurrency. If you aren’t a miner, then you need to get cryptocurrency. You can buy it by using fiat money on a centralized exchange.
- Overall great experience. If you believe one of the cryptocurrencies is about to increase in price, you can quickly buy it on a centralized exchange. Or vice versa, trade it for another, more promising coin.
Overall, using centralized platforms offers a better experience. It’s a much easier process, even though using these sites requires fees. But overall, the majority of transactions are done through centralized platforms, and that tells a lot.