There are several ways to swap digital currency in the cryptocurrency market. The choice is between the exchanges and swap services, or exchangers. Both offer a wide range of digital currencies, a lot of altcoins at an affordable cost. So what is the difference? Where it’s better to exchange Bitcoin — on crypto exchange or the exchange service?
Crypto 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 or fiat-to-crypto.
Cryptocurrency exchanger: It’s a service that offers to exchange cryptocurrency 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.
- Exchangers are guided by the exchange rate which is taken from popular exchanges. But they also add a margin to the main cost, an additional payment, which pays for the work of the site. On average, the amount can vary from 0.3% to 5%, depending on how much you want to exchange and if you exchange cryptocurrency or fiat. On exchanges, the commission is up to 0.5–1%.
- Some exchangers’ support teams may work 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.
- Exchangers provide a limited number of coins to buy, while any crypto exchange has a reserve of funds that can be used if a trader decides to buy a large amount.
Advantages of crypto exchanger
- Exchangers have a simple interface because there is no need to present analysis schemes and features of cost changes.
- No need to register or pass verification, so you can buy cryptocurrency in a short time.
- Currency exchange platforms have a system of integration with popular payment services, so you can quickly transfer funds.
- Most often, swap services do not have a minimum amount for exchange, as well as the maximum. In fact, it is sometimes possible to exchange even a single coin.
- As for the services for exchange, they are customer-oriented. Usually these services provide quality support.
Advantages of crypto exchange
- In terms of reliability, when it comes to the exchange of large amounts, it is better to choose a crypto exchange that has been long on the market and has a good reputation.
- In terms of price, a more favorable rate can be found on a crypto 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 the cryptocurrency at a better price.
Let’s sum up. Crypto exchanges have more advantages for professional traders. but if you need to urgently swap a small amount of cryptocurrency, an exchanger is better than exchange.
Originally published at https://swapspace.co.
Exchanges and Exchangers was originally published in The Bullish on Medium, where people are continuing the conversation by highlighting and responding to this story.