The use of cryptocurrencies is becoming more and more profitable. However, sooner or later there is a need to ensure its withdrawal into the usual currency. At first glance, this may seem complicated, but in fact, there are relatively simple and convenient ways to do this.
1. Cryptocurrency exchange — what is it
As you know, for a long time, mankind used only fiat currencies, that is, those issued by a particular state. The exchange rate between them largely depends on the economic and political characteristics of the development of the countries that issue them.
Thus, one who has earned a certain amount can gradually lose some part of its value. The reason may be not only inflation, but also random events that are difficult to foresee in advance.
Therefore, the opportunity to exchange your money for something that will either slightly lose value over the years, or remain stable, or become more expensive, has always been in demand. The choice of such assets is usually very limited: these are precious metals, currencies of countries with developed economies, and some others. Recently, some cryptocurrencies have been added to them.
They have many features, in particular the following:
- They are not issued by any state, so their cost is practically independent of economics and politics. Of course, such a connection exists, but it is insignificant.
- Cryptocurrency ownership and transactions are anonymous, but, despite this, with a completely reliable and guaranteed ownership.
- Cryptocurrency can always be exchanged for regular money and used at your discretion.
At the same time, it should be borne in mind that the software for creating cryptocurrencies is publicly available, so that almost anyone who understands the relevant issues can issue their own coin. At the moment, at least two hundred different species are distributed.
All of them have their own characteristics that must be considered when choosing. The user needs to choose the most reliable among them to use. There are various methods of exchange, when using which a person pays the required amount in the selected cryptocurrency and receives the equivalent amount in the fiat currency he needs on his account.
2. Various ways of sharing
Cryptocurrency exchange methods can be classified into several ways. For example, most exchange options take place online, but it is possible to carry out an operation using a cryptomat.
The first category includes online bitcoin exchangers, cryptocurrency exchanges, e-wallet services and p2p exchange. At the same time, the use of exchangers for this purpose is the most common. In this case, the actions are as follows:
- The user must go to the exchanger’s website. He can find out the link to it on his own or use aggregator sites. The latter indicate the most reliable and popular exchangers, as well as the exchange rate. At the same time, it is beneficial to find a site with the most favorable rate.
- Sometimes the site requires registration, in exchange for which commissions are reduced for this user.
- After entering the necessary data, according to the prompts, the exchange is carried out.
Usually, those who carry out exchange transactions have significant holdings of various types of currencies. They fund one of their accounts and pay the customer from the other. For each transaction, there is a minimum amount for transactions.
Cryptocurrency exchanges are mainly for those who trade or invest in cryptocurrencies. An important feature of working on them is user identification. This is a requirement of the regulatory authorities. One of their functions is to exchange cryptocurrencies among themselves or for regular currencies. In particular, here you can get funds to a bank card.
Usually, the exchange takes place between individual users, while the exchange acts as a guarantor of such transactions. For the commission of the transactions in question, commissions are taken, the amount of which in most cases is 3% -5%.
The use of exchanges is significantly more reliable compared to exchangers. However, there are certain risks here. These include the possibility of closing the exchange or stopping the execution of deposits or withdrawals of funds. Another problem could be account hacking. Usually, in this case, the administration of the exchange is not responsible.
Another common method of exchange is the use of p2p platforms. In this case, the site makes it possible to exchange directly between counterparties. To perform such operations, clients make exchange offers indicating the desired rate. At the same time, the counterparty finds the option he needs and enters into a deal to carry out the exchange.
The disadvantage of this method is the low level of liquidity. Turning to such services, you need to remember that for this it is not always possible to find a second party to complete the transaction. It should be taken into account that the exchange procedure can take a significant amount of time.
For exchange, you can use electronic wallets. Some of them have built-in capabilities for operations with cryptocurrencies. The funds available there are well protected. When exchanging, you need to take into account that in different payment systems the amount of commission fees can vary significantly.
A very convenient way of offline exchange is the use of cryptomats. These devices look like ATMs. To make an exchange, you need to do the following:
- You need to enter your details from your passport.
- Specify the code of the cryptocurrency wallet and the amount to be transferred.
- A receipt is issued on which a QR code is printed.
- Funds are being transferred.
- A receipt is issued for the transaction.
This method is convenient, but the use of cryptomats is still not widespread enough.
3. Advantages and disadvantages of online exchange
In this case, the user can take advantage of the following advantages:
- Actions happen at high speed. Usually, it takes no more than 10-15 minutes to complete an exchange operation;
- The complete anonymity of such actions allows clients to dispose of funds at their own discretion in the right way;
- The exchange procedure, which is implemented on the respective sites, is well thought out and does not cause difficulties even for beginners. Intuitive actions can significantly reduce the likelihood of random errors;
- A significant advantage is the presence of a large number of exchange options. Typically, the customer has the option to choose among many options, including using bank cards or e-wallets;
Some exchangers may have their own offices in which the corresponding amounts are accepted or issued. However, when using such methods, it is necessary to take into account the possible risks. The most important is the likelihood of becoming a victim of scammers.
To avoid this, you need to carefully choose the right site. It is advisable to apply to those who have a solid reputation and have been working in this field for many years.