Few people come to the world of crypto-economics just to admire its capabilities. As a rule, a person who is interested in cryptocurrencies suggests making money on them one way or another. For example, buy a couple of bitcoins, which still remain a good long-term investment, despite all the fluctuations in the exchange rate. Or mine a few coins and exchange them for fiat funds.
However, in the first encounter with the need to sell or buy cryptocurrency, you may encounter the question of the most effective, profitable and convenient ways to exchange cryptocurrencies for fiat funds and vice versa.
We say “ways” because, say, 3-5 years ago there were not many options. Now, the variety of exchange opportunities has stepped forward, allowing users to select a platform for the exchange specifically for themselves, their requirements and wishes.
Let’s look at a specific example of which platforms will be the best option if you suddenly decide to buy or sell several bitcoins.
Physical exchangers in major cities
Perhaps one of the most understandable ways to exchange cryptocurrencies, since it is very similar to the familiar currency exchange mechanisms, for example, in a traditional bank. Just in this case, instead of a bank, you come to a certain company where you make an exchange with cash.
Take for example the imaginary Maxim.
If Maxim wants to use a physical exchanger to buy bitcoin, he will first have to find an office that offers similar services. For example, having studied all the available information on crypto forums or chats in Telegram. Maxim is a resident of Moscow, he easily finds an office, comes to the exchanger, brings money and cryptocurrency is credited to his wallet.
The advantages of this method are its simplicity and greater familiarity, as well as the fact that Maxim has the ability to maintain complete anonymity.
Physical exchangers are a good choice if you need to exchange large amounts in the hundreds of thousands of rubles. However, if you, like Maxim, need to exchange a relatively small amount of funds, you may run into problems – it’s profitable for the exchangers to play big. It is also unlikely that in a physical exchanger it will be possible to buy a crypt, which is not included in the list of the main and most common ones.
Online exchangers on the Internet
In favor of choosing this option for the exchange is the fact that online exchanges allow you to change smaller amounts and, of course, save time.
Since Maxim is a busy person, and he does not need to exchange so much, he decides to look at the option of buying bitcoins via the Internet. The scheme of work of the online exchanger is completely similar to the scheme of the physical, only the meeting place will not be an office, but a site.
To find the best exchanger, Maxim turns to the statistics of the aggregator bestchange.ru
The advantages of this method are the same as above – the simplicity and familiarity of the exchange, the ability to maintain anonymity. An additional advantage of online exchangers is the ability to exchange amounts from the smallest to medium.
The downside will again be a high risk of falling into scammers and a limited selection of cryptocurrencies. It is also necessary to consider that an online exchange takes from 5 minutes to an hour and a half, and the exchange rate in such exchangers is often much less profitable than, for example, on exchanges.
Not wanting to lose money on the difference in rates, Maxim decides to directly use the services of the cryptocurrency exchange – the platform on which traders make trading operations.
He searches for reliable exchanges on his own using Yandex or Google. An unpleasant discovery is a fact that not all exchanges support trading on the cryptocurrency/fiat prince, and those that support often have high commissions for such operations. For example, the well-known Exmo exchange takes a commission from deposit/withdrawal operations using rubles in the amount of 4-5%.
Pretty soon, Maxim realizes that exchanges are an ideal place for cryptocurrency trading, which he may decide to do later. However, since now he just wants to buy 1 bitcoin, this is not the most convenient way to exchange. Understanding the operation of the exchange is not so simple, but in order to start serious trading, you first need to spend a considerable amount of time studying at least the very basics of trading. Otherwise, Maxim risks losing significant amounts on rising and falling rates.
After reading the articles and browsing the websites of exchanges, Maxim concludes that for him, as a novice investor, there is so far only one plus in exchanges – the exchange rate. While there are many more minuses: a complicated interface, the need for registration and verification (goodbye, anonymity!) If Maxim decides to exchange large amounts. And also – additional fees for depositing and withdrawing funds, as well as restrictions on the amount of withdrawal per day.
After evaluating the cons, Maxim decides to find safer ways to exchange, and on the recommendation of a friend finds a P2P exchanger Bitzlato. Maxim almost immediately sees that in such a service you can exchange any, even the smallest amount of cryptocurrencies, according to a simplified scheme and with high guarantees.
Assessing the experience with exchangers, Maxim determines for himself their main advantages:
P2P exchanges have a clear interface, which facilitates their use and saves time spent studying the features of the service.
They usually either do not have a complex registration system, or it is simplified in comparison with, for example, crypto-exchanges, even if you plan to exchange large amounts. This fact allows you to exchange currency in a fairly quick time.
Transfers are carried out promptly and automatically. You can also deposit and withdraw funds quickly enough.
Usually, the service side does not have a maximum amount threshold for withdrawing funds – it is limited only by the offer of traders.
The direct drawback of P2P exchangers Maxim defines only one:
The exchange rate in them depends on the exchange rate on the most well-known exchanges, however, a mark-up is usually added to this indicator. In different exchangers, the commission can vary quite significantly – from 0.6% to 10%, accordingly, the issue is decided by selecting the most suitable exchanger with a lower commission rate.
The selection of a suitable trading platform should be based on the goals, objectives, and preferences of a particular investor, however, there are a number of significant advantages for P2P exchanges. Yes, there are drawbacks, but exchangers remain a faster and more convenient way to exchange cryptocurrencies. Especially if you are not interested in serious trading games, but just want to put your crypto assets into fiat or, conversely, buy some coins for storage.
When choosing a P2P exchanger, be like Maxim and be sure to look for information about the service before deciding to use its services. Important indicators that will help you choose a quality site will be the size of the commissions, the number of currencies available for trading and the duration of the service, which indicates its reliability.
Especially so that it would be more convenient for you to choose a suitable platform for P2P exchange, we have compiled a comparative table of the main services.