Also known as cryptocurrency exchange houses, exchange platforms are companies that buy and sell cryptocurrencies for fiat currencies (dollar, euro, real, pesos) or for other cryptocurrencies.
In this sense, the exchange platforms are true pillars of the crypto world. They fulfill the important function of extending access to cryptocurrencies to a broader audience. Ultimately, its existence allows for greater integration of crypto with the rest of the economy.
Since Bitcoin's inception in 2009, many things have changed with respect to exchange houses. Initially, when the cryptocurrency was still taking its first steps, the operation of the exchanges was marked by amateurism, low trust and countless scams.
After more than ten years, the scenario is different. In a market valued at more than $ 900 billion, and expected to grow even more in the coming years, exchanges have become professional and have become gigantic businesses. Nowadays, transparency and compliance are key for this market.
Exchange Platform: What is it? How does it work?
Registration at the exchange office
In most exchange houses, the first step will be to register on the platform. For this, it will be necessary to provide your data, copies of your documents and, in some cases, even a confirmation selfie.
This process of registration and confirmation of identity is known as KYC, which is the acronym for Know Your Customer .
Although this process gives more security to the company, which will have a mountain of data from each of the registered people, from the customer's point of view the need to register can be uncomfortable.
After all, the KYC is quite questionable. In addition to being bureaucratic, as it can take a few hours to become effective, such a process ends with anonymity, which is one of the main pillars of the cryptocurrency industry.
Deposit at the exchange office
Once the registration has been made and approved, the buyer must deposit their $ 100 in their account on the exchange platform. In general, platforms accept payment in several ways:
- Credit or debit card;
- Wire transfer;
- Ticket;
- Virtual payment platforms (PayPal, Neteller, Skrill, etc.).
The largest exchange houses on the market are custodians. That is: they store their money. However, for those seeking more security, this may be another obstacle to traditional trading platforms.
First of all, the question of trust: you have to trust that Exchange will correctly store your money, that it will not be hacked and so on.
Also, the big problem may be the difficulty of moving such a value afterwards. If you want to transfer your $ 100 back to your bank account, you will probably have to pay some service charges.
Buy / sell at the exchange office
Once the $ 100 has been registered and deposited into your Exchange platform account, it is time to buy your Bitcoins. For that, there are two options:
- Limited orders : in this case, the buyer enters the amount he wants to pay. If the platform finds a seller who accepts the price, the purchase is made.
- Market orders : in this case, the purchase is made at the best price available at that precise moment.
Once the transaction is completed, the purchase of your Bitcoins is completed.
What is the largest exchange platform?
According to CoinMarketCap , the largest exchange platforms, in terms of liquidity, are:
- HitBTC;
- Bitfinex;
- Binance;
- Global Huobi;
- Kraken.
All major exchanges offer crypto buying and selling services. If you want to use them, you should check if they operate in your country, if they accept your local currency and what fees are charged. In addition, all of them require registration (the so-called KYC) and are custodians.
Use Crypto Exchange to exchange cryptocurrencies!
Conscious of the main needs of the users of the crypto world, we create the Crypto Exchange . Based in Chile, we offer our services in all Latin American countries.
At CIC we do not work with fiat currencies (dollars, pesos, reals, etc.), but only with exchanges between cryptocurrencies. On our site, we offer the possibility of exchange between more than 110 types of crypto, with altcoins, stable coins and tokens.
To offer the best possible price to our clients, our algorithm searches for prices on the main exchange platforms in the world and displays them on the main page of our website.
The main characteristics of our service are:
- Anonymity: We do not have any type of KYC. We value anonymity above all, and to use the CIC it is not necessary to register.
- No commission: We do not charge commissions for making transactions between one cryptocurrency and another.
- No custody: we do not store your money. Cryptocurrencies leave their virtual wallet and, after the exchange, return to their virtual wallet.
- Security: during transactions, you can monitor the status of your money at any time.
- Speed: each transaction takes no more than a few minutes to become effective.
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