Many people face the question of how to exchange cryptocurrency. Many are also interested in the legality of such operations, exchange rates, and the number of commissions. Before exchanging Bitcoin or other coins for fiat money, it is necessary to study different ways. Each option has pros and cons.
Is it legal to exchange cryptocurrency?
Consider how to exchange Bitcoins and other cryptocurrencies for real money. In some cases, you will have to take more risks. In others – to overpay, in others – to give up anonymity. There are no perfect solutions, but there are compromises. And I also advise reading what cryptocurrencies you can mine. To choose the ideal exchange XMR to BTC, use Alligat0r.com.
Online exchangers are analogs of the usual exchange offices only on the Internet. They have the following advantages:
- A large selection of currency pairs. You can exchange Bitcoins for Ether, Ripple, and other popular cryptocurrencies.
- High speed of transactions. With the automatic exchange of cryptocurrencies, the money will come to your account instantly.
- Lack of strict limits.
The main disadvantage is that you have to pay a commission of 4-10% of the amount for the exchange and lose some money on differences in rates of cryptocurrencies.
Cryptocurrency exchanges allow you to exchange Bitcoin and other coins at the market rate. As a rule, a commission is charged only for deposit/withdrawal of funds and is 1.5-4% depending on the selected payment system. That is, with this method of exchange, you lose less money. Exchanges have many disadvantages:
- time limits;
- limits on the maximum amount for withdrawal;
- the high risk of account hacking and funds theft;
- possible questions from the bank when crediting money to your card from your cryptocurrency account.
Trading platforms require verification: send passport data, photo-selfies, confirm residence address. Otherwise, participants can not fully use the functionality of the site.
But cryptocurrency exchanges are sometimes the only option on how to exchange tokens (assets that are issued by private companies when launching startups to attract investment).
The most profitable and, at the same time, risky way. Participants of the transaction independently agree on the rate, the amount to be transferred, choose the payment system for the transfer. The people exchanging cryptocurrency should know each other personally.
This method of cryptocurrency exchange combines the advantages of direct exchange and cryptocurrency exchange. That is, you do not lose money on exchange rate differences while conducting the transaction through a guarantor, minimizing the risks. You only have to pay a symbolic commission for creating the ad or the transaction itself – 0.5-1%.
Let’s summarize how it is more profitable to exchange cryptocurrency for BTC. If you want to save as much money as possible:
- Contact your acquaintance directly or go to a P2P platform.
- When you sell tokens or a small amount of cryptocurrency, choose exchanges.
- Only withdraw money from your account right away.
Stationary and online exchangers, payment systems, crypto machines are less profitable ways of exchange. But this is the case when you have to pay for convenience and security.