Crypto Exchange: Is it Worth to Use Exchanges?

Cryptocurrency keeps gaining popularity. Certain events in the past have shown us that sometimes good investment in a digital coin can lead to great profit, just like at the beginning of 2021 and Bitcoin.

Luckily, Bitcoin is not the only promising cryptocurrency. Now and then new digital tokens emerge, offering various benefits. For example, certain blockchains offer solutions to certain problems, and thus, tokens rise in price. So, it’s a great idea to get this potential promising currency. You can do that by using exchange platforms. For example, convert btc to eth or any other promising currency.

But how to get cryptocurrency? One of the easiest ways of getting a cryptocurrency is using an exchange platform. Yes, you can start mining digital tokens, but that’s a pretty expensive process. Check out the article to learn more about exchanging digital tokens and using exchange platforms. 

The Benefits of Using Crypto Exchange Platforms

If you compare exchanging to mining digital tokens, exchanging seems like a better option, and here is why:

  • Does not require having mining equipment.
  • It’s a fast process, whereas mining takes a while.
  • You don’t need any knowledge about mining.
  • When exchanging, you can quickly react to the situation on the market.
  • When mining, the currency you mine can get outdated (drop in price).
  • You don’t need to spend thousands to pay for the electricity bills.

Mining is a rather tedious process even though most miners aren’t involved directly, they just set up equipment. Overall, exchanging seems like a more easy solution for those who just want to gain passive profit from crypto trading. 

Types of Crypto Exchange Platforms

Typically, there are two types of crypto exchange platforms:

  1. centralized;
  2. decentralized.

A decentralized platform is probably one of the most convenient platforms out there. It works just like the online exchange of fiat money. You create an account, verify it, and use the website to buy the needed currency.

A decentralized exchange platform is a system that connects buyers and sellers. A seller offers to sell a certain number of digital tokens for a certain prize, and a buyer decides whether to buy these tokens. Such a platform has no fees or they are very low. The disadvantage of such a method is that it’s not working 24/7, and it takes a while to find the needed digital currency.

That’s why most people use centralized crypto exchanges. They require paying a fee because of the third-party services, but the fee is usually pretty low. These websites work 24/7, and normally, have all popular types of currencies in stock.