Why do cryptocurrency exchange services stand in the spotlight?

6 months ago 54

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Along with the more notorious virtual exchanges, crypto conversion services receive recognition around the globe. These facilities allow purchasing cryptocurrencies for fiat or interchanging multifarious crypto coins. In most cases, cryptocurrency exchange centers are Internet sites, but they can also be physical offices that customers visit.

As a rule, the functionality of the so-called crypto conversion hub is effortless. A user specifies the currency he wants to purchase and the method of payment for it. The ways of buying cryptocurrencies in different services may vary. For example, it can be only other cryptocurrency wallets or wallets of fiat financial services, bank cards, or even cash.

The main discrepancy between virtual exchanges and online crypto exchange services is that they do not provide a fund storage facility. To buy crypto here, you should first open a cryptocurrency purse, where the coins will be transferred.

Also, crypto exchange platforms are not suitable for active trading. Trying to trade here in this way is about the same as buying and selling US dollars in a traditional currency exchange service. In principle, it is possible to earn, but, in most cases, spreads and commission will “eat up” the profit, if you often conduct operations.

Usually, people use the services of exchange centers when they do not need other functionality. Already these days cryptocurrencies are often used to pay for services or contracts. This method is relevant for all those who are not interested in alternative opportunities for cryptocurrency earnings, or who are trying to save their savings after market destabilization.

Virtual currency exchange spots were created as a “transit point” between the user and cryptocurrency, so their creators do not pursue the goal of keeping the same users. A considerable number of people pass through them every day, and cases of constant use of the same crypto exchange among traders are rather rare.

Are crypto exchanges safe?

In terms of security, crypto exchange services even have an advantage compared to exchanges. After all, these platforms do not store funds but only transfer them to the right address. An exchange stores funds in its accounts. This is a risk because, in case of improper risk management, the exchange can wash out (as happened with FTX).

But there are certainly risks in referring to crypto exchange services too. At any moment, both a crypto exchange and a crypto exchange hub can deceive users, “burst”, go bankrupt, have a system failure, go beyond the limits of marketability, and fall under regulatory factors influencing the market.

In addition, exchanges are often better known than exchange services. They have been operating for a long time, they have a larger number of clients, and they invest significant funds in marketing activities. That is why they are relevant today. At the same time, if you just look about a crypto exchange center through a search engine, there is a greater chance of encountering fraudsters. Before using the services of an unknown platform, it makes sense to look for more information about it or test its work by converting small amounts.

What to pay attention to?

Crypto exchange centers have 2 ways to make money. The first one is commissions for services, which as a rule are in the range of 1.5%-5%. There may be additional fees from a bank or financial company, as well as for the cryptocurrency blockchain. Some crypto exchange platforms may report not taking commissions or charging a symbolic fee. However, here you should consider the rate at which they sell or buy cryptocurrency as it often differs significantly from the one put up by crypto exchanges. Whether such a difference is acceptable is up to each client.

Godex platform is for conversion with benefits

Godex cryptocurrency exchange hub allows remote users to interchange various cryptocurrencies quickly and securely. It supports more than 300 currencies, including the mainstream Bitcoin, Ethereum, Ripple, Litecoin, and many other types of altcoins. The Versus pairs section on the Godex website is very convenient for those customers who want to analyze trading couples in more detail, where you can compare LTC and XMR and many more crypto pairs.

Godex offers clients beneficial rates, cheap order processing, and anti-dodgery facilities. The platform uses advanced technologies to ensure the security and privacy of its users’ data.

The technical support service works almost around the clock and is ready to answer any questions of its customers. There is a referral program and bonuses, the fees are minimal, and registration is not required.

The platform’s close-knit team is focused on results, and the large number of positive reviews of the service speaks for itself. The platform’s close-knit team is focused on results, and the large number of positive reviews of the service speaks for itself.

 *This article was paid for. Cryptonomist did not write the article or test the platform.

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