Cryptocurrency has taken over the investment market since its advent when the value of the first coin named Bitcoin was at $0. Which, however, is at $37,721.52 now, as updated by CoinMarketCap. The trendsetter is followed by other leading coins like Ethereum, Tether, BNB, USD Coin, and others. These have also experienced massive growth and that too in just years. The top-ranked cryptocurrencies are readily available on Crypto Online Exchange platforms that provide a user-friendly experience. Furthermore, they allow Buying Crypto with Fiat which has somewhat cured the nail-biting scenarios faced by newbies. Keeping the tokens on the exchange is probably the most secure and easiest way that enables users to manage their purchases. These platforms are unregulated which means that if the consumers lose something it’s gone forever. However, to overcome this there are multiple solutions, for instance, types of exchanges with distinguished traits.
What are the Different Crypto Online Exchange Platforms?
Online cryptocurrency exchange platforms, more than 200 in number, allow users to buy, sell, and trade cryptocurrencies. However, they are not the ones that set the prices, rather they are determined by the market. The exchanges reflect the up-to-the-minute pricing to retain their credibility. In this race, there are three types that compete.
These are third parties also termed brokers that make sure that the transaction is carried out as intended. This may seem counterintuitive as the main trait of digital cryptocurrency is that it is decentralized because it is backed by blockchain instead of a central authority. This makes them vulnerable but secure at the same time as they allow users to buy crypto with fiats in a monitored way. Furthermore, centralized exchanges are preferred on decentralized and hybrid ones.
On the contrary, decentralized exchanges or DEX operate without a third party as they allow peer-to-peer trading. Along with this, they are open source platforms which makes them closer to the concept of cryptocurrencies. Moving on, there are no servers to hack or any external entity involved which to a great extent eliminates the chances of risks and frauds. Furthermore, the transactions are secure and a lot faster than those on centralized exchanges with fewer fees. However, all these traits make it complex for the users to use their conventional money to buy cryptocurrencies. This is so because they might need excessive and advanced tech know-how.
The hybrid exchanges are the platforms that are created as an attempt to blend in both the pre-mentioned types into one. The aim is to provide consumers, from around the world, with the convenience of the centralized exchange along with the security and liberty of a decentralized one. However, the new concept is still in the line to get widely accepted but once it will be, the crypto enthusiast and investors will be more than jovial.
Opening Several Gates – Buying Crypto with Fiats
Unlike the initial stage of the crypto market, consumers can now deposit their conventional money into their online accounts. May it is Euro, US dollars, yen, or other leading currencies, users are now trading them with digital coins. However, Buying Crypto with Fiat requires KYC compliance, in this, the exchange asks for an identity verification document. This is another step to ensure security and authenticity. This process is far easier and quick as compared to the wire transfers because the users can immediately transfer their purchases into their crypto wallets. There is another method used for this type of purchase that is Crypto Buy with Credit Card.
Buying Cryptocurrencies with a Credit Card – Opening more Gates
Similar to the direct fiat-to-crypto purchase through a bank deposit, the credit card payment method is also secure and quick. In this, users can make card deposits or directly purchase from their credit cards by linking them to their accounts. As per earthweb, there are currently more than 300 million consumers around the globe who are using cryptocurrencies. They have gained ownership by using one of these methods. Before opting for a credit card purchase it is foremost to keep the fees that the exchange is going to charge in mind. However, it is as minimal as 3%. Moving on, the direct Crypto buy with Credit Card enables users to buy coins at real-time prices. This provides high-profit chances in the future. Furthermore, after depositing the fiats in the account, users can make purchases when they think the conditions are favorable. Also, the consumers can use their regular cards like VISA or MasterCard to make the purchase.