Cryptocurrency exchanges are websites offeringthe facilities of buying, selling, or exchanging the cryptocurrency with other digital or traditional currencies. These exchanges work similarly to other transactions of assets like stocks. Cryptocurrency exchanges are typically open for 24 hours a day, seven days a week. For dealing in cryptocurrency, you have to open a bank account by verifying your ID. There are several cryptocurrency exchanges actively working. These exchanges provide the service of cryptocurrency dealing with ease. Not only this, but various new cryptocurrency exchanges are also established for smooth functioning and trading of currencies.
There are three types of crypto exchanges working currently.
- Trading platforms
It consists of various websites that connect buyers and sellers and charge an amount as a fee from each transaction that takes place.
- Direct trading
This platform offers direct transaction between person to person trading where various individuals from different countries can exchange their currencies from their bank accounts. There is no involvement of the market rate in it the seller himself decides and sets the rates of exchange.
These are the websites where anyone can buy cryptocurrencies that too at a price set by the brokers themselves. The brokers are similar to dealers of foreign exchanges.The process of purchasing cryptocurrency:-
The exchanges need verification requirements which are known as KYC, i.e. Know Your Customer. It also helps in detecting any previous record of the customers to create a safe base. The KYC requirements vary from exchange to exchange so it can’t be said that it has some necessary and fixed process to follow. It can take a few days in the process of approval after getting approved, and one can quickly deal in cryptocurrency.
● Funding your account
Many exchanges go with the step of funding of accounts. There are various options for financing accounts from bank transfers to credit and debit card purchases. You have first to set the payment mode initially the exchanges will make 2 to 3 transactions by debiting and crediting your account and ask you to verify the amount well. After verification, your funding method will be set up for a long time. The charges charged by the exchanges also vary from one to another. So nothing can be much said about the costs, and fees get charged on transactions.
Again, the process and steps of withdrawals also vary from exchange to exchange. Some exchanges may charge fees on departure, or some may not charge. The method of removal can be around 3-5 days long. Nothing is fixed in cryptocurrency trading, and it is good to go with the complete information about the exchange with which you are connected. It will reduce the problems and questions and provide you with the best ways to overcome the situations.
● Purchasing crypto
There are mainly two ways of purchasing cryptocurrency. First, using fiat to buy a cryptocurrency and second, using crypto to buy another crypto. It entirely depends on you which option you will consider for making transactions.