To help you understand how a crypto exchange can be of benefit to you, it would be useful to know what cryptocurrency stands for. Let us explain:
- Cryptocurrency is digital money they would use code to create it with
- It is free of all governmental oversight, and it’s monitored by a peer-to-peer internet protocol
- It is encoded to signify one unit of currency.
Some examples of crypto used these days, would be; Bitcoin, Ethereum, and the Ripple
Now that you gained a better understanding, you may want to know the pros and cons attached to making use of digital currency exchange.
Needless to say, it can be both a blessing and a curse to trade through a decentralized exchange.
People love the fact that you can trade without the interference of a middle person so they can buy and sell as they please.
These exchanges require users to register for an account before they are allowed to trade. The moment they do trade, they can list any crypto coins to sell, or go ahead and buy someone else’s right away.
Following are some of the benefits to do with trading on a decentralized exchange:
- Many exchanges run on a decentralized server, meaning it is not located in a single location, but spread around the world. Some of these would exist solely in the cloud. This way of hosting makes it hard to hack and would secure data and funds.
- Not limited to a physical locale, which makes it harder to regulate or shut a decentralized exchange down. This is good news for those of you who choose to use Bitcoin while living in places where it is deemed illegal.
- One would be more private as most exchanges would allow individuals to set up an account under another name with little to no approval. This is not something governments would favor, but attractive features for those who are not happy that Big Brother tracks their every move.
- When you utilize a centralized exchange for storing your crypto funds, then you potentially open yourself to hackers. Whereas a decentralized platform leaves the ownership of such currencies in the hands of users that act within the confines of a peer-to-peer platform.
- Once you created an account with a trusted crypto coin exchange, you will no doubt have many questions troubling your mind and would want answers to these.
First of all, it would put your mind at ease to discover more information as to why you should be using cryptocurrency.
Top trading platforms will point out why you need to make it your resolve to trade using crypto coins, some of the positives are discussed below:
- The integrity of transacting – The main benefit is that crypto cannot be transferred to third parties without the input of the user. They would have full control of the currency and the transaction that is hosted on the centralized platform. No third party would be able to manipulate the payment to their advantage. At the same time, the sender cannot reverse their payment.
- Track any payment 24/7 – When you use traditional banking, you often have to wait three days or longer to be able to track your payment. This creates a lot of uncertainty for both the receiver and the sender of the funds. While cryptocurrencies can be tracked on a second to second basis. This creates security for both the receiver and sender.
- Security of transactions and currency – Within the online sphere, our world is filled with fraudulent credit card transactions and theft. Rather than being scared that your credit card details are exposed online, cryptocurrencies are currently seen as the safest way to shop online without any risk.
- You own it – Instead of saving and securing your funds in brokerage houses, investments, or banks, where you are subjected to their TCs, having to pay out huge fees, cryptocurrency lets you keep what belongs to you at no extra charge.
- Speedier transactions – When you deal with lawyers or are about to buy vehicles or property, you can make yourself ready for a tedious process that takes a longer time than expected due to bank approvals, etc. When using cryptocurrency, you can make immediate payment on any asset acquisitions.
To summarize, using cryptocurrency is not just reserved for the very wealthy, but it is a currency that is in place to simplify the lives of ordinary citizens.