Let’s analyze how the centralized crypto exchanges like Binance, Coinbase, Bittrex, Kraken, and others operate!
For instance, you want to enter into the crypto space with a minimal amount of investment from your savings. You want to buy the cryptocurrency of your choice that values around $5K. But, exchanging the fiat currency to the crypto coins can happen only through trading. You must register with an exchange platform that can pick the trade partner of your choice by completing all the KYC/ AML processes. Once the exchange platform performs the trading, it charges approximately 0.25% of the transaction fee, which is higher in terms of crypto assets. This is what happens around your eyes!
Let’s look at the back of the mirror that happens in crypto trading!
When the buyer registers in crypto exchange for trading with the details, the request is accepted and considered as “buy order.” If there is a matching “sell order,” the exchange platform steps ahead with crypto trading. If the seller is not satisfied with the buyer requests in the order book, he creates his own “sell order.” If the seller wants to withdraw the trade amount in fiat currency, he/she is charged a 0.25% fee (maximum) for the transaction. Thereby the fee amounting to the percentage is levied
as the hidden charges by centralized exchange platforms.
Now let’s take a look at the real, ethical cryptocurrency transaction that is operated through P2P Cryptocurrency Exchange Platforms!