Are you afraid of the intermediary charges that your bank takes off from your pocket in fiat transactions? Here come the cryptocurrencies that can be traded across the globe with high speed, accuracy, and no intermediaries!
Do you remember? This is how cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple, and others were landed into the world! But, now why is the cryptocurrency exchange platform booming? Isn’t it contradictory to the ethics of cryptocurrency invention?
Now let’s take a deeper look into how centralized and P2P cryptocurrency exchanges operate and take off the intermediary charges from the traders!
How Centralized Cryptocurrency Exchange Platforms Operate?
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!
How P2P Cryptocurrency Exchange Platforms works differently from the traditional exchanges?
The seller creates his order request and advertises a P2P exchange platform. Crypto enthusiasts can look for the best deal of their choice and then proceed with the trading of assets. If the buyer is not satisfied with the list of order quotations, he/she can create their request for a trade deal!
The P2P crypto exchanges provide escrow services if required for the safe and secure transaction. The seller is charged around 0-0.5% of the transaction, which is very minimal. P2P crypto exchanges provide more advanced features that allow the trade partners to maintain their own anonymity, security, and safe transactions.
The final verdict on P2P and centralized crypto exchanges!
P2P cryptocurrency exchanges serve the purpose of cryptocurrencies!
Switch over to the P2P cryptocurrency trading with our expert advice! To discuss more on this topic, let’s have a tittle-tattle on live chat or telegram!
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