With the growth of the crypto market, users got access to a number of ways to exchange, buy and sell cryptocurrency: from exchanges and P2P services to crypto machines and offline exchanges. Bitcoin is the most popular cryptocurrency (#1 by market capitalization), so most online and offline cryptocurrency exchange services support transactions with this coin.
In the article we will tell you how to exchange cryptocurrency for fiat and digital currencies, how the main methods of exchange work and what criteria to choose a suitable platform for transactions.
Bitcoin: What You Need to Know
Bitcoin is the world's first cryptocurrency, which remains popular even 15 years after its invention. There are several reasons for its success:
- Decentralization. Cryptocurrencies are blockchain records, which are a database distributed across the computers of all network participants. This eliminates dependence on states or banks.
- Limited issuance. Bitcoin technology implies that the total number of coins cannot exceed 21 million. This eliminates the inflation associated with unlimited issuance: the value increases as the limit is approached.
- Open Source. Any member of the network can review the Bitcoin protocol and participate in its development, ensuring its security and transparency.
- Anonymity. For transactions involving Bitcoin, the sender of a transfer needs only the recipient's public key, which does not contain personal data. The sender remains anonymous.
- Transparency. Each participant of the blockchain network can view information about transactions made with Bitcoin. This excludes fraud and money laundering.
Bitcoin Exchange Methods
Online exchangers
An online cryptocurrency exchanger is one of the most popular services for such transactions. Various platforms offer the opportunity to exchange Bitcoin for rubles and other fiat currencies or transactions involving cryptocurrency pairs.
One of the exchangers working with cryptocurrencies is CryptoCloud. This service offers 1500+ pairs of coins, a choice of several providers with different rates, and transactions without KYC.
Figuring out how the crypto exchange works is quite simple. To perform a transaction, you will need to:
- Select a pair of currencies and specify the amount.
- Choose an operator from the offered options.
- Enter the address of your wallet.
- Send the required amount to the address specified by the operator.
- Wait for the funds to credit on your account.
Offline exchangers
Some cryptocurrency exchange services provide this service. The user needs to leave a request in advance on the website or another platform (for example, via Telegram bot) and then visit the office of the offline cryptocurrency exchanger to perform the operation.
The service is available to residents of many large cities. This method has the advantage of allowing the direct exchange of cryptocurrency for cash.
Crypto exchanges with a fiat gateway
Another service option where you can exchange cryptocurrency for other digital coins or fiat is crypto exchanges. Some major platforms support not only the exchange of cryptocurrency pairs, but also the purchase/sale of digital currencies for “regular” money. Such platforms include:
- Bybit — an exchange with support for 65+ fiat currencies and 100+ cryptocurrencies. You can use bank cards and accounts, e-wallets and other methods for payment. There is the possibility of instant purchase of “digits”, as well as P2P trading.
- MEXC is a crypto exchange that supports payment by bank cards, payment systems, Apple Pay / Google Pay.
- OKX — exchange + wallet, the functionality of which includes an exchange service (cross-chain aggregator), a converter for cryptocurrency pairs, limit orders and a platform for P2P-trading. To work with fiat currencies, a deposit system is used.
To exchange Bitcoins or other currencies on the OKX exchange, you will need to go to the «Convert» tab in the «Trade» section, select currencies and specify the amount. The operation will be performed automatically.
The second option is to use the functionality of the «P2P trading» tab, placing your own order or responding to someone else's. To make transactions, you need to pass verification and activate two-factor authentication.
P2P services
P2P services are cryptocurrency exchange platforms where transactions are performed between users. The platform's role is to help crypto holders find the other side of the transaction and provide security by guaranteeing the honesty of market participants.
P2P services can exchange Bitcoins without commission or with lower fees than centralized exchanges. In addition, such platforms offer flexibility: users can independently agree on the amount and payment method.
One of the Bitcoin exchange platforms for P2P transactions is KuCoin. To exchange you will need to:
- Place an order to sell BTC, specifying the amount and payment methods.
- Wait for payment from the buyer and confirm receipt of funds.
- Unblock the cryptocurrency to send to the buyer.
You can also place an order to buy the currency. After the seller confirms receipt of payment, funds will be deposited into the account.
Cryptocurrency wallets with built-in exchangers
Currency exchange is a feature offered by a range of cryptocurrency wallets. In this case, the platform's assets are involved, ensuring a fast transaction and a favorable Bitcoin exchange rate.
Although exchanging through the internal functionality of a cryptocurrency wallet tends to offer a smaller selection of cryptocurrency pairs than online crypto exchanges, it is a suitable option for popular coins.
Telegram bots
A Telegram bot can be a tool from an exchanger or exchange or an independent service. To perform an operation, you need to follow the bot's prompts. As a rule, you will need to enter a pair of currencies, the amount of interest, and the address of your wallet or account to receive assets.
After that, the bot will automatically perform the conversion and provide the address for making the transfer. Once sent, the assets will arrive in the user's account.
Crypto ATM
This is a tool that allows cryptocurrency to be exchanged for cash. The device is similar to a regular ATM but offers a digital currency exchange service.
Although this method of exchange offers a high level of security and convenience, it is not available everywhere: only residents of large cities can use it.
How to Choose a Bitcoin Exchange Method?
To find the right exchange option, it is recommended to focus on several factors:
- The exchange rate. Many platforms work with several operators at the same time, allowing the user to choose the most favorable rate. In addition, you should take into account the commission charged when exchanging Bitcoins.
- Reliability. Security is one of the most important factors. Most of the platforms from the top cryptocurrency exchangers conduct KYC and AML checks to protect against fraud and dirty cryptocurrency.
- Exchange speed. When using P2P services, the exchange speed can be quite slow because the second party to the transaction must be found to complete the transaction. Centralized exchangers offer a higher speed.
- Reviews. Reading them will help ensure the platform's safety and the absence of hidden drawbacks, such as account freezing, complicated verification, etc.
- Tech support. High-quality support, including the ability to easily talk to a person, not a bot, is an important factor in prompting the resolution of unforeseen problems.
- Interface. Its convenience allows you to easily perform operations even without experience. The advantages are visual graphs of currency exchange rate changes and automatic amount calculation.
Security Measures
There are several ways to ensure security when exchanging cryptocurrencies:
- Two-factor authentication. Additional confirmation at login and/or transactions reduces the risk of hacking. Many platforms use 2FA as a mandatory protection measure.
- Choosing trusted cryptocurrency exchangers. Unknown services may offer more favorable terms of transactions, but when using them, the risk of encountering fraud increases.
- Checking the reputation of the seller. Most P2P platforms use systems that allow you to familiarize yourself with the seller's characteristics: for example, to see the number of completed transactions or other users' ratings.
Cryptocurrency Exchange: What Method to Choose?
Crypto users have many ways to exchange Bitcoin: both online and offline. Residents of large cities can use crypto ATMs or offline exchange services. A more convenient way for most crypto users is online platforms, such as CryptoCloud. With their help, you can quickly exchange one cryptocurrency for another or buy/sell digits for fiat money.
Centralized exchangers offer greater reliability, P2P-platforms — flexibility. To choose the right option, it is recommended to read the terms and conditions, available currencies and payment methods, as well as feedback from other users.
