Home Cryptocurrency 4 Things to Know About Cryptocurrency Exchange Fees

4 Things to Know About Cryptocurrency Exchange Fees

by Tracy Finke

The development of society brings constant changes that should facilitate everyday processes in the markets of goods and services. An indispensable part of the trade is money and its forms as a measure of value and a means of payment. With the processes of digitalization, products are becoming more accessible through online stores and various auction services, and distance and interstate borders are becoming less of a problem when choosing a supplier of the necessary goods or services. Credit cards have become a generally accepted means of payment in online stores.

In the last fifteen years, the term cryptocurrency has become more and more common when it comes to buying and selling, but also a new way of saving and earning.

Cryptocurrencies are digital money that was created in 2008, and their most famous representative was and remains Bitcoin. This currency was created by an anonymous group hiding behind the pseudonym Satoshi Nakamoto. Although it was not given the best forecasts because it had an extremely low value when it was released ($ 0.03) and was considered to be successful if it managed to equal the dollar, this currency very quickly exceeded all forecasts and expectations.

The current value of this currency is $ 42,079.60. One of the main decisions of cryptocurrencies is volatility, which means that their value can change at the virgin level, sometimes even more times.

When it comes to investing, there are two options – trading and mining. If the choice falls on trading, you will also have the help of software applications whose work is based on artificial intelligence, which helps to identify even the smallest changes in the market.

On bitcoin-code.live you can find everything you need to know about trading.  On the other hand, mining takes a little more time, but it is definitely worthwhile. Mining is a more frequent choice of more experienced investors because it requires large initial investments, ie high electricity costs.

Cryptocurrencies can be purchased at crypto ATMs and exchange offices. Shopping at ATMs is very simple – choose a currency, swipe a bank card and your money will be converted into crypto money and redirected to a digital wallet.

With digital money today, we can do almost everything the same as with any fiat currency – make purchases, invest, and even play in a casino. Some employers even motivate their workers by giving them a small bonus in cryptocurrencies. Whatever it is, one thing interests many – how to turn crypto into fiat money. Read below what you need to know about it.

1. Centralized and decentralized exchange offices

Source: binance.com

To begin with, it is very important to distinguish between these two types of exchange offices. Centralized cryptocurrency exchanges are online platforms used to buy and sell cryptocurrencies. The idea of ​​centralization refers to the use of an intermediary or third party to assist in conducting transactions.

This is common in a banking setting where the client trusts the bank to manage or hold the user’s money. Centralized exchanges are the most used because they are easy to use, easy to access, and provide advanced trading functionalities like margin trading among others. But they also pose a security risk to the assets used.

A decentralized exchange is an exchange market that does not rely on a third party holding service funds from customers. Instead, trades take place directly between users (peer-to-peer) through an automated process. Decentralized exchanges reduce the risk of theft by hacking, so they are more often chosen. Decentralized or “trustless” exchanges are very necessary for the safe trade of digital currencies – centralized exchanges are by their nature very sensitive to human error, greed, and hacker risks.

2. Difference in commission

Source: nacademy.bit2me.com

Each exchange reserves the right to determine the amount of commission and it may vary. It also depends on the amount you want to be exchanged from crypto to fiat money and vice versa. For that reason, it is always good to ask about the commission.

3. Two-way crypto ATMs

Source: cointelegraph.com

We mentioned that crypto ATMs are becoming more common all over the world when it comes to buying digital money. But there are also those two-way ATMs where you can convert cryptocurrencies into fiat currency.

4. Exchange for 24/7

Source: binance.com

Currently, online cryptocurrencies and stock exchanges are the most popular choices for buying and selling cryptocurrencies. The very fact that you can execute transactions at any time (24/7) and that every transaction is instant is attractive to a large number of users.

There are plenty of cases where people want to invest in cryptocurrencies but at the same time shy away from online exchanges believing they are complicated for ordinary users. Therefore, once they enter the physical crypto exchange, employees can gradually guide customers through the whole process. The choice is yours.

Final thoughts

The use of virtual currencies is very acceptable to pay for various digital goods in virtual environments but is increasingly being applied as well as a means of exchanging real goods and services. Virtual currencies have two main foundations from which they arose.

One is the inevitable process of digitalization of society, and the other is the need to create alternative or complementary forms of means of payment to conduct transactions. Digitization is based on infrastructure, which is the main prerequisite for the development of innovative digital solutions and thus the emergence of virtual currencies.

Irregularity and decentralization of this system it is considered to be its greatest advantage and the main reason for attracting a large number of people public and investors in the cryptocurrency market. On the other hand, this is also the cause of high cryptocurrency price volatility as it is formed in the market based on supply and demand.

Based on this, it can be concluded that this new type of property brings with it an opportunity to achieve high earnings but also a high risk of losses. Therefore, it is very important to do everything in your power to protect your investment, even if it means paying more commission or investing in additional equipment. Consider this a smart investment.