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The popularity of cryptocurrencies is gaining momentum, and the number of its holders is increasing every year. But despite the hype around digital coins conversion remains a problem. We are to tell you about 4 possible ways to exchange cryptocurrency for a traditional currency aka fiat, revealing their pros and cons.
Online Services
This option is one most in demand. Online services attract customers with a convenient and simple operation scheme. In addition, many of them support the usual payment systems and feature quick conversion. For example, using Coinbase, Bitchange.online and Bitpanda, you can securely exchange, buy and sell BTC in minutes.
However, the reliability of some exchangers is questionable. Since, due to the growing interest in cryptocurrency, many scammers began actively using online exchangers to steal money and personal data. Also, users should pay attention to the commission the operation charges as it may be unreasonably high.
Meeting in person and changing ‘from hand to hand’
The world of blockchain and cryptocurrencies unites many enthusiasts. Sometimes even whole communities and cryptobrotherships are created, whose members are always ready to help each other. Therefore, the proposal to exchange cryptocurrency in such chats seems quite natural and safe. The terms of the transaction are pre-negotiated between users, after which the rate is fixed and the exchange is carried out.
Of course, not always friendships are a guarantee of 100% security. Therefore, it is important to remember that in the event of a conflict, the cryptocurrency transaction can’t be canceled, yet the fiat seller will be capable to return money. Also, you should be on the alert and monitor fluctuations in transaction fees, which can vary from 2% to 5% depending on the growth of the coin or token.
OTC Providers
These are over-the-counter agents, which for a certain marry the the buyer and the seller. Basically, they take up transactions with large amounts and focus on cooperation with serious investors who prefer to use the services of a trusted broker. This method saves the client from the need to dive into the exchange mechanisms, since the agent will do everything for you.
In addition, such over-the-counter transactions bypass restrictions on the amount of funds and the ban on cryptocurrency in some countries. But, this option can cause the leak of personal data and theft of customer funds, so the security of the transaction remains in question.
Centralized cryptocurrency exchanges
This is one of the most popular ways to exchange cryptocurrency for fiat. Centralized crypto exchanges is where the largest number of transactions occurs. At the same time, the client does not deal with other users, only with a platform that provides all the details of its activities: the location of the servers, information about the management company, etc.
Exchanges carefully approach the procedure for identifying customers, trying to comply with KYC and AML, so registration is necessary. Although hackers arrange attacks on servers from time to time, many large platforms have a fairly high degree of protection. For example, EXMO, on which the CRON coin is presented, is considered one of the safest exchanges in Europe.