The main part of trading cryptocurrencies is made through the exchanges, but a good part of the cryptocurrency market is occupied by exchangers. Exchange services allow you to buy, sell or exchange the cryptocurrency. Sometimes it is a basic service, and sometimes it is an addition to the specific currency trading.
There are many differences in the technology and financial issues between exchanges and exchangers. But the main distinction between them is the fact that when referring to an exchanger, you conduct trading operations with it, while on the exchange you buy and sell cryptocurrency, not from the exchange itself (which only provides access to the trading market), but by working with the private owners of the cryptocurrency and fiat assets.
The main purpose of cryptocurrency exchanges is playing on the price of the asset, not the exchange operation of one coin to another . We are talking about trading signals, offering your asset prices. Having enough skill and analytical mind, you can not only exchange the funds to some currency but also augment them. However, it is connected with a large number of difficulties, starting with the registration on the exchange.
Most of these services require you to go through the full registration, including passport details, home address, and more. Cryptocurrency exchanges must be licensed in the countries where they work, and such detailed customer data is a requirement for regulators. But the trick is that none of the exchanges has perfect protection from hackers, and at any moment it can be cracked, and your personal and financial information will be in the hands of unwanted people.
In some exchangers, like ChangeNOW you are not required to register. All you need is to enter the amount of coins you want to exchange and the wallet address. The exchanger is not interested in your workplace and your real name — it is just a quick and easy option to buy or sell the cryptocurrency.
Another difference between the exchanger and the exchange is the speed of operations. On the exchange, you must first have a currency in the exchange account and then create a new ticket for the sale or purchase of the currency, and then wait until somebody replies or views the list of open tickets and reply to the finished proposals. Once the currency gets to your account for its further usage, you need to take another action — send the money to a cryptocurrency wallet or directly to your bank account. All this is accompanied by commissions. In the exchanger all you need is to specify the amount to be exchanged, then everything happens automatically and in a couple of steps. The commission is usually fixed.
In general, the distinguishing characteristics of the exchangers is characterized in this way: you buy and sell cryptocurrency directly from the service, which in turn determines the value of currencies, based on rates of exchanges. That is, you don’t have to deal with third parties. It is convenient and advantageous because you are protected from cases when big players on the exchange decide to “undermine” the cryptocurrency exchange, selling or buying cryptocurrencies in large batches, and artificially altering the rate.
Thus, changing cryptocurrencies through an exchange is advantageous only in case, if you are familiar with financial instruments and you do not need to exchange urgently — you are ready to wait for the best moment to earn on the rate. If you just need to change money, without delays, signups and dealing with large and complex website interface — an exchanger should be your choice. And keep in mind that whether you choose an exchange or exchanger stick to the reliable services that work with well-known partners, have reviews and are transparent enough.