Bitcoin to fiat exchange

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03.06.2021 13:52
Bitcoin to fiat exchange

    The daily turnover of EUR-BTC and BTC-EUR exchange pairs is over EUR 250 million. For the USD-BTC and BTC-USD currency pairs, the figure is USD 60 billion. Users exchange bitcoins for fiat currency with individuals in face-to-face meetings or on specialised p2p platforms, via exchangers and exchanges. Bitcoins can be bought and sold using crypto machines, specialised ATMs for cryptocurrency exchange transactions, but this service is not widespread in Europe due to the small number of devices. It is more popular in North America but is not available in relatively small communities. The method of exchanging bitcoins for USD/EUR depends on the security of the funds and the cost of the fees.

    Buying bitcoins via a private individual

    Exchanging cryptocurrencies from a private individual is the riskiest. Private individuals offer bitcoin to fiat exchange at a favourable rate, but there is a high probability of fraud.

    Whether in person or through a special p2p exchange service, there is no guarantee to the user that their transaction partner does not intend to steal someone else's money.

    Buy bitcoins via a cryptocurrency exchanger

    A convenient and secure way to exchange bitcoins for fiat is in cryptocurrency exchanges

    Before exchanging, a user enters personal information - phone number and email, some exchangers require a user to go through full identification procedure, first and last name or send passport photo.

    The user creates a request, specifies the amount of the cryptocurrency and the wallet address. The exchanger provides details to transfer the money. Confirming the payment, the exchanger sends the cryptocurrency. Upon completion of the transaction, the exchanger issues an electronic receipt. 

    The exchangers offer a large selection of cryptocurrencies, cooperate with payment systems, and conduct exchange transactions quickly. The exchange rate at the exchangers differs from the exchange rate by 2-3%. Before you start exchanging, you need to check whether the exchanger has a stock of the required cryptocurrency. 

    The Broex platform always has enough bitcoin for exchanges in any direction. Broex has a simple, intuitive interface. There is an option to buy bitcoin at a fixed rate without registering on the platform.

    Exchange bitcoins via a cryptocurrency exchange

    Cryptocurrency exchanges offer favourable exchange rates. A cryptocurrency exchange acts as an intermediary between the seller and the buyer. The exchange conditions are as secure as possible. Users undergo identity verification and the cryptocurrency is stored in a wallet on the exchange site.  Cryptocurrency exchanges regularly conduct security audits and form insurance funds in case of hacking.  

    The cryptocurrency market has exchanges that support cryptocurrency wallets and payment systems in different countries. Funds from these exchanges are easily withdrawn via VISA/Mastercard to a bank card. During each transfer - from a bank card to a payment system wallet, from a payment system wallet to an exchange wallet and back - a user pays a fee. The amount of commission varies, comparing the amount of fees of exchanges and payment systems, the user can choose the best option of exchange.

    Depositing commission is 3.99% for using a dollar VISA/Mastercard card and 2.99% for a euro card. Withdrawal to dollar and euro cards is not possible in the case of EXMO. Withdraw fiat currency to the bank card from Binance - free of charge. Withdraw bitcoin to user's cryptocurrency wallet at all exchanges costs the same - 0.0005 BTC. Bitcoins can be exchanged for fiat with Binance for 0.1%, Exmo for 0.2%.

    When conducting transactions with cryptocurrency, it should be remembered that licensed market participants require users to undergo a verification procedure. This not only indicates the presence of the marketplace in the legal field but also allows to protection customers from fraudsters and the arrival of coins from blacklists. The verification procedure on Binance requires that in addition to passport details and contact information, a photo of the passport pages and selfies of the user with an identity document in his hands. An unverified user can withdraw only 2 bitcoins per day from the exchange. A verified user can withdraw up to 100 bitcoins per day.

    Broex also follows industry best practices, including mandatory identity verification.

    Should I use a Telegram bot to exchange bitcoins?

    When considering bitcoin exchange options, one cannot ignore exchanging bitcoins using a Telegram bot. Some exchangers are expanding their client base in this way. An exchange with a Telegram bot is comparable in terms of risk to exchanging cryptocurrencies from a private person. Bots are often used by scammers masquerading as an exchanger.

    Conclusion

    When choosing a way to exchange bitcoins, the user must first define the criteria that meet his or her needs - a favourable exchange rate, security of the exchange, speed of transaction and anonymity.

    Advantages and disadvantages of cryptocurrency exchanges

    Cryptocurrency exchanges offer favourable bitcoin exchange rates and security, but fees for depositing and withdrawing funds can minimise the benefit of the exchange transaction. Users need to be verified to access the extended service packages and lucrative terms of the cryptocurrency exchange.

    Advantages and disadvantages of cryptocurrency exchangers

    Exchangers offer worse terms in terms of exchange rates compared to cryptocurrency exchanges. The advantage of exchangers is the high speed of transactions. The lack of a verification system is both an advantage and a disadvantage: it attracts those who need simplicity and confidentiality but reduces security.

    An alternative option for cryptocurrency newcomers

    The alternative choice between an exchanger and a cryptocurrency exchange can be Broex.

    Broex will primarily appeal to those who invest in cryptocurrency for the first time. The service provides an opportunity to buy and sell major cryptocurrencies without the risk of loss, easily and conveniently, withdraw money to a bank card, store funds directly on the platform or transfer them to your own cryptocurrency wallet. With a convenient interface, the user will get full information on the status of their investment portfolio and the market in general, so that they can keep up to date with the market situation and the status of their funds without any extra effort. 

    Whether it is more profitable to anonymously and quickly exchange small amounts of bitcoins through exchanges or to exchange a large amount through an exchange in one transaction, after verification and payment of a commission, depends on the user's decision and the cryptocurrency transaction strategy he or she adopts. For a beginner, it is better to choose a service that combines the advantages of an exchange and an exchanger, and that is definitely Broex.

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