In this present day, it’s essentially easy to purchase BTC. WHY? Well, this is because we live in a world with quite a lot of popular Bitcoin exchanges. The only thing that might set the average buyer back is the absolute amount of selections available. The funny thing is that neither of the most popular exchanges is the first of its kind. The first-ever Bitcoin exchange, now out-of-date, was called Bitcoinmarket.com.
However, there are various ways to buy or trade Bitcoin and other cryptos, each with advantages and disadvantages. For example, most stock exchanges are centralized exchanges (CEX), P2P platforms, Bitcoin ATMs, and decentralized exchanges (DEX).
Therefore, in this article, we will look at the first two.
CRYPTO EXCHANGE (CEX)
These platforms are operated by companies and financial institutions, like Tradefada.com. They allow you to purchase Bitcoin and other crypto coins with varieties of traditional means payments such as credit and debit cards, bank transfers, or utilizing third-party providers. You can also trade Bitcoin in contrast to other assets. All you have to do is send your buy or sell order to the order book. An automated engine will implement the trade as soon as the market conditions align with your order. The whole kit and caboodle transpire behind the curtains, and you do not even know the person on the other side of the transaction. This exchange is the platform that does everything for you.
But nothing is perfect; everything with ups will always have a down. The same thing is applied to crypto exchanges as it comes with a few trade-offs. Some local regulations, lack of infrastructure, or other challenges have resulted in a lack of payment methods, a limited variety of assets, or a smaller range of available products in a particular region. Then there are over 1.7 billion unbanked people globally who have a limited right to financial systems. They only have cash; it could be a phone with access to Cashapp or PayPal.
When you are trading or investing crypto on a traditional exchange, your bank can see that you transact with a cryptocurrency exchange. Some traders even choose to trade crypto without sharing this information with their bank or payment provider.
PEER-TO-PEER (P2P) MARKETPLACES
Compared to crypto exchanges, Peer-to-peer (P2P) marketplaces are generally functioned by smaller bodies. With the appearance of the most critical global exchanges, a new model of P2P marketplaces appeared. P2P marketplaces happened to be among the first to quarter Bitcoin to fiat trading. This type of trading exchange is the complete opposite of crypto exchanges. Now, as a substitute for using an automated engine to complete your transactions, you will manually select your chosen offer and trade straight with a counterparty.
P2P usually comes with great self-determination to decide on different rates and payment methods and with lower fees. However, trading directly with a counterparty can better help you safeguard your privacy. In other words, there won't be an exchange name in your bank transaction history.
P2P markets often allow money transactions when necessary for you to meet your trading counterparty and physically complete the money transactions. In some regions, Bitcoin to cash P2P trading is one of the most common methods for extraordinary privacy and no fees.
Just like everything good has its wrong side and everything terrible has its good side, the wrong side of P2P marketplaces is the lack of excellent offers. It also reduced accessibility and increased security risk for certain transactions (i.e. cash transactions in person). Due to the peer-2-peer element, the execution of the trade is also time-consuming.
TRY TRADEFADA CRYPTO EXCHANGE
Both traditional exchanges and peer-to-peer marketplace have their own individual sets of benefits and shortcomings. Both have the ultimate goal, but both accomplish it in very different ways. For example, some people prefer the privacy and overall comfort of using a traditional Bitcoin exchange. At the same time, some other people choose the personalization of the trade that peer-to-peer Bitcoin marketplaces bring to the table.
Still undecided? What if we tell you that on the Tradefada crypto exchange platform, you can buy and sell more than 100 different cryptocurrencies that you can access with just one account?
Explore the cheapest way to buy and sell Bitcoin locally!
Trading crypto? Try our crypto exchange platform today!