exchange cryptocurrencies

For a non-technical user, these are the three most commonly used methods for exchanging cryptocurrencies: over-the-counter, centralized, and decentralized exchanges. Consider their pros and cons.

1. Centralized exchanges

Since the popularity of cryptocurrencies has increased significantly in recent years, many centralized exchanges seem to be meeting the demand (atomic swap). They usually compete for the number of trading pairs. If you change cryptocurrencies, you can automatically exchange with the trading pair at a reduced price or even for free.

However, this diversity comes at a price. This forces platforms to tailor their offerings accordingly and does not make it easier for ordinary people to participate.

The disadvantages of this method are the following:

  • Complex interface. An unprepared user can easily get confused in the abundance of indicators, charts, orders and other elements.
  • Fees, fees and more fees. To make a simple transaction and exchange one cryptocurrency for another, you will have to pay at every step of your journey. From deposit to final withdrawal. Thus, you may never know how much will be in your wallet.
  • Complicated KYC procedure. For some exchanges, the verification process is quite complicated and it can take days, weeks, or even months for a new user to get their account verified.
  • Price fluctuations. Since the volatility of cryptocurrencies is quite high, the price of an asset can change even in a short time when making a transaction. 

2. Decentralized exchanges

DEXs were originally invented as an alternative to centralized exchanges and have managed to solve some of their problems.

Since they are “decentralized”, they do not depend on any central server and are available anywhere in the world.

However, decentralized exchanges also have serious disadvantages:

  • Low liquidity. The popularity of decentralized exchanges is low, which negatively affects their liquidity. If you want to exchange a really large amount, this will be a big problem.
  • Small selection of assets. As a rule, DEXs attract projects that do not have enough budget to list on large centralized exchanges. The variety of coins available for trading there is quite small and in most cases these are assets little known to the general public.

3. OTC drugs

OTC exchanges are perhaps the easiest way for a non-technical user to exchange cryptocurrencies. They typically integrate into centralized exchanges via APIs and offer their users a simple interface without all that confusing background noise.

However, this coin also has a downside:

  • Opacity. While OTC transactions are processed through centralized exchanges, the entire process remains completely opaque. Users may never know the final exchange rate (btc to eth) and may become victims of manipulation.
  • Worst course. Since OTC providers add their own fees for each transaction, the price will end up being much worse than centralized exchanges.

You need to look for intermediaries who have developed their own way of exchanging cryptocurrencies, which eliminates the problems associated with all of the above methods and simplifies the whole process. This is the answer to the question of how to change cryptocurrencies when there is no time to become a programmer.