Cryptocurrency has already become an inseparable part of our lives. Some specialists believe that the future of the financial world is closely connected to it. However, many people still have a very vague idea of what the cryptocurrency is and where they can buy or sell it.
The easiest way to exchange cryptocurrency is to do it on a safe crypto exchange platform. However, there are a lot of cryptocurrency exchanges offering their services. It causes another challenge. Sometimes, it is very difficult to choose the right cryptocurrency exchange service. While all platforms claim to provide the best service, they differ one from another significantly. You should choose your crypto exchange platform – LetsExchange or any other, based on your needs and requirements. Always do your research.
Instant or custodial cryptocurrency exchange?
The very first thing to decide is whether you need an instant or a custodial cryptocurrency exchange. Both types of exchanges allow you to swap your coins, however, they function differently.
An instant cryptocurrency exchange
An instant crypto exchange provides the exchange service only. When you provide the information needed for your transaction, an exchange aggregates prices and collects liquidity from many custodial exchanges. The prices are compared, and the best deal is chosen. Then, an order is created, and you get the exchanged coins to your wallet.
An instant crypto exchange is perfect for those who don’t want to waste time and opportunities by completing long registration and verification procedures. These service providers allow you to convert ZEC to BTC or any other coins either with the basic registration or without registration at all.
Usually, an instant exchange has an easy-to-use interface that allows swapping coins in a couple of clicks.
One of the main drawbacks is the absence of an integrated wallet. instant exchanges provide non-custodial exchange services. It means that your funds are not stored by an exchange, your coins are sent directly to your wallet. For using an instant exchange, you need to have a wallet and understand how it works.
Another drawback is a higher fee compared to custodial exchanges.
A custodial cryptocurrency exchange
A custodial cryptocurrency exchange functions in a different way. Usually, such exchanges offer their users wallets to store and trade all the coins supported by a specific platform. Normally, in such cases, we speak about custodial services: the exchange has access to your private keys and theoretically can manage your funds. However, having such an integrated wallet is easier if you are a beginner. Custodial wallets are very easy to use.
Custodial exchanges have their own liquidity pools. If the liquidity level is lower than needed, transactions might be processed slower than usual.
Choosing an exchange is not an easy task. When selecting a cryptocurrency exchange, check whether the website complies with the basic safety requirements, if the service provider is a registered company, whether your coins are supported, and all the other aspects that you might want to consider. But if you invest some time and make some effort, you can find a platform that complies with all your needs.