How to save money on cryptocurrency exchange
There are no exact statistics, but at least 50% of all cryptocurrency exchange transactions go through exchangers.
A cryptocurrency exchanger is an online resource that exchanges cryptocurrencies for fiat money or other cryptocurrencies at a given rate. For example, Bitcoin to Litecoin, Ethereum to Tether USDT, etc.
When they say cryptocurrency exchanger, they mean a resource behind which there is a legal entity, and the exchange is made with it.
That is, it is not a P2P exchanger, where cryptocurrency exchange is made between two individuals, and the service itself acts only as a guarantor of the transaction.
What cryptocurrency exchangers are
There are a lot of classifications. For example, according to the types of cryptocurrencies and fiat currencies with which they work.
But we will consider this question below when we will consider the algorithm of exchanger selection. For now, we will classify these services according to the exchange technology options:
Operators of the exchanger manually examine applications, control the arrival of currency in the account and send the required currency to the client.
Of course, a human cannot compare to a computer in terms of the speed of various operations. That is why customers have to wait from several hours to several days.
Especially if the exchanger does not work around the clock. It all depends on the number of exchange transactions at a given time. Because of this, such services are not popular. You can say that they are an endangered species.
In this case, the client fills out a special payment form, which is generated automatically depending on the type of exchange. Checking the receipt of funds to the account of the exchanger is also automatic.
The operator only has to send money to the customer through the paymentform generated automatically. In time, such an exchange takes 10-15 minutes. But the service may not work around the clock, which is inconvenient for customers.
In this case, not only the payment form for the application is automatically generated, but the received funds are automatically converted into the desired currency and sent to the customer.
In this case, the exchange time depends only on the payment systems of the exchanged currencies. An example of a service with automatic currency exchange is Wellcoinex, a cryptocurrency exchanger that works around the clock.
As we see, there is no significant difference in the exchange rate between automatic and semi-automatic cryptocurrency exchangers, so the choice of one or another service should take into account other factors, which we will now talk about.
How to choose the right cryptocurrency exchanger
We see the algorithm for the right choice of cryptocurrency exchange service as follows.
Availability of the currency pair you are interested in
No exchanger supports the exchange of any cryptocurrency and fiat money. If we are talking about popular pairs, such as Bitcoin to USD or Ethereum to USD, they are supported by any exchanger.
But, if you need, for example, to get euros for their Bitcoins, then here you have to look. Although, there are plenty of such exchangers.
And if you need to get the Belarusian rubles or Uzbek sums, there is even less choice. The same situation with electronic money. Some exchangers do not work with QIWI, others with Yoomoney. And some accept only Advcash.
Volume of the transfer
An important factor if you are going to exchange a large sum of money. The exchanger will not be able to physically exchange more than its reserve. In addition, some such services set a maximum limit on the volume of exchange.
For example, QuickChange cryptocurrency exchanger offers to exchange no more than 1,500 USDT. There is also the opposite situation.
Some resources put a limit on the minimum exchange volume. For example, it is possible to exchange not less than 1,000 rubles.
The most popular is with bank cards. All cryptocurrency exchangers work with them. But here there are nuances. Many such services prefer bank cards of some specific banks.
Other cards they either do not accept at all or will increase the commission. But some exchangers work equally with the cards of any bank, for example, the already mentioned service Wellcoinex.
The second nuance is related to Ukrainian banks. Since the beginning of the military conflict between Ukraine and Russia, many Ukrainian banks have banned the purchase and sale of cryptocurrencies.
But this ban is not total. Therefore, there are situations when cryptocurrency exchange takes place with the Ukrainian bank Monobank, but not with Privatbank or Oshchadbank.
Of course, cryptocurrency exchangers do not work for free, but they take commissions for their services. There are two types of commissions – fixed and depending on the amount of exchange.
Moreover, it is not necessarily the case that the greater the amount exchanged, the lower the percentage of commission. It may be the other way around.
And some cheaters specify that they take 0%. Do not hurry to use their services. It just means that they have hidden their commission on the exchange rate.
This is how BTCPro24 works, for example. And, as a rule, you will get less in your hands, or rather on your account, than if you used an exchanger with the usual average commission.
Other cryptocurrency exchangers, on the contrary, say nothing about the commission and put up a very favorable exchange rate. Again, it is most likely the same cheese in a mousetrap, only in a different package. The exchange rate is profitable, but it is backed by a predatory percentage of commission.
Also, note that the fee may vary depending on the exchange pair. We already talked about this above when we talked about different banks.
The same may be when exchanging for electronic money. For QIWI one percent, and for Yoomoney another. Therefore, the best advice. In the application form, specify your amount for exchange and see how much you have to get for it.
In principle, this point can be put at the very beginning. The point of considering an exchanger, if its reliability does not inspire confidence. But still, put this point here algorithmically.
It is necessary to determine the service first and then look at its reliability. The easiest way to check the safety of a cryptocurrency exchanger is through BestChange service – it is an aggregator of exchange platforms.
This service checks each resource and if it is unreliable, it will not appear in the aggregator’s list. By the way, there you will also find available reviews on exchangers.
On the same resource, you will find ranked lists for each pair of exchange depending on the rate. But again, don’t forget about commissions, limits, and payment methods.
How to save money on cryptocurrency exchange
The basic algorithm for finding a profitable currency exchanger we have already described – you select several exchangers (you can use the service BestChange or similar), and then check the profitability of the exchange for each exchanger, substituting in the order form the amount of interest to you and see how much you get in the end.
But there are a few more ways to increase the total amount:
- Reduction of commission for registration. That is, if you register for cryptocurrency exchangers (enter your data), it will reduce the percentage of commission. This rule does not apply to all exchangers, and in some exchangers, you will not exchange without registration. By the way, anonymity may be one of the criteria for choosing an exchanger. If you exchange for fiat currency you won’t be able to keep your anonymity anyway – your bank card is tied to you. But if you are exchanging cryptocurrency for cryptocurrency, the presence of anonymity can be a decisive factor.
- Participation in the referral program. Many cryptocurrency exchangers offer bonuses for exchange volumes. The greater the total volume, the higher the bonus. Bonuses come in two varieties:
- reducing the percentage of commission;
- cashback for each exchange, for example, 0.025%; however, this limits the maximum amount of exchange for which you can get cashback.
Benefits of Wellcoinex cryptocurrency exchanger
Let’s go through the points of the above algorithm for selecting an exchanger:
- Large selection of currencies for exchange.
- Availability of a large reserve. Lack of minimum and a maximum limit (within the reserve).
- A profitable course.
- Security – in operation since 2018.
- The presence of bonuses for registration and active use of the exchanger-referral program.
It should also be added that Wellcoinex is:
- 24-hour operation (automatic exchange);
- online support.
The right choice of cryptocurrency exchanger is reliability and speed of exchange, minimal commissions, and 24/7 reliable support.