The bull market caused lots of new arrivals to the crypto scene. However, the trend has changed, and now they find themselves in a bear market. The latter is very different from the former, so much so that the inexperienced users need to adjust. We are here to help by explaining how using an instant crypto exchanger can help you save your digital money.
What is Wrong with Crypto Exchanges?
Cryptocurrency exchanges are the most popular way to trade digital currencies, both with newcomers and seasoned traders. However, there are evident issues with these platforms that call for an alternative.
The main problem is that rates can differ significantly from exchange to exchange, especially in periods of unrest on the markets (like on the screenshots above). This is because technically each crypto exchange is a market of its own, where different user bases set prices through demand.
Arbitrage is one of the few things that keeps the difference between rates more or less consistent. By definition, it is an act of using price differences on different markets to one’s advantage. When you are buying BTC cheaper on Exchange A to sell it for more on Exchange B, that is arbitrage. Nevertheless, trading fees and withdrawal fees make it tougher to trade like this. Finding the best exchange rate across all exchanges can be a pain but instant crypto exchange platforms can help with that.
These platforms scour a pool of centralized and decentralized exchanges to find a rate which is the best at the moment. You only need a single account, or even none at all, to make use of several crypto exchanges at once, which is extremely convenient.
On top of it, such exchangers tend to have a simplistic UI in contrast to over-complicated layouts of cryptocurrency exchanges that are overloaded with charts, order books etc. Despite this simplicity, you can still make use of the best current rate and make money on arbitrage. So in short, with exchangers you get an easier to understand interface, better rates and more anonymity due to the lack of an account.
Speaking From Experience: What Issues Did Influencers Have With Crypto Exchanges?
We asked a couple of influencers, what problems they have run into when using a popular crypto exchange? Their experience might be interesting for you.
The first comment is courtesy of Donald Lee, a host of CoursehackClub on YouTube. He gladly provided a detailed in-depth reply with insightful analysis.
Donald Lee (CoursehackClub):