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Lesson 4. Exchangers and Stock exchanges: what’s the difference and how to choose

Hello,

Congratulations on moving on to a more “practical” lesson!
Today we will look at the exchange together as a novice user. I will show you how to open your exchange account 🔎, deposit funds on the balance (make a deposit) 📥, and purchase some kind of asset 🛒. In a comparative form, I will talk about working on the exchange and about the possibility of working through exchangers.

When did the discussion in concern with digital assets started? Let’s assume that they appeared about 20 years ago. Of course, at that time, few people had confidence in the digital (virtual) way of storing their savings and using money on the Internet. The first digital money (electronic cash) began to appear in the banking system and was used as the equivalent of money stored in bank safe boxes.

Soon, companies such as PayPal and WebMoney went further and decided to present to the user a radically new and unusual type of money – absolutely digital, in the full sense of the word. It was a kind of revolution: companies have earned world fame and people, after mass use, having already let go of their fears, ceased to be afraid of increasing assets in this way. Further, widely recognized digital values ​​such as digital gold and silver began to emerge.

Then, at the final stage of the digital funds formation, one of the most innovative and sensational ways to increase the capital was the acquisition of Bitcoin money (the so-called digital gold). Having bought it for $ 100 5 years ago and just holding it (without any additional interventions and taking actions), it could be nice to make money today!

It is worth noting, if we speak as simply as possible, that the method of buying for trade purposes can be considered trading, and buying for holding (keeping the asset in the wallet) can be considered an investment.

Next, I suggest to start your acquaintance with the exchange from the simple instruction “how?” and, most importantly, “where?” to purchase an asset. I will help you understand the difference between a simple exchange service and a full-fledged exchange.

The main difference between buying an asset on an exchange/platform and buying an asset through an exchanger is the mandatory registration process. In fact, a standard stock exchange registration takes less than 3 minutes. By joining the exchange and creating a personal account, you significantly save on the cost of the asset, since exchange services have asset prices and commissions for transactions, as a rule, significantly higher. Exchanges are guided by a single rate, which is updated every second. Also, the higher cost of “exchangers” is because they acquire assets on exchanges, paying a commission to the exchange, and resell the asset to you, taking into account their own commission, which already includes the exchange one.

I will use the Binaryx platform as an example of an exchange. Let’s start by filling in personal data and installing an additional code to protect your account – the process is very quick and easy.

One of your first practical steps was the registration process on our platform; let me remind you that it was quite simple.

All that was needed for registration:

  • specify your e-mail address and a password that will be used later when entering;
  • enter your full name and country of residence;
  • confirm the “User Agreement”.

After completing the registration stage on the Binaryx platform, you have access to operations, namely to the purchase and sale of assets. You can also edit your personal information and configure additional security in the system.

In order to go to your personal account, use the link. To edit your data, click on “My account” at the upper right.

There is a separate “Exchange” menu for making transactions connected with buying or selling.

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Let me remind you that you need to confirm your e-mail if you have not done so yet.

The so-called “terminal” is also available in the exchange. In the classical sense, the terminal is used for trading.

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We examined its modules in the previous lesson. And we will consider them in more detail in the future when making the first transactions with assets. Now let’s dive into the differences between exchanges and exchangers.

 In addition to the standard functions of the Binaryx exchange, unlike any other exchange services, it makes possible to earn money by storing money on the exchange / in your wallet using “Staking” (we talk about this in more detail in the course “Cryptocurrencies” in the 10th lesson). It is also possible to work with a margin account, which allows you to operate with much larger amount of funds than those that you have on your balance sheet. All these “chips” are absent in simple exchangers.

If you want to know how Staking works and how to effortlessly get % profit while keeping money on your balance – see our course on cryptocurrencies or contact the community managers and they will be happy to advise you.

Speaking about the interface and work with the account, I will say that the exchange has a “Wallet” section and each user has access to the option of replenishing an exchange account. To start performing trading operations, in particular, buying assets, you need to replenish your account with cryptocurrency or purchase it on the exchange itself. Choose a suitable payment method and start (we will analyse it in more detail in the next lesson).

The next step in working with crypto assets is investing or trading.

Learn how to trade in our academy using the Binaryx terminal as an example and continue to hone your skills for profit making!

Now let’s learn the key advantages of performing operations on exchanges, compared to working with exchangers:

  • comprehensive conditions for ensuring the security of transactions and protecting digital private wallets (carried out by the exchange);
  • the ability to operate with many types of assets, as well as the creation of pending trade orders to buy an asset at the desired value;
  • the most actual rate;
  • no restrictions for the amount of purchase and sale.

The disadvantages include only the need for mandatory registration and additional verification when using card accounts to buy cryptocurrency, which takes a little time.

Can’t wait to take a foray in business? – Lesson number 5, in which we will analyse the purchase of assets. Move forward!