Digital currency exchanger
With cryptocurrency growing high above the roof, we still ask the question: Can we implement these things in today’s society? Well, if it has such a great value, how can we use it in everyday’s life? Can I buy a coffee with bitcoin? Can I buy a car with Ethereum? All of these “everyday’s” questions are flowing around us and we may seek only one answer: Yes we can. We can use these things in everydays life and we can buy thing with Bitcoin and Ethereum. You may wonder how? The answer is in Cryptocurrency exchange. It is also known as digital currency exchanges, but the definition is quite the same: businesses that allow customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money, or different digital currencies. They have two working ways: Either be the market markers with bid/ask spreads as transaction commissions or simply charge fees for their services as a matching platform.
DCEs may be brick-and-mortar businesses, exchanging traditional payment methods and digital currencies, or strictly online businesses, exchanging electronically transferred money and digital currencies. Most digital currency exchanges operate outside of Western countries, avoiding regulatory oversight and complicating prosecutions, but DCEs often handle Western fiat currencies, sometimes maintaining bank accounts in several countries to facilitate deposits in various national currencies. They may accept credit card payments, wire transfers, postal money orders, cryptocurrency or other forms of payment in exchange for digital currencies. They can send cryptocurrency to your personal cryptocurrency wallet. Many can convert digital currency balances into anonymous prepaid cards which can be used to withdraw funds from ATMs worldwide. Some digital currencies are backed by real-world commodities such as gold, meaning that they still have touches with the old-fashioned values.
Now the main problem for cryptocurrency exchangers are the regulation issues that they face. In 2004, three Australian-based digital currency exchange businesses voluntarily shut down following an investigation by the Australian Securities and Investments Commission (ASIC). This has sparked very negative comments all around the world, not just in Australia because the cryptocurrency exchangers were under a hit from the media as well as the courts in Australia. In the upcoming years, all the way from 2004 to 2013, lots of legal wars were fought between cryptocurrency exchangers and their prosecutors who allegedly sued them for being “money-launders”. Apparently, they didn’t like the way that the exchangers were making money and it has become clear to the media that there is something going out there!
Over-the-counter or off-the-exchange trading of bitcoins is a more flexible and convenient way of trading bitcoins comparing to traditional exchanges.
OTC trading has kept growing since 2014 in various financial markets as more institutions taking the trades off the exchange. Today, many corporations or institutions employ individual traders or bitcoin-OTC trading desks to perform this task at moderate expenses. Some representatives bitcoin-OTC trading desks could be Bitfinex.com, itBit, Coinfloor, Octagon Strategy Limited, LocalBitcoins, Bitstamp, BitX etc.
We hope that we have widened your knowledges about these exchangers. They are very useful in today’s society because of the practical work they are having. The most important thing to use from this is that you can exchange all of your digital currencies for real money, making your digital cash into virtual one!