The digital coin industry has not been around for long. For this reason, only a tiny percentage of the total population of the planet participates in this market. This means we are still at the outset of the cryptocurrency industry development. Here is Where Convert Ether to BTC?
New developments in this market turn everything upside down almost every day. What was DeFi like in early 2020 and what does the industry look like now? Many experts believe that a similar fate may await Polkadot and its ecosystem in the future. These are yet only assumptions, so don’t take this as financial advice.
This article will be about the best way to convert cryptocurrencies nowadays. We will find out what tools are proper for this task. Besides, we will talk about cryptocurrency exchanges and the next step in their development. So first things first.
What is a cryptocurrency exchange?
A cryptocurrency exchange is an online platform for swapping one type of digital money for another. Some exchanges give the opportunity to instantly swap coins for fiat money, that is, for real currency.
Today, there are hundreds of cryptocurrency exchanges in the world. They are regularly combined into ratings to help you form an opinion on the reliability of the exchange and its position in the world of crypto trading.
How to choose an exchange?
- Daily trading volume. The high turnover of the exchange is a sign of its popularity. The higher the volume of trade, the higher the confidence on the part of users.
- Deposit and withdrawal of funds. Find out in advance on what conditions, how quickly, and in what currency you can deposit and withdraw funds, as well as the payment systems the exchange works with.
- Cryptocurrency pairs. A wide range of pairs also means large opportunities for making a profit. However, beginner traders find it more important to be able to exchange the most popular and liquid cryptocurrencies, like in this BTC to ETH converter.
- Verification. Find out if you need to prove your identity to trade on a particular exchange or if you can work anonymously. Are there any restrictions on daily trade for unverified users?
What’s wrong with verification?
One needs to pass the KYC procedure to work with the vast majority of exchanges. This means that you need to send copies of your documents to the technical support of the exchange.
Know-your-customer, or KYC, is a legal requirement for financial companies to identify and establish the identity of a counterparty before carrying out financial transactions. Simply put, before accepting or transferring funds to you, the company must establish your identity.
- First, it completely deprives you of anonymity.
- Second, you run the risk that your personal data will end up in the hands of third parties.
Hackers have repeatedly attacked various exchanges throughout the history of the cryptocurrency industry. Perhaps the grandest theft happened with the Binance platform in May 2018. Then the attackers stole 7,000 BTC and the personal data of 60,000 users.
A little more than a year later, on August 7, 2019, information about the Binance exchange been hacked began to spread on the network. The data of thousands of clients appeared in the hands of thieves.
The head of the exchange, Changpeng Zhao, took the situation under control and asked users not to react to the panic created around this news, as an investigation was underway.
An update from Zhao appeared in 20 minutes, he referred to content dated January 2019, with the caption: “Yes, old news, different spin”.
This message mitigated the users’ panic, and the situation eased up a bit. In the end, an official statement from the exchange was published, informing that a hacker had threatened the exchange with “leaking” the KYC data of its customers, demanding 300 BTC. The platform’s management refused to follow the blackmailer’s conditions, and hackers began to spread data on the network.
The problem was in the very fact of stealing the personal data of customers from exchanges and other sites. Theft from Binance, whether it was fake or not, is not the first or only theft and definitely not the last one. Whatever security tools financial institutions use, there will always be a loophole, or a person working in the company, who will give customer data into the network or sell it on the darknet.
How to convert cryptocurrencies anonymously?
To avoid theft of personal data and payment information in the future, traders and other users of exchanges should consider alternative options. There are trading platforms with no KYC verification, with trading conditions that are no worse and sometimes even much better.
One of such platforms is the Godex.io decentralized exchange. A huge number of trading pairs are available there, which is enough for 99.9% of crypto enthusiasts. The platform interface is as simple and understandable as possible for a person with absolutely any level of knowledge in the crypto industry.
The important thing is that no registration is required to work with this platform. Godex does not store users’ personal data, thus, it simply cannot be compromised.