Let’s talk exchange rates and trading in cryptosystems. There is a lot of confusion in the world of cryptocurrencies, be they coins, altcoins or tokens of various pedigrees. This confusion is born out from three bases:
- Exchange Rate
- Exchange Fees
Just so you fully comprehend the quagmire you are entering, understand that since blockchain is a decentralized system, this means there is no regulatory body. Where there is no regulatory body, there is no standardization, no cross-linkage between assets.
What does that mean?
It means that every exchange can trade in the same currencies with different exchange rates and fees. Just so you understand the vast variance (delta) in exchange rates between different platforms, take a look at the exchange rate for BTC (Bitcoin) to USD on the 26th of September, 2018 at 4:10 pm (Beijing Time).
The exchange rate for BTC on Simplex for 100 USD is 0.01516981 BTC
The exchange rate for BTC on Indacoin for 100 USD is 0.012807
Delta effect: the delta between the two exchange rates is .00236281 which is a 16% difference in favor of Simplex.
BestRate.org is Great
How did I know the above equation? Simple, I was in Bestrate.org, and they showed me on one screen the difference in the rates. Now, add to this the fee you pay for the miner only, since Bestrate don’t charge you a fee, and in the case of BTC its 0.0005BTC, and you end up receiving BTC from Simplex at a rate of USD 100 to 0.01566981
By using Bestrate I was able to find a 16% spread on BTC between two exchanges, this enables me to buy from one exchange at a much better rate, and sell and an equal amount of my asset holdings on the other exchange, receiving an immediate return on my initial order. Of course, nothing is that simple in real life, especially with buy and sell on cryptos, but essentially that’s the utopia we seek.
Bestrate Bottom Line
Best rate is a very simple platform that doesn’t mince words; they offer exactly what you get. A platform where you decide to exchange any currency you old with another currency being traded online. If there is a pairing, which on Bestrate you most probably will find it, then you get to either choose between many exchange rates or if you pick an esoteric pairing, only one.
Bestrate will lookup the two currencies you want an exchange, and show you the current rates found on multiple exchanges (service providers).
Once you have decided with the service provider you want to use, you send the service provider the asset you want to exchange, directly from your wallet or credit card, to the exchange’s wallet. Bitrate that offers their intermediary security and assures you get your return, the exchanged currency in your wallet. All you need to do is check your wallet for the asset you bought.
Since the site handles hundreds of coins, the list of miner fees is extensive; I only add a few here as a sample:
Bitcoin Miner Fee: 0.0005BTC
Ethereum Miner Fee: 0.006ETH
Bitcoin Cash Miner Fee: 0.001BCH
Litecoin Miner Fee: 0.01LTC
Monero Miner Fee: 0.04XMR
If you are seeking a simple, fast and efficient way to exchange currencies, as well as enjoy the delta in exchanging popular duo’s than this is the service for you. If you just want to sit back and enjoy the show, watching how exchange rates are so extreme between exchanges, then this is the site for you too.
The bottom line is that Bestrate as a perfect site, one that is sorely needed, and one that sheds some light on the preposterous difference that comes from decentralized platforms that think they can replace regulated currencies. Essentially, all they can do is add some spice into mundane life, and perhaps give more dreams to hopeful traders. Just remember, if you didn’t get rich trading in Forex, or in binary options, you most probably wouldn’t get rich trading in cryptos, since the same concepts of trade apply for all such environments. All that Bestrate can do is shed some light and give you better access to information and trading.