In this technological era, digitalization is rapidly increasing, and people want things that will be easy for them. With rapid improvements in technology, new versions come with many features, and exchanges are the same. Blockchain is a very secure platform for bitcoin transactions, but it is a public ledger which means everyone can see the bitcoin transactions of sender and receiver. Hence, exchanges provide extra features by keeping your transactions private. So in this article, we will discuss why people use bitcoin exchanges rather than using Blockchain, so without wasting time, let’s understand the reason.
What is an Exchange?
An exchange is a private entity or third party that provides extra features to bitcoin users and charges some percentage of commission on each transaction. The commission may be different according to the type of exchange and the number of facilities. In simple words, exchanges work as the middle man between bitcoin buyers and sellers and provide them extra features with privacy that Blockchain is not providing.
Reasons for choosing bitcoin exchanges:-
GUI stands for Graphical User Interface, which means you are trading and investing through the understandable interface. Many exchanges provide a user-friendly interface for simple and easy bitcoin transactions, and you also check everything you want. How would you feel if you would do bitcoin transactions in code? It will be more complicated for an ordinary person who does not know the language. So graphical user interface makes the bitcoin transactions more understandable, and a student can easily understand it.
One-Click Buying and Selling
The second main reason for choosing bitcoin exchanges is buying and selling bitcoin in just one or two clicks. It is not complicated in exchanges. Just click on bitcoin, enter the amount of bitcoin you want to buy, and click on the buy button if you desire to buy. In selling bitcoin, Select the selling option, enter the number of bitcoins you want to sell, and then click on the sell button, and your bitcoin will immediately sell. Exchanges are fast and very easy to use. Even a student can also buy and sell bitcoins through an exchange. Also, check this thecryptogenius.io.
The most prominent feature of bitcoin exchanges is that it provides privacy and security to the buyer and seller. The limitation of Blockchain is everyone can see your bitcoin transactions because when you buy or sell, it will list on Blockchain publically. Anyone who checks the amount of spending can check your account details, which means the public key can prevent the receiver’s account, and many people do not want to show their bitcoin spending publically, so they choose an exchange. Exchanges provide privacy, which means anyone can not check your transactions, which means you will be anonymous. Anyone can check the orders, i.e., dealings with the amount but not review the sender and receiver. Exchanges also provide security at a certain level. You can lock your wallet with a security PIN (maybe of four or six digits) and two-step authentication, i.e., you have to validate your ownership through SMS or Google assistant.
Instant Deposit and withdrawal
Another feature of bitcoin is instant deposit money to your bitcoin exchange wallet and instant withdrawal of cash. Exchanges charge some commission on every transaction, and it depends upon the exchange you have chosen. Before choosing an exchange, you must adequately research and read about its features and terms and conditions. Always use your country’s exchanges, which means exchanges that started in your country. If you use another exchange outside of your country, it will not provide instant Deposit or withdrawal. For example, suppose you are from India. In that case, you need to invest money in rupees. So Indian exchanges will help you deposit money in INR with various debit and credit cards, net banking, UPI id or QR code, NEFT, Google Pay, Phone Pay, Paytm, and other payment methods.
Blockchain is open source, meaning anyone can modify the code, and if the new code is accepted by all the nodes working behind bitcoin, it will become the latest version, so there is no proper customer support. Since Bitcoin exchanges are private entities or third parties, they provide 24/7 customer support. There may be many contact options like Email, Direct chat, and Phone call (you can choose the language you can comfortably talk to). Exchanges charge commission on each transaction, so they provide many features to their customers.