Cryptocurrencies continue to march across the planet, becoming a mainstream phenomenon and finding new areas of application increasingly fast. People buy Bitcoin, Ethereum, Monero, and other digital assets for many reasons.
Some use them to carry out payments, while others use them to hedge against the risks and disadvantages of the traditional financial system. Many also consider them as an investment tool.
However, all these types of use have one thing in common: whatever your further goals are, you first need to buy cryptocurrency. One can do it through a personal transaction with another individual or on the exchange. Moreover, you will need a cryptocurrency exchange to help you use your digital assets further.
What are the types of exchanges?
Although the operating principles of DEX and CEX are fundamentally different, the trading functionality is visually similar. A centralized exchange works much similar to a bank. You deposit cryptocurrency, and the exchange stores it and uses it for its purposes. It fulfills your requests for the withdrawal or exchange of assets if necessary. Users of a centralized exchange don’t have their own private keys. Thus, from the blockchain point of view, it appears that the owner of the funds is the exchange with assets distributed among users within the platform.
As for a decentralized exchange, it does not store funds. Typically, there is a protocol for matching orders, and funds are transferred between individual wallets via smart contracts. The basic mechanisms can be different. For example, AMM (automated market maker) can be used instead of orders.
Variety of DEX
Basically, decentralized XMR to BTC exchanges are classified according to two criteria:
- Place of performing transactions. The exchange can occur directly on the main blockchain, or on a third-party, with the subsequent transfer of the results to the main one. The second method is often used to speed up and facilitate the process if the underlying chain is heavily loaded.
- The way of performing transactions. Some sites support the order book system, similar to the one used on CEX. However, exchanges with AMM (automated market maker) are gaining popularity lately. Their essence is that users create liquidity pools. An instant exchange is carried out based on the rate determined by supply and demand within those pools.
Lack of anonymity
The vast majority of centralized cryptocurrency exchanges operate on KYC/AML principles. This means that one needs to verify identity for full-fledged work. The verification procedure may differ insignificantly at different sites, but its principles are the same everywhere. In order to gain access to the full functionality of the exchange, one needs to send copies of documents, as well as a photo, to the support service.
Under such a scenario, even so-called pseudo-confidentiality is out of the question. Besides, centralized sites often become victims of hacker attacks. Needless to say, the personal data of users is as much a desirable asset as cryptocurrencies nowadays. Some exchanges have already lost their user data, and there are more and more similar cases every year.
How to convert cryptocurrencies anonymously and safely?
If you are looking for an XMR to BTC exchange , the most convenient and simple way is to use the Godex.io decentralized exchange. This platform is ideal for both beginners and experienced traders. Its interface is clear for absolutely any average Internet user.
Perhaps the most important feature of Godex is its accent on user anonymity. The process of converting cryptocurrencies is as simple and straightforward as possible. Still, we will consider this procedure step by step so that you will definitely have no questions left.
A step-by-step guide on a cryptocurrency exchange
- The first thing for you to do is to visit the official website of the Godex.io platform so that you can start the exchange.
- You will find a cryptocurrency calculator right on the main page. Here you need to indicate the digital coins of your interest. In our case, these are XMR to BTC.
- Indicate the number of coins you want to exchange.
- After that, the Godex algorithm will monitor the market situation and give you the most profitable rate at the moment.
- Click “exchange”, and you will be redirected to the next step.
- Now you have to enter the address of the wallet for funds to be credited in the window that opens. It is very important not to make a mistake, otherwise, you risk losing funds.
- Once you checked the correctness of the data entered, click on the “Exchange” button again and pay for the application.
- That’s it, your application will be performed as soon as possible. As a rule, the swapping of cryptocurrencies takes no more than half an hour.
Conclusion
As you can see, exchanging digital coins is not a difficult task. We hope that this guide helped you learn how to convert cryptocurrencies profitably, quickly, and, most importantly, anonymously.
Also Read: What is Leverage Trading With Cryptocurrency?
