A good exchange will not only facilitate trades, but also inform and assist clients with resources on how to store and use their cryptocurrency. There are many types of crypto exchanges all providing different levels of customer service and support.
If you’re new to cryptocurrency there may be a learning curve, there are quite a few new terms and ideas – but we can help you catch up.
Why Use an Exchange?
In Canada, facilitating a buy or sell order on a cryptocurrency exchange means having access, at any given point in time, to (a) enough Canadian dollars pay out all customers looking to sell their Bitcoin, Ethereum, stablecoins, etc. and (b) a variety of cryptcurrencies in order to give clients options the opportunity to obtain a variety of different coins, rather than just the five or ten most popular ones.
Facilitating a buy or sell order on a trade involves having access to funds in various fiat and cryptocurrencies, knowledge of the market and the systems behind virtual currencies.
In a lot of ways, trading cryptocurrency is like trading stock, an exchange can work like your broker to help you through the process. It’s possible to trade with anyone on your own, but an exchange will have access to hundreds, if not thousands of different virtual and fiat currencies with up-to-date market information.
Whether it’s buying cryptocurrency for the first time, trading a cryptocurrency for another or cashing out an investment, the exchange can provide information and clarification on how the transaction is achieved. A good cryptocurrency exchange will have clear, accessible information on how to manage your trade.
Many online exchanges may require existing knowledge of cryptocurrency and how to do a transaction. If that’s above your comfort level or if it’s your first time trading cryptocurrency; you may want to visit a local, brick and mortar exchange to get the help of knowledgeable people who will make sure you’re getting the best, safest service possible.
What can you Expect from a Crypto Exchange?
Some exchanges have a physical location where you can see an agent in person, but that doesn’t mean you have to be there. At Vancouver Cryptocurrency Exchange, trades can be facilitated over phone, video, e-mail, text message, or any number of online messaging services. Throughout the world, the vast majority of crypto transactions are done through online platforms.
Some platforms can trade directly with your existing crypto wallet, others may require you to move funds onto their platform in order to trade. Some investors choose to buy a large volume of more notorious cryptocurrencies, like Bitcoin or Ethereum, to diversify into other tokens. No matter how you’re trading, you will be sending one form of currency and receiving another.
The service provided by an exchange will include clear information on the price at which you’ll be selling, how much of your desired currency you’ll receive and the fees are involved. An exchange will almost always take a small percentage and there are fees inherent in any blockchain transaction.
For instance, here is the fee schedule for Vancouver Cryptocurrency Exchange:
|Transaction Value||Bank Transfer||Cash|
|$500 – $2,499||4.5%||5%|
|$2,500 – $9,999||4%||4.5%|
|$10,000 – $24,999||3.5%||4%|
|$25,000 – $49,999||3.25%|
|$50,000 – $74,999||3%|
|$75,000 – $99,999||2.75%|
Exchange Identification Requirements
Depending on local regulations and the type of trade being done, the exchange may request personal information from a client. Even if it’s an online platform, you might have to submit pictures, identification and other supporting documents to make sure the exchange knows who they’re doing business with. Agents operating on behalf of a business are required to provide incorporation certificates or other documents to support their legitimacy.
If you’re not sure what to bring to your first trade – Just ask and we’ll be happy to help. For more information on ID requirements for exchanges operating in British Columbia you can follow this link.
Once you’ve established a relationship with your exchange of choice, a trade can be as simple as selecting which currencies you’re trading, how much and clicking “send.”
What Makes an Exchange Safe?
Much like a bank, a crypto exchange has a legal responsibility to obtain information about their customers.
Staying up to date with regulations allows an exchange to manage business in a way that’s safe for both their agents and customers. Good business practices help cryptocurrency exchanges maintain good relationships with banks and other peripheral services needed to streamline trades for their customers.
In Canada, Cryptocurrency exchanges are required to have compliance officers oversee and review trades to ensure procedures are secure and transparent. Additionally, an exchange will be regularly audited and rated on their adherence to safe and proper procedures.
Cryptocurrency has come a long way from a fringe, relatively unknown technology to the point where anyone with any skill level can learn to safely manage their own funds.
Vancouver Cryptocurrency Exchange maintains a high standard for customer safety and satisfaction. We’re committed to providing current information and education on the world of cryptocurrency. f you have any questions about how to obtain, trade or store cryptocurrency, don’t hesitate to contact us!