New cryptocurrency adopters face a major challenge around getting their fiat exchanged for crypto after making decisions on which cryptocurrency to buy. The first big question is ‘where do I buy my crypto of choice, quickly and with a low fee?’ This is a major question in the cryptocurrency space today. One can say it is relative to the location or nationality, because of the difference in fiat exchange rates across the world. But the question arises: isn’t crypto established to nullify all location barriers? While this might be true in a sense, entry into cryptocurrency still poses a great challenge even in 2019.
What do you expect?
The expectations of the reader for this kind of article may be a list of popular cryptocurrency exchanges with their pros and cons. We believe this has been covered by a lot of articles over the past years. Readers can check a comprehensive list made by cryptimi. The article made a review and rating on each exchange selected. But one cannot rule out the fact that most exchanges charge exorbitant fees for entry into cryptocurrency. Popular platforms charge as high as 5% of the amount to be exchanged. The truth still remains that huge entry fees still prevent the adoption of cryptocurrency.
Coinbase, Coinbase Pro, and Kraken remain some of the biggest centralized fiat-crypto exchange today with fairly low fees. These exchanges allow traders to transact with their IBAN. They allow customers to trade or fund their wallets with their credit or debit cards. Many fiat-to-crypto exchanges still operate based on jurisdiction for problems faced with banks. Coinbase provides services to people in over 100 countries. Banks are at constant war with crypto exchanges. Fiat-crypto exchanges move a large amount of money in and out of banks which goes against anti-money-laundry policies of banks. To banks, cryptocurrency is not a business which exchanges can use to justify the movement of large amounts. Furthermore, cryptocurrency is not a physical business which is taxable. And, it becomes even harder to gain licenses and understanding of how banking in each country operate since banking and business laws differ from country to country.
A possibly better solution?
CEZEX launched an exchange for direct trading in the digital asset. It claims to be licensed to trade cryptocurrency, derivative, and security tokens. It also currently charges zero fees for deposits and withdrawals in USD. It cannot be ascertained if this will continue or end up as a limited promo. But CEZEX is not available to the United States and China residents.
Introducing P2P fiat-Crypto Solution
Presently, the best of all options is to find a peer-to-peer (P2P) fiat-to-crypto exchange in each country. P2P platforms can be encouraged in each country for their immense advantages as they are relatively new and not very popular. P2P platforms connect members who hold fiat and wish to get cryptos with members who hold cryptos and wish to have fiat. Cryptos are escrowed on the platform and locked as soon as members are paired. The crypto buyer sends fiat to the seller’s bank account. The seller notifies the platform immediately when he receives funds, the platform unlocks the crypto and sends it to the buyer. Arbitrage exists on platforms like this to solve inherent challenges. Fees charged on P2P platforms are very low compared to other fiat-to-crypto exchanges because fiat transactions are done outside the platform. P2P platforms also have KYC procedures to mitigate against possible scams from any member.
Remitano, a product of Babylon Solutions Limited – incorporated in Seychelles, is one of such exchanges. It is currently operating in about 30 countries. Users over time have had great experiences using the platform. Bestbitcoinexchange.net made a comprehensive list of popular P2P fiat-crypto exchanges.
Helping to achieve the adoption of cryptocurrency, worldwide
At Wunbit, our vision is not only to present an innovative crypto gaming arcade platform. We seek every day to help increase the adoption of cryptocurrency by providing adequate information for beginners and enthusiasts all over the world.