Many cryptos like Bitcoin originated from the idea of decentralization, or giving the ownership of currency completely to the people and moving away from a central bank as the monetary authority. However, as crypto has grown in popularity over the years, centralized exchanges began growing as a popular choice to buy and sell cryptocurrencies. These exchanges became increasingly more centralized as more regulation was put in place, and as a result have higher levels of control of their customers’ crypto.
From a customer perspective, exchanges can be difficult to use and funds can be endangered if the company’s finances aren’t secure, as we’ve seen in the past few months. Let’s go over how Centralized and Decentralized Exchanges work, and how RockItCoin does things differently to make the customer’s crypto purchasing experience as seamless and secure as possible.
Centralized Exchanges (CEXs)
Centralized exchanges allow users to convert fiat currency (usually from a bank account) to cryptocurrency. However, they are generally custodial, which means the exchange holds the private keys to the user’s exchange wallet, until the customer moves it off into a wallet they own and control. As the crypto winter continues, the industry has seen multiple large centralized crypto exchanges close or file for bankruptcy, cutting off customer’s access to their funds. Additionally, exchanges usually have waiting periods that restrict you from immediately moving crypto off of the exchange into another wallet address.
Decentralized Exchanges (DEXs)
Decentralized exchanges exist on a blockchain network (like Ethereum) and allow users to trade cryptocurrencies and tokens in a peer-to-peer exchange. This can be problematic for new users, since you need cryptocurrency already to trade for others. DEXs are non-custodial, which means that the user does own the cryptocurrency that they swap for. However, with the combination of possible security issues and low levels of user-friendliness, it may not be the easiest choice.
How is RockItCoin Different?
RockItCoin provides multiple channels for our customers to purchase cryptocurrency, whether it be through our Bitcoin ATMs, our website, or our app. We also believe in the importance of non-custodial wallets and getting our customers their crypto as quickly as possible. With our network of over 1,700 Bitcoin ATMs, we provide a quick and convenient way to purchase crypto. By providing our customers with their own keys to their wallets (with a paper wallet or our app), we can ensure they truly own the crypto they purchase. And with a typical transaction time of under 10 minutes, it’s also one of the fastest ways to get crypto into your wallet. Find a RockItCoin ATM near you on our locations page!