LATAEST ARTICLES
This is the 4th article within Crypto guide for beginners. Read other ones:
- What is cryptocurrency and how does it work?,
- What is blockchain technology and how does it work?
- What is crypto exchange and how does it work?
As we have already discussed, a crypto exchange is the place where crypto users get access to trading, selling, and buying crypto. Of course, this is not the only way to get crypto, there are also peer-to-peer (P2P) platforms, investment apps, and even crypto wallets. Let’s explore how crypto exchanges work and how crypto holders can trade there.
How do crypto exchanges work?
There are several types of crypto exchanges: central, decentralized, and hybrid. The most common type is centralized crypto exchanges though the growing rate of decentralized exchanges nowadays is high.
When you go to the crypto exchange, you set up an account. Having an account with the exchange platform lets you buy Bitcoin, Ether, Polkadot, Litecoin, etc. There are some exchanges that let you buy crypto with fiat, for example US dollar, or euro. Usually, such exchanges allow users to withdraw crypto as well. Other exchanges are not connected to the financial world of web2 and are not connected to banks or other financial institutions. It means that on their platforms you can only trade crypto for crypto.
Depending on the scale of the platform, the range of cryptocurrencies to trade differs. The bigger the exchange is, the more trading pairs it contains. Anyway, before setting up an account with the crypto exchange platform, check the availability of trading pairs as well as the options to move your crypto off the platform. Also, there are platforms that allow the withdrawal of crypto funds, but the platform fee for such an action can be very high. Another amazing feature of crypto exchanges is their availability. Unlike traditional exchanges, crypto exchanges are operating 24/7.
How can one trade on a crypto exchange?
Step 1. Set up an account
It’s vital to set up an account to be able to trade at the crypto exchange. Depending on the type of exchange the verification checks might differ. Anyway, all centralized exchanges require KYC verification, which could be confirmation of identity through ID checks, utility bills with the home address, driving license, or passport. MInd that from region to region KYC regulations differ.
Step 2. Fund your account
There are several ways to fund a crypto exchange account. You can do it either with fiat money or crypto when you send crypto from your wallet to a crypto exchange wallet. The majority of crypto exchange platforms require a minimum deposit.
Step 3. Select a trading pair
Cryptocurrency exchanges offer the most common trading pairs. If none of the pairs matches your expectations, you can navigate the list of crypto assets and make a pair you want.
Step 4. Come up with a trading strategy
If you are a newcomer to the crypto field, you can check a guide or two, listen to some bloggers, or follow the strategy offered by the exchange itself.
Step 5. Start trading
As soon as the crypto exchange account is funded and you are ready to employ the chosen trading strategy, cryptocurrency exchange transactions can be initiated. These can be done either through the desktop app on the computer or in your mobile phone app. The selling and buying transactions are put in the order book of the exchange. To proceed you have to pay crypto trading fees which differ from platform to platform. The fee may vary from 0.5% of the sum to 5% and even higher. It’s also important to remember that crypto exchanges do not set the prices for crypto, they are set by the market. The majority of crypto exchanges show up-to-the-minutes pricing.
Summing up
rading on the crypto exchange is not as easy as trading stocks and bonds in a traditional way. Though sometimes there is minimal identity check required, crypto exchanges are still unregulated. Moreover, centralized cryptocurrency exchanges are vulnerable to fraud, hacks, and theft. Also, if something happens to the exchange platform for example it goes down, users don’t get access to their crypto wallets.
To be protected and trade safely you can either have an account with a decentralized currency exchange or use a crypto wallet with the trading features. One such wallet is the Spatium Feeless MPC wallet. It’s a multi-currency wallet enabling feeless transactions.
Stay protected in web3 with Spatium Feeless Wallet. It’s easy to operate and securely to use. Spatium Feeless Wallet is free to download. It’s available on Android and iOS devices. Visit our website to learn more about the wallet. Get it on your phone, test it, and enjoy your financial freedom!
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This is the third article within Crypto guide for beginners. Read the first article, the second article
As you know already cryptocurrencies, including Bitcoin, Ethereum, Solana, and others have not been fully given the official status of money or official means of payment yet, that’s why they are not offered for sale at traditional exchanges. However, there are exceptions, such as Bitcoin which is officially recognized as a commodity in the USA by the Commodity Exchange Act (CEA). Many other cryptocurrencies are still in the gray financial zone, which is why they cannot be traded openly at traditional exchanges.
If a traditional exchange is not an option, then you can go to the crypto exchange.
What is a crypto exchange?
The crypto exchange is a platform where you can sell or buy different types of cryptocurrencies. Crypto exchanges are recognized to be extremely complicated systems to develop as there are multiple parameters and safety regulations to be taken into consideration. If we compare a cryptocurrency exchange and a traditional trading stock, cryptocurrency is a more complicated platform due to its unregulated nature. There are three main types of exchanges:
1. Centralized crypto exchanges
This is the most common type of exchange. This type of crypto exchange conducts all the operations with crypto with the help of a third party, which means that users don’t interact with each other on a peer-to-peer basis, they interact with the platform. On the one hand, custodial wallets that centralized crypto exchanges apply for each trader are very convenient to use, because they confirm transactions on users’ behalf and take care of wallets’ private keys. On the other hand, centralized exchanges could be hacked, which happens quite frequently. In case of a crypto exchange hack, all funds stored in the hosted wallets are lost and users will never get them back. Also, centralized exchanges are subjected to KYC and AML regulations, so it’s impossible for users to stay anonymous there.
2. Decentralized crypto exchanges
Decentralized crypto exchanges unlike centralized crypto exchanges are built with crypto and web3 ideology in mind. Decentralized crypto exchange doesn’t act as an intermediary between users who want to exchange crypto currencies, it allows them to trade directly. There are several good points about decentralized crypto exchanges.
Decentralized crypto exchanges are:
- less regulated;
- more secure, because there is no single point of failure (as it is in centralized platform management);
- lower fees, because there are no platform and service fees involved;
- faster transaction speed.
3. Hybrid crypto exchanges
Hybrid crypto exchanges are not very common though they represent a combination of centralized and decentralized crypto exchanges. Hybrid exchanges provide a guaranteed liquidity pool similar to the ones provided by centralized crypto exchanges, but at the same time, hybrid platforms are secure and decentralized.
Takeaway
While choosing the crypto exchange you should be aware that each type: centralized, decentralized, and hybrid has their pluses and minuses. Moreover, crypto exchanges are not the only way to exchange, buy crypto, or change it to fiat. Some modern crypto wallets offer all the required services. One of such wallets is Spatium.
It’s a multi-chain wallet, enabling users to send crypto to different blockchains with a 30% less fee. Try the Spatium Feeless MPC wallet for free and enjoy paying less for your transactions. Check out more and stay connected to know our news first!
Spatium Feeless Wallet is a multi-currency crypto wallet. It makes crypto transactions affordable and cheap compared to many other crypto wallets. Spatium offers a revolutionary Feeless feature when transactions are paid in the crypto you send instead of the native crypto of the blockchain. Batched feeless transactions enable you to save up to 30%.
Stay protected in web3 with Spatium Feeless Wallet. It’s easy to operate and securely to use. Spatium Feeless Wallet is free to download. It’s available on Android and iOS devices. Visit our website to learn more about the wallet. Get it on your phone, test it, and enjoy your financial freedom!
Keep a close eye on Spatium Feeless Wallet.
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This is the first article within Crypto guide for beginners. Read the first article.
The two terms: blockchain and cryptocurrency are often used as synonyms, though they are not. The phrase ‘Bitcoin Blockchain’ means that Bitcoin blockchain is the platform enabling the launch of Bitcoin cryptocurrency. However, blockchain technology is very complicated, embracing not only the function of the underlying platform for cryptocurrencies but also has a wide range of other applications.
Blockchain network characteristics
1. Transparent
Originally, blockchain networks are public ledgers, meaning that all transactions are visible to anyone and accessible to anyone. Of course, nowadays there are private ledgers, but the amount of such networks in the global web3 ecosystem is very insignificant.
2. Permanent
One of the properties of the Bitcoin blockchain is that starting from its creation in 2009 until nowadays it records and stores all transactions with digital assets. Digital assets are not only cryptocurrencies, these could be tokens that can hold data about real objects and services: property, goods, patents, smart contracts, etc.
3. Immutable
Blockchain is an append-only ledger. Data about transactions enters it, and stays there permanently, with no option to be changed or corrected. Strong cryptographic protection prevents bad actors in web3 from meddling with blockchain transaction history.
Why is a blockchain called so?
The meaning of blockchain is quite clear if we cut the word into two parts: blocks that are chained. Taking the example of the Bitcoin blockchain, it’s true that all transactions to be put into the blockchain are organized in blocks. Each block records recent transactions before they get validated by the network. Once the data about the transactions are validated, the block is closed and permanently joins the blockchain. The Bitcoin blockchain adds six blocks each hour, which means that if someone wants to send a transaction to the Bitcoin blockchain, they will wait roughly 10 minutes for their transaction confirmation.
Is blockchain technology secure?
Blockchains are decentralized which means that they simultaneously run on a network of computers (nodes) scattered around the globe. There is no central node to control the transaction verification and block confirmation, nodes communicate with each other enabling peer-to-peer confirmation scenarios (consensus). The fact that blockchain is decentralized makes it safer compared to legacy record-keeping systems because blockchain doesn’t have a single point of failure. The fact that it is self-governing makes any duplication or fraud very difficult to achieve.
Coming to life as an alternative financial system, the Bitcoin blockchain brought to life thousands of other blockchains with over 20,000 cryptocurrencies. Blockchain technology has outgrown the financial sphere and is actively exploring other industries as well.
Spatium Feeless Wallet is a multi-currency crypto wallet. It makes crypto transactions affordable and cheap compared to many other crypto wallets. Spatium offers a revolutionary Feeless feature when transactions are paid in the crypto you send instead of the native crypto of the blockchain. Batched feeless transactions enable you to save up to 30%.
Stay protected in web3 with Spatium Feeless Wallet. It’s easy to operate and securely to use. Spatium Feeless Wallet is free to download. It’s available on Android and iOS devices. Visit our website to learn more about the wallet. Get it on your phone, test it, and enjoy your financial freedom!
Keep a close eye on Spatium Feeless Wallet.
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This is the first article within Crypto guide for beginners.
Cryptocurrency is an important part of the web3 system. You may sometimes meet the shortened form of the word - crypto. It means that this digital currency is based on cryptography, advanced mathematical calculations, and equations. There are nowadays more than 20,000 different types of cryptocurrencies but all of them have one feature in common, they are decentralized. It means they are not governed by any centralized issuing authority (banks, governments, etc.).
Cryptocurrency in a nutshell
If we take the US financial system as an example, then you will see that the body which is responsible for issuing dollars is the Federal Reserve. After that dollars go to banks and other financial institutions and are distributed among people. Any banking card from a bank can be canceled by the centralized authority. At the same time if a banking card is lost or stolen, the same centralized authority can block and then reissue it, thus protecting bank holder’s funds.
Nothing like this is happening in web3. Cryptocurrency is created, exchanged, bought, and sold through peer-to-peer disturbed networks.
Crypto is a completely digital means of payment, its value, with a couple of exceptions, is neither connected to any national currency nor to the price of gold or silver. It’s emitted or generated online and can be traded only digitally.
Blockchains record cryptocurrency transactions and are built in a decentralized way. No one can trust anyone in web3, because the transactions are in the majority of cases fully anonymous. That’s why to protect cryptocurrency from being faked or stolen heavy cryptography is applied.
According to CoinMarketCap, there are around 23,000 cryptocurrencies hosted on over 1000 blockchains worldwide. Each cryptocurrency is designed in its unique way and is supposed to bring new features to existing ecosystems. Payments in crypto are instant or near-instant, depending on the blockchain. Also, they are available 24/7 from anywhere. And the most important part is that there is no third-party verification of transactions. Blockchain networks are self-governed, implying a ‘trustless’ system of verification.
The biggest crypto by market capitalization, as well as the most important cryptocurrencies in web3 are Bitcoin and Ethereum.
The first crypto is Bitcoin and its exact date of creation is January 3, 2009. For the first year, its price was around 0$ and not many people believed in it. However, nowadays Bitcoin is over $60,000 and its price is constantly growing.
To be able to perform transactions with cryptocurrencies you require a crypto wallet. Modern crypto wallets offer multi-featured interfaces, convenient private keys storage, and safe transactions.
Spatium Feeless Wallet is a multi-currency crypto wallet. It makes crypto transactions affordable and cheap compared to many other crypto wallets. Spatium offers a revolutionary Feeless feature when transactions are paid in the crypto you send instead of the native crypto of the blockchain. Batched feeless transactions enable you to save up to 30%.
Stay protected in web3 with Spatium Feeless Bitcoin Wallet. It’s easy to operate and securely to use. Spatium Feeless Wallet is free to download. It’s available on Android and iOS devices. Visit our website to learn more about the wallet. Get it on your phone, test it, and enjoy your financial freedom!
Keep a close eye on Spatium Feeless Wallet.
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Security is the most important parameter in web3. The growth of the digital blockchain ecosystem brings to light various cyber threats. It means that Two-Factor Authentication (2FA) as an extra security means should be a must for crypto wallets.
What is 2FA?
Two-factor authentication is a security mechanism that helps to add an extra layer of protection to your assets. While the first step to get access to your crypto wallet account is the password or Face/Touch ID, the second layer of your assets security could be an authentication token or a confirmation through the mobile device.
2FA activation in Spatium: how does it work?
As we have mentioned, while logging into your Spatium crypto wallet account you are required to provide the password or Face/Touch ID (activate your private key). To make sure that it’s you who would like to perform operations with your digital assets, you have to ensure this again with the password or Face/Touch ID, plus use the second factor (2FA). Such an attitude significantly decreases the probability of unauthorized access. Even in case someone gets access to your private key (your password) and would like to steal your funds, 2FA will be a big obstacle.
How to set up 2FA for Spatium crypto wallet
Spatium crypto wallet provides an intuitive interface and makes 2FA activation accessible and user-friendly.
If you don’t have a Spatium wallet on your mobile device, go to the App Store or Play Market and download the Spatium Feeless Bitcoin wallet. It’s available on Android and iOS devices.
In order to turn on 2FA in your Spatium crypto wallet, follow 2 simple steps and boost the security of your crypto account:
1. Access the security settings
When you're logged in to Spatium crypto wallet, go to Profile and select Two-factor Authentication
2. Link Google Authenticator
When you enable 2FA you will see instructions how to link your Google Authenticator. Please, follow the instructions.
NOTE! DO NOT DELETE account associated with Spatium from your authenticator app, as well as Google Authenticator app itself. KEEP SAFE authenticator setup key.
What makes a Spatium crypto wallet your best choice?
Spatium is a time-proven crypto wallet that has stood out in the market of crypto wallets for the last 7 years. Spatium wallet has been one of the first to apply Multi-Party Computation technology which provides a secure storage and trading environment within the wallet. Having our customers in mind, we would like to provide even better security for their assets, that’s why we strongly recommend applying 2FA and minimizing the risk of account hacking. The set-up logic is straightforward and easy to follow.
Stay protected in web3 with Spatium Feeless Bitcoin Wallet. It’s easy to operate and securely to use. Spatium Feeless Bitcoin wallet is free to download. It’s available on Android and iOS devices. Visit our website to learn more about the wallet. Get it on your phone, test it, and enjoy your financial freedom!
Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay a network fee in the currency you send instead of native chain tokens. Read more about Feeless in the Changelog.
Keep a close eye on Spatium Feeless Bitcoin wallet which is building DeFi on Bitcoin and actively working toward the introduction of feeless crypto transactions and peer-to-peer crypto swaps. Follow us on social platforms: X, LinkedIn, Discord, and Telegram.
In our previous post, we discussed what blockchain fees are and their types. Indeed, blockchain networks operate in a zero-trust environment and each new block added to the blockchain is seen for everyone around the network. That’s why the block cannot be just added automatically, every transaction is verified by miners operating blockchain nodes (computing units that build the blockchain network). Miners add users’ transactions to the block. Network fees are the way users pay miners for their services.
Other than network fees, there are platform or trading fees. These payments are similar to traditional banking fees when bank customers are charged extra if they send money or exchange currencies. There are different types of trading fees and they vary from platform to platform. The present post aims to explain how to minimize fees and don’t overpay while making blockchain transactions.
How to reduce cryptocurrency fees?
1. Look into the exchange fee structure
If users have to go to exchanges like Bitstamp, Coinbase, Kraken, Binance, etc, they should better peek into the customer support section on the website and check the fee structure. Not all exchanges speak loudly about their withdrawal fees. Sometimes the exchange looks great until you try to move your digital assets somewhere else.
To make sure that exchange withdrawal fees are acceptable, try to buy and withdraw a small sum of crypto first. This will help you find out where the hidden fees are and whether you should proceed with that exchange or not.
2. Use MPC crypto wallet for cryptocurrency transactions
Multi-party computation (MPC) technology helps to minimize the communication between the wallet and the blockchain by hosting transaction signing processes off-chain. To compare, a multisig wallet or a smart contract wallet involves a lot of communication with the blockchain when each stage of transaction signing requires network fees.
3. Find and use exchanges with trading fee discounts
Trading fee discounts are like loyalty points. Every transaction comes with additional points which could be used later as a payment for a transaction.
4. Go for crypto-to-crypto transactions
If we compare crypto-to-crypto transactions and crypto-to-fiat transactions, the first type is cheaper. Also, users may protect themselves against crypto volatility by swapping their crypto with stablecoins. Stablecoin is a cryptocurrency whose price is connected to the US dollar.
5. Make transactions when network load is low
It’s a well-known fact that the busier the network is, the higher the fees are. There are some websites that help users to estimate Ethereum or Bitcoin fees but the major rule is quite simple. The lowest transactions are on early mornings on working days as well as throughout Saturdays and Sundays.
6. Try not to rush to make a transaction
Usually, users of crypto wallets can define the transaction fee to some extent. If they want a transaction to be written in the block as soon as possible, the network fee will grow. If they have time to wait, then the fee will be optimal. If they are eager to wait for a long time and provide a very small fee, then there could be a situation when the transaction gets stuck for days or even gets canceled.
To sum up
The fees you have to pay in web3 cannot be eliminated but they can be treated cautiously. Network fees could be minimized if you operate MPC-powered crypto wallets, such as Spatium Wallet. If you would like to escape centralized exchange fees, you also should look in the direction of Spatium Feeless Wallet which will soon perform peer-to-peer swaps and provide crypto exchange functionality. Spatium is a self-custodial solution where only users can get access to their digital assets.
Get the Spatium Wallet App and enjoy how user-friendly and convenient it is. Protect your crypto assets with MPC cryptography and save on fees while sending transactions to blockchains. Moreover, soon Spatium will enable peer-to-peer crypto swaps when you don’t need to go to centralized exchanges to swap cryptocurrencies. Stay tuned!
Spatium Bitcoin MPC wallet is easy to use and free to download. It’s available on Android and iOS devices.
Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay a network fee in the currency you send instead of native chain tokens (currently available for USDC on Ethereum. More chains and tokens will be added soon).
Keep a close eye on Spatium Feeless Bitcoin wallet which is building DeFi on Bitcoin and actively working toward the introduction of feeless crypto transactions and cheapest ever peer-to-peer crypto swaps without escrow.
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