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What Is an Instant Crypto Exchange and How Does It Work?

An instant crypto exchange is a platform, online or physical, that allows users to easily and quickly exchange one cryptocurrency for another or for fiat money. Any reputable instant crypto exchange provides near-instant trades, as it typically uses an automated process to match buyers and sellers.

Many crypto investors may have heard of an instant crypto exchange, but they often miss the benefits because they do not know how it works. If you are one of them, this article will help you to discover more.

How Does an Instant Crypto Exchange Work?

An instant crypto exchange brings together many exchanges through an automated process and an API to match buyers and sellers of different cryptocurrencies. The process typically involves the following steps.

  •       The user specifies the amount and type of cryptocurrency they wish to buy or sell, and the exchange then finds the best available rate by connecting to multiple different cryptocurrency exchanges.
  •       Once the best rate is found, the exchange will execute the trade by placing a buy or sell order on the connected exchange.
  •       The trade is then completed, and the user receives the new cryptocurrency or fiat money in their account on the instant crypto exchange.
  •       It is important to mention that the crypto assets remain on the original exchange. The instant crypto exchange only executes the trades, and this is why it does not have the need for a custody service.

What Are the Benefits of an Instant Crypto Exchange?

By using an instant crypto exchange, you open numerous benefits whether you are new to crypto or otherwise. Currently, these exchanges are popular among seasoned traders who want the best rates, speed, and other conveniences. Here are the popular benefits to note.

  •       Convenience – An instant crypto exchange allows for a more efficient and streamlined trading experience, as users can easily switch between different cryptocurrencies without having to create separate accounts or navigate through different trading interfaces.
  •       A wider selection of cryptocurrencies – A reputable instant crypto exchange typically has a wider range of cryptocurrencies available for trading. They are connected to multiple different exchanges as mentioned. This means that users have more options when it comes to buying or selling a particular cryptocurrency.
  •       Faster trades – The exchange offers near-instant trades, as it typically uses an automated process to match buyers and sellers. This is in contrast to centralized exchanges, which can take longer to complete trades.
  •       Non-custodial model – An instant crypto exchange does not keep or hold a user’s assets, so the user has full control and access to their funds at all times.
  •       Greater privacy – The platform requires less personal information from users than centralized exchanges, which can help to protect users’ privacy and reduce the risk of identity theft.

Final Thoughts

In conclusion, instant crypto exchanges are a valuable tool for those looking to trade cryptocurrencies quickly and easily. These exchanges offer a range of benefits including convenience, a wider selection of cryptocurrencies, faster trades, a non-custodial model, and greater privacy. While instant crypto exchanges may have higher fees than centralized exchanges, they are a useful option for those who value speed and ease of use in their trades.