Why Crypto Exchange is important?
If you've decided to venture into the crypto industry and purchase cryptocurrency, utilizing crypto exchanges offers the quickest, most convenient, and tailored approach.
A crypto exchange serves as a platform where individuals can acquire various cryptocurrencies using fiat currencies, either directly from the exchange or from fellow users looking to sell their crypto assets.
Whether it's an international or local Georgian platform, using an exchange provides an intermediary, ensuring secure buying and selling. This stands in contrast to direct transactions with individuals, where the risk of not receiving crypto, or facing issues such as asset confiscation, freezing, or blocking, is significantly higher.
For those seeking a safe and risk-free experience in buying and selling crypto, numerous trading platforms are available, including both international crypto exchanges and local Georgian companies. Each option comes with its own set of advantages, and in this blog, I'll explore the strengths of both international companies and Georgian crypto trading platforms, helping you make an informed decision.
Global Crypto Exchanges
In the international crypto market, numerous trading exchanges provide users with a diverse range of cryptocurrencies and additional crypto products and services. However, it's crucial to acknowledge that using these platforms comes with inherent risks, regardless of their size or reputation.
One notable instance highlighting the risks involves FTX, a leading crypto platform. Following a court order to pay $8 billion, FTX blocked account withdrawals and restricted user access to their assets. The platform, once among the top three exchanges globally, ultimately went bankrupt. It was later revealed that the founder of FTX had misused company funds and user-owned fiat or crypto assets to purchase personal, expensive items.
Another case to consider is Bittrex, where Liechtenstein-based Bittrex Global announced a cessation of all operations, concluding trading activities on December 4th. This decision was influenced by regulatory pressures, including a court case with the SEC that resulted in a $29 million payment by Bittrex.
In recent days, concerns have also arisen around Binance, the world's largest international crypto exchange. The platform's founder and CEO, Changpeng Zhao, resigned amid legal troubles. Zhao pleaded guilty to money laundering charges in a dispute with the US Department of Justice, personally paying $170 million, and his company, Binance, paying approximately $4 billion in criminal fines. Both Zhao and Binance face charges of money laundering, operating an unlicensed business, and economic malpractice, with the case currently ongoing.
What are the advantages of Global Crypto Exchanges?
- Large Selection of Cryptocurrencies - Platforms such as Binance provides a comprehensive selection of cryptocurrencies, ensuring users can easily find the specific digital assets they are looking for.
- High Liquidity - A substantial number of users gravitate towards major crypto exchanges, fostering high liquidity. This ensures swift and seamless transactions for buying or selling desired cryptocurrencies, without the need for extended waiting periods.
- Competitive Prices - Global crypto exchanges frequently provide users with optimal prices for both coins and tokens.
What are the disadvantages of Global Crypto Exchanges?
- Instability - As demonstrated by the cases of Binance, Bittrex, and FTX, numerous international exchanges face challenges related to the security of user-owned assets, contributing to market instability.
- Different Jurisdiction - If a trader encounters issues with their cryptocurrencies or transfers, navigating legal disputes can become both costly and complex, exacerbated by the fact that international exchanges operate under different jurisdictions.
Georgian Crypto Exchanges
As the crypto industry advances globally, Georgia has witnessed active development in this sector, giving rise to several domestic crypto exchanges.
These Georgian platforms offer distinct advantages, particularly for local users. Cryptal, among the Georgian exchanges, stands out by providing crypto traders, buyers, and sellers with a user-friendly platform, a diverse range of cryptocurrencies, and the most competitive fees in the market.
What are the advantages of Georgian Crypto Exchanges?
- Simplicity - Unlike their international counterparts, Georgian platforms are more user-friendly and comprehensible, especially for novice traders. Additionally, these exchanges operate in the Georgian language, providing an extra advantage.
- Fiat Deposit & Withdrawal - Depositing and withdrawing funds from one's account on Georgian exchanges is notably simpler. On Cryptal, users have the convenience of topping up their balance within seconds through a bank card or bank transfer from the comfort of their homes, allowing them to seamlessly continue trading.
- Local Jurisdiction - In case of any issues with a Georgian crypto exchange, users can easily engage in legal proceedings with the support of local legislation.
- Location - Unlike international exchanges, Georgian crypto platforms have their main offices located locally. In case of any inquiries, users can visit the responsible individuals on-site.
- Support - No matter how experienced a trader you are, you may always need help and a quick response from officials. Georgian exchanges are much more convenient in this regard and offer assistance in Georgian.
Where to Store Assets – on Global or Local Exchanges?
If you take care of your assets yourself, it is better to keep cryptocurrencies in a Self-Custody wallet, where you retain your Private Key and have full control over your cryptocurrencies.
It is important to understand how to interact with Self-Custody devices and digital wallets and be aware of the risks associated with making mistakes.
Otherwise, if you prefer to use the functionality of crypto exchanges for disposing and storing your crypto assets, Georgian platforms are a better option. You can visit the physical location of these platforms at any time if necessary and, in extreme cases, utilize Georgian jurisdiction.
Among the Georgian exchanges, Cryptal is the best option for storing your cryptocurrencies. They don't charge additional fees for the operation of the digital wallet, regardless of how long you keep your assets in it. Moreover, you can monitor your coins in real-time from a smartphone or any other device.
Additionally, Cryptal has extra security measures during account authentication and transactions.