Whether you are a trader looking to make a quick profit or someone who needs to purchase cryptocurrency in a pinch, transaction speed is everything. Knowing how to quickly convert one cryptocurrency to another is a must-know for any crypto enthusiast.
The three main factors to consider are:
- The registration process
- The speed of the exchange
- Technical restrictions of the cryptocurrency
Here, we will look at all three of them and help you determine the fastest way to convert BTC to XMR.
Which Platform Is the Best to Register and Start on?
Registration speed is important, as certain platforms may need a few hours before you can start trading on them. These platforms usually verify your identity through KYC and AML procedures.
Know Your Customer
Know Your Customer (KYC) is the process of verifying a user’s identity. On KYC platforms, you will need to provide an ID verification before you can use the exchange.
- You can regain access to your account if you lose it.
- It can help prevent tax and legal problems.
- It can help prevent malicious transactions, as the exchange has data on everyone.
- It reduces the speed of the registration process.
- Your personal data may not be secure (especially in the case of a hack).
Anti-Money Laundering (AML) is a broad policy that involves controls and audits to monitor suspicious activity. This can be detrimental to your privacy, as your transactions will be monitored more closely.
- It helps prevent cryptocurrency you own from being used for nefarious purposes.
- It ensures the platform is in line with governmental regulations.
- The registration process will require verification, thus taking longer.
If speed is your utmost priority, then non-KYC/AML platforms are the better option for you. Just remember that the registration process is not the only thing determining the speed of your transactions.
Another major factor you must consider is which type of platform to use: a centralized one where you relinquish control for speed or a decentralized one for maximum privacy.
Which Platform Conducts Transactions Faster: Centralized or Decentralized?
Once you have decided to purchase the currency, it is important that the transaction be completed ASAP. This is because prices are constantly fluctuating, and a profitable trade may be completed at a loss once the transaction is completed.
Features of Centralized Exchanges
- They are usually faster than their decentralized counterparts. This is because they are able to automate their processes and confirm trades faster.
- On top of this, centralized exchanges also offer more tools for traders, as well as added-value features.
Just because centralized exchanges are faster, it doesn’t mean they are perfect.
- The biggest drawback of centralized exchanges is how susceptible they are to hacks. Since all the information is stored on a cluster of servers, hackers can wreak havoc if they gain access to them.
- Also, centralized exchanges are hosted by a third party that monitors all transactions. Therefore, they are not anonymous.
Features of Decentralized Exchanges
- Decentralized exchanges operate on a peer-to-peer basis. Since there is no third party involved, it is impossible to hack into a decentralized exchange.
- Transactions are anonymous and are getting faster by the day. For example, Godex.io’s BTC to XMR exchange now processes transactions in between five and thirty minutes. Click here for more details.
- A government can’t control this type of exchange.
- They are still not as fast as centralized exchanges.
But the types of platforms are not the last factors that affect the speed of exchange. Let’s take a look at the next important peculiarity.
Currency Pairs Influence the Speed of Exchange
Depending on the blockchain technology powering it, one currency may be much faster than another.
For example, the transaction speeds of Ethereum are much faster than Bitcoin. As such, transactions between Ethereum holders are processed much faster.
BTC to XMR Conversion Speed
Bitcoin takes about ten minutes to confirm a transaction. However, there are a total of six confirmations required for a transaction to be completed.
Monero takes on average two minutes per transaction, with a total of ten confirmations required for completion. This should help you approximately determine how long it takes for you to convert Bitcoin to Monero.
It is best to go for a centralized exchange if you are looking for a complicated KYC/AML registration and quick transactions. A decentralized exchange with a hassle-free registration process (no KYC or AML) and decent transaction speeds is a reasonable middle ground.
For example, you can use these services, as it is a decentralized exchange with transactions taking between five and thirty minutes. Considering the fact that you also get unmatched anonymity through this exchange, you can see why it might be the preferred option for investors.