If you’re reading our blog, then you are more or less familiar with the crypto market. It’s not a secret, that along with the rise of crypto assets grew the supply of exchange services. Virtual assets (or crypto) exchanges can be roughly compared to stock exchanges, but instead of traditional assets, you buy and sell tokens, or tokenized assets.
Top exchanges offer both marketplace and custody for virtual assets, the latter being reffered as wallets. Don't get tricked by the term, there's much more to being a wallet than just fitting the pocket. At the very least, history shows that wallets are less prone to losing your money than exchanges. But how to understand which is what - are exchange wallets really wallets? What else do you need to know before engaging into trade?
Money on an exchange isn't really yours
What the title says and the reality is – your exchange account balance is just a number in someone's database. Protected by some tests and backups, exchanges still might experience issues that could lead to database corruption – and then it will be the customer service agent to guide you through the limbo of balance restoration.
Unlike exchanges, virtual asset wallets actually try to utilize what made Bitcoin a thing in the first place – the blockchain. Wallets don't keep a separate sheet to calculate who owns whom the money and use the underlying blockchain technology to take care of that instead. Every transaction is recorded by a global decentralized network, and you shall never worry about the redundancy of your funds.
Exchanges take too much risk
It doesn't come as a surprise that exchange service providers profit from trading activities. Sometimes they are even willing to use their reputation to accommodate virtual asset sales of new projects, becoming their gateway to the market. And as it happens, not always these projects bring returns to their sponsors. And just like with managing users' money, sometimes exchanges struggle to manage their users' personal data as well. The inability to follow the core regulatory procedures, like know-your-customer (KYC) and anti-money laundering (AML), can become deadly in the long run.
Some exchanges try to be the front-runners in customer safety and enable just a handful of different crypto assets, like the big five: Bitcoin, Ethereum, Ripple, Litecoin and (surprisingly) Bitcoin Cash. Following demand, other exchanges expand their lists to house tokens of at least the top 30. In extreme cases, exchanges might list hundreds of various virtual assets with sometimes questionable quality.
Exchanges are not novice-friendly
If you've just started to learn Bitcoin, you probably need an easy exchange to begin with. In fact, you actually don't need to know the difference between a limit, and stop-limit orders, to buy your first Ethereum, EOS or PLBT. Virtual asset exchange services primarily target traders, who usually need a wide array of instruments to maintain portfolios, follow strategies and above all – speculate.
But for normal people, complicated interfaces and unfamiliar terms will not help but ruin the whole experience of exploring virtual assets. And how about the fact that only some exchanges allow to buy and sell them for real euros and dollars? Even today many token exchanges still do not have required licenses to offer so-called fiat (euro or dollar) trading services, and have to rely on surrogates like Tether (USDT) or USD Coin (USDC).
The crypto market can be challenging. For instance, a recent study showed that in 2018, 66% of Europeans heard about crypto assets, yet only 9% of them bought some. One of the main reasons behind low investments is that people don’t know how virtual assets work.
The OSOM way of trading virtual assets
We understand the frustration when it comes to picking the right service. You break your head over whether a platform is safe, offers what you’re looking for, and delivers transparent procedures. We get it, and because of that, we want to change it. We doubted that the market needs another exchange, and realized that the only way to solve the issue is to develop something completely different.
Start with a wallet
Fundamentally, OSOM is the wallet of wallets. Our core goal is to let you store your assets in a secure environment with cloud-hosted private keys and real transactions over blockchains. It is easy to set up and hard to lose, and by nature is not limited to any particular currency or virtual asset type – a real multicurrency wallet for the era of globalized finances.
Connect your bank
You don't need a special intermediary like PayPal or credit cards to convert some EUR to BTC - just deposit your Euros to OSOM exchange at no cost! Buy your Bitcoins or Ethereum, or sell them back, if you want (one simple 1.5% conversion fee applies both ways). Withdraw the euros right back to the same bank account. Again, withdrawals are free.
Tap to trade
Complex interfaces and endless procedures are fun killers. In OSOM, you just need to specify what you want to get, how much you want to spend and push the big blue button. There is no way to make it even simpler, we tried.
Don't want to trade manually? Hate to read charts, analyze market movements, or guess price direction? Well soon you will not need that. Instead, we are working on our proprietary Robo Adviser technology, which can track your portfolio and adjust it automatically on the fly, while you can have your sleep at night.
Already using two or more exchanges to access the assets of your interest? Great stuff, we do that all the time! For your convenience, OSOM has an option to connect API keys of your favorite exchange accounts within our unified interface and give you full control over your funds. No complex configurations, just copy-paste the API keys and you're good to go.
Last but not least, you really don't want to ask yourself if you can trust a service with your hard-earned money. In fact, you want the government to take care of that. That is why OSOM is licensed and compliant with regulators in the EU.
Besides the regulations to protect you, there are other things you might want to explore to ensure the maximum safety of your funds in the long run. For example, take a look at our 5 tips on buying Bitcoin.
The biggest barrier to get started in tokenomics is lack of easy to understand and easy to use resources. Virtual asset world is complex, cluttered with jargon, requires efforts to understand and expert knowledge to stay safe. OSOM is being built to change that. We are not preaching the idea of everybody getting involved with virtual assets. We are doing our best so virtual assets become accessible to everyone.