Bitcoins can be bought either on exchanges or from marketplaces. The exchanges obviously also use marketplace to get their coins.
My question is, why would anybody use exchanges? There are so many drawbacks, and the only benefit seems to be that ....well, what, exactly? That it takes a wee bit of an effort to buy from the marketplace directly?
The drawback with exchanges:
- You have to pay a fee or a commission to the exchange.
- You have to wait for them to do their thing, often it can take multiple hours or even days.
- You are unsure of the rate at which you buy or sell, and have far less control. It depends on how long it takes for the exchange to go out and get them for you, and it also depends on which rate they are able to acquire. If you are buying them on your own, you know you'll be looking for the best deal. Why trust the exchange to maximize your profits?
So why do people use exchanges? Is finding sellers/buyers on marketplaces willing to trade at the market rate really that hard?