With the rise in demand for various cryptocurrencies, there has been an increase in the number of exchanges. One such exchange is VirWox which uses a simple set up process to have users gaining access to their flexible exchange platform. By opening an account with them and funding it with one’s choice of currency, users can enjoy quick exchanges depending on their account level.
VirWox Exchange Model
Before using the platform, one is required to open an account and fund it with their preferred currency. Their model uses a simple speed versus rate system. You get to use the exchange in the following two ways:
- Immediate order execution – In instances a user wants their order executed in the fastest time possible, one will have to choose the best available rate at that moment then place a market order.
- Limit order – This occurs when a user wants to wait for a better rate than is currently available. The user then can set their desired rate and the system will execute the order once somebody is willing to take up that rate.
VirWox Order Execution
When one wants to change currencies, they log in into the system and go to the page which caters to the particular currencies they want changed. Once the user enters an order, the system automatically processes it using a matching system. In case the system has a similar order, it’s automatically matched with it. Partial executions may also take place until the complete order is fully executed.
Once the money has been exchanged, the user can request for a withdrawal which is usually executed in a matter of seconds. When platforms such as Paypal and Skrill are involved the process may take quite some time.
Levels and Limits on VirWox
The account level on the platform may affect the amount of deposits done using Paypal or Skrill. The number of days since the last deposit using Paypal/ Skrill determines one’s account level. The account levels range from 0-4 with level 4 being the highest. The limit periods are computed using a rolling basis depending on previous transactions.
Security and Privacy
Security is paramount on any exchange platform and VirWox is no exception. The exchange is operated and serviced by a physical company based in Austria. The management company is one that’s founded to operate in the virtual world. The platform advises its users to go for a strong password which should be kept securely.
In terms of privacy, one is required to give out their names for the purposes of transferring money into bank accounts. The exchange also receives information when one uses payment systems such as Paypal or Skrill. The company promises not to share the information with outsiders unless obliged to do so by relevant authorities. They also claim not to store any information related to credit cards.
The exchange operates terminals on the virtual world which are necessary in order for users to validate their accounts. The validation process is quite simple and it provides a permanent link between a user’s virtual world avatar and their VirWox account. The terminal should automatically detect one’s username and if it doesn’t then it’s not authentic.
VirWox charges a small fee as commission for matching and executing orders on the system. The commission consists of a fixed charge and a variable percentage of up to 3.9%.
Commissions for limit orders are only charged when the order is executed. Various fees on deposits apply depending on the platform that one uses. Withdrawals also attract a handling fee depending on the currency. For example withdrawing one Bitcoin will attract a handling fee of 0.0005 BTC.