How to Do Real Time Transactions with Digital Asset Exchange?10 min read
Reading Time: 4 minutesReal-time transactions become a key necessity in today’s online environment.
Whether you’re a consumer looking to buy crypto assets or an enterprise trying to process international transactions, the convenience of instant funds transfers can be extremely useful.
Which leaves the question – what counts as a real-time trade in a digital asset exchange, and how do you take advantage of this?
We will dive deep in this post to explain the real-time transactions that can happen between digital currencies and assets — from which assets can do real-time to what it takes to open an account with a crypto-friendly bank.
What is a Real-Time Transaction on a Digital Asset Exchange?
Essentially, when you buy, sell or transfer an asset on a digital asset exchange, it’s in real-time — that is, it’s settled in seconds rather than hours or days.
Traditional financial networks such as wire transfer or ACH (Automated Clearing House) take 1-3 business days to settle and expose you to settlement risk in that time. By contrast, most modern crypto exchanges rely on technologies such as distributed ledgers to settle and validate orders in real-time.
The reason is that as soon as an order is placed and matched with a counterparty, assets are exchanged directly. Cash can be drawn from your wallet immediately, without waiting for several confirmation blocks. For users and companies that need access to the currency quickly and at an instant cost, these real-time settlement functions provide a world of opportunity.
Which Digital Assets Can Be Traded in Real-Time?
The short answer is – all major cryptocurrencies. Because they are decentralized and dependent on distributed ledger technologies such as blockchain, a majority of most well-known digital assets include real-time transaction support in their protocols.
A few key examples include:
- Bitcoin – As the first crypto, transactions on Bitcoin are verified in real-time with mining nodes verifying blocks every 10 minutes.
- Ethereum – Ethereum settles transactions real time in seconds, with its proof-of-stake consensus mechanism.
- Ripple – Ripple’s XRP token makes payments globally almost instantly via its decentralized exchange and consensus system.
- Litecoin – Blocktimes are faster for Litecoin than for Bitcoin, transactions close in real-time.
- There are also some 1:1 stablecoins that offer instant payments, such as Tether (USDT) and USD Coin (USDC). Those exchanges support these assets so users can trade, deposit and withdraw them in real-time.
Can I Transfer Assets Between Exchanges in Real Time?
Individual exchanges might settle transactions for themselves directly, but the movement of assets from one trading platform to another over the air in real-time may still be problematic due to technical restrictions.
The majority of crypto exchanges still need approval from the blockchain network before transferring funds, which doesn’t necessarily make cross-exchange transfers “real-time”. Wait times can take as little as 5 minutes to over an hour, depending on network traffic.
Some exchanges, though, are trying to make this easier. Eventually, as exchange services and blockchain networks continue to become faster and more scalable, we might even see true real-time interoperability. So far, transfer to and from most exchanges still needs confirmation.
Can I Make Crypto Payments in Real Time?
Most definitely, crypto is changing the way we pay in the online and offline world by enabling settlement in near real time. Multiple shops now accept major currencies directly via POS platforms such as The Kingdom Bank.
Likewise, peer-to-peer payments accelerate at a blazing pace. The Lightning Network mainstreamed Bitcoin micropayments by allowing instant real-time transfers for pennies on the dollar. Similarly, The Kingdom Bank lets any NCR-POS merchants accept instant crypto payments on their merchandise.
Technologies are also streamlining B2B payments. Ripple’s On-Demand Liquidity service pays international bills in real-time by migrating between XRP and different fiat currencies. It introduces the speed advantages of crypto into old corporate treasuries around the world.
With its growing use, real-time crypto has the potential to transform global payments by making cross-border payment transactions easy. Modern services such as The Kingdom Bank are realizing this dream through their digital asset regulated banking platform.
What is Required to Open a Real-Time Digital Asset Exchange Account?
In order to use these real-time trading and transaction features, you will require an account with a digital exchange that caters to the assets you wish to trade. The basic know-your-customer (KYC) rules, broadly speaking, are as follows:
- Government issued photo ID (e.g. driver’s license or passport)
- Address evidence (Utility bill/Bank Statement in the last 3 months)
- Email and phone number for account recovery
Some crypto-friendly banks may also require additional KYC (income sources or bank references, depending on the anti-money laundering regulations). Charges and minimum deposit amounts differ per exchange as well.
If you are looking for a truly frictionless real-time solution, check out a service such as The Kingdom Bank. With The Kingdom Bank being a fully licensed digital asset bank, you can open one account and trade more than 20 coins and tokens on the spot and keep fiat currency at the same time from a safe banking environment. You won’t have to jump between exchanges – you’ll have one account for all of your digital assets and transactions.
The ability to settle currency and assets virtually instantly through real-time capabilities on digital asset exchanges and networks is changing the way we do business globally. As more developments are made, cryptocurrencies and blockchains hold immense promise to reduce the friction in payment, banking and more through eliminating friction from the old plumbing of the financial world.
Platforms such as The Kingdom Bank, are leading us toward a world where all of your digital assets – fiat or crypto – are accessible from a single, real-time account. We’ve granted a full banking licence and sophisticated services, enabling you to take advantage of real-time trading, payments and transactions on the fly within a tightly controlled environment. For more information on opening an account and to start getting the benefits of digital finance in real-time, visit The Kingdom Bank online.
