- Details
As the crypto market continues to grow, new projects appear with their blockchains and tokens aimed at achieving some specific goals. Some of them come intending to beat Ethereum and offer better scalability and other perks at no cost to developers. Furthermore, there are others created solely to be used within decentralized applications such as crypto loans or online casino-like services.
This incredible variety of options thus leads all users to the need to exchange one crypto for another – just as the dollar, euro, and yen are exchanged. Learn through this blog today what crypto-switching methods exist, what pitfalls crypto enthusiasts can face while trying to do so, and what solutions CryptoMate offers to solve such challenges. For more information, you can visit https://limmer-coin.net/.
Why do Whales Execute Swapping?
Although instead of directly converting crypto to don't currency, crypto whales use it in other ways with the best possible version of it. However, instead of cashing out the crypto, they need it in the old way. Moreover, whenever there would be a need of cashing out the cryptocurrency, instill will help out instantly. They also spend the major expense using the instep and some other predefined expenses rather than moving crypto into the cash amount and then processing the payments through banks which would ultimately cut out steps in the whole process.
How To Swap Crypto: 3 Ways To Exchange Crypto
Here we will discuss the three methods which are widely used by a non-tech-savvy user. There are ways of exchanging cryptos: OTC, centralized and decentralized exchanges.
1. Centralized Exchange
If seen in the last few years, there has been a lot of growth in the popularity of crypto. However, several centralized exchanges have also emerged where demand can be met. They compete with each other by the number of trading pairs. However, the moment you swap cryptocurrency, with a trading pair you can exchange at a low cost, or even for free. However, such diversity comes at a cost. Such exchanges typically have a high number of traders as their target audience. which has seen the platform adjust its offers accordingly and make it more difficult for the general public to join.
2. Decentralized Exchange
DEXs were first invented as an alternative to centralized exchanges. However, in reality, they have succeeded in removing some of their issues as well. Furthermore, they do not require any kind of verification as the funds are transferred directly between users' wallets. They are available from anywhere in the world and are entirely "decentralised," meaning they don't rely on a single central server.
3. OTC
OTC (over-the-counter) exchanges, or OTC for short, are one of the easiest ways for a non-tech-savvy user to exchange crypto. However, they are commonly found integrated with centralized exchanges through APIs as well as provide a simple interface to their users without all these confusing graphs. However, it is a coin that also has its dark side: one of which is ambiguity and the other is the worst rate.
1. Opacity- Whereas, OTC is usually able to transact only through centralized exchanges, therefore, the whole process is opaque in a way. Users will never know the final exchange rate which may leave them vulnerable to manipulation.
2. Worst rate- Since OTCs add their fees on top of each transaction, the final rate may be much worse than centralized exchanges.
Cryptomat provides solutions
Here at CryptoMate, we have developed our method of exchanging all cryptos, which plays a vital role in eliminating the problems associated with all the mentioned methods and also helps in simplifying the whole process.