The ongoing development in technology has rendered the world fast-paced. Paper money is now being regarded as conventional and innovative technology of cryptocurrency is taking the lead. The vast array of the crypto sphere is now equipped with numerous Block Chains. Each one has been formed for its own goal.
These include crypto casinos, improving scalability, providing loan services, or any other perk. So what do you do when your needs change? When you need Ethereum instead of Bitcoin? Well, you Swap!
Swapping: What is it & How did it start?
The value of each cryptocurrency that you own may change based on your requirement. Maybe you have Ethereum, and now, Ripple seems like a lucrative investment. WIth swapping you can buy Ripple in exchange for Ethereum. Much like when you need to change fiat currency based on the mainstream flow. Early on, to exchange that crypto for the one you want, you had to spell it out. Get money and then buy the crypto while also paying significant fees. To ease things up, the crypto-economy came up with the process of Swapping. So, If you are in the hub of cryptocurrency (a.k.a UAE), you can choose to swap with any coin you want with ease now.
How does it help investors?
Now that you know what Swapping is, let’s move on to why you as an investor would want to indulge in it? In other words, what is the benefit of swapping?
The crypto market is volatile and ever-changing. If you are a seasoned trader, you know how rapidly the prices fluctuate. Swapping your digital asset for another would reap monetary benefits for you. All you need to have is an eye for changing trends so that when the opportunity appears, you strike on time.
Diversify and Adapt
The fluctuation of the market is not well-appreciated by some enthusiasts. It is seen as a down mark, especially if you like to be in control. Swapping allows you as an investor to diversify your portfolio. That would mean that you are at the top of the game with a diversified collection of cryptocurrencies whenever prices change.
Have you heard the term staking? Certain crypto-assets allow you to get money without doing anything. So, Swap your crypto and dive right in!
How to Swap?
If you are ready to take the plunge, let’s find out how you can swap your cryptocurrency.
Swapping is a common practice in the crypt-sphere. One of the most common ways to go on about it is through exchanges. All you need to do is create an account, fill in your information, and send your cryptocurrency to them. Once you’ve completed the swap through the platform, your newly earned cryptocurrency will be available on the platform.
Keep in mind that uploading your crypto assets means giving up control of your funds. These will remain in the exchange’s control until you take it off. This is not necessarily malpractice since most exchanges also provide the option of e-wallets for you to store your cryptocurrency. Just make sure the exchange you are opting for is licensed and reputable.
These exchanges won’t keep your cryptocurrency and are decentralized in nature. This means they are accessible from anywhere in the world. These do not require any form of verification either. However, Decentralised exchanges have a limited variety of assets to swap. Typically they attract projects with insignificant funds listed on major centralized exchanges.
Over the Counter Service
Another option that you can opt for is an OTC. Ideal for a non-tech savvy, an OTC allows you to indulge in an exchange via a centralized API system. The interface is simple and easy to use. However, keep in mind that you may never get to know the final exchange rate with an OTC.
Is it worth it?
Like any other business avenue, you should remember that trading cryptocurrencies are not always a walk in the park. There are always risks in the market, be it digital or physical. If you do not calculate the trends properly in the crypto ecosystem, you are likely to face losses. Also, swapping is based on a fee, and you are likely to receive a lower value in return.
On the other hand, it is a seamless way out when your purpose is clear and you know which asset you want. It’s a tricky business, but the fall is always worth it when it seems scary. So really, Swapping is your choice on an individual basis. It depends on what you are willing to lose and gain. So, measure your expenses appropriately and choose wisely. Happy Swapping!