Exchanges

5 Ways For Crypto To Crypto Trading

With the massive adoption of cryptocurrency, more crypto to crypto trading options are rearing their heads. Crypto holders easily want to exchange, sell, buy and trade their cryptos. These means of exchanging cryptos will be discussed below.

Crypto To Crypto Trading Option 1: Centralized Exchanges

At the moment, centralized exchanges are more popular than the other options because of the first-mover advantage. It reminds users of the wall street trading mechanism, as it comes with algorithms, bots, and so on. In a centralized exchange, the exchange holds the crypto holdings. History is littered with tales of centralized crypto exchanges been hacked. One that comes to mind instantly is the infamous Mt. Gox hack. Annually, more than one centralized crypto exchange is hacked, which is alarming. One reason that it has a big target on its back is that the users’ crypto holdings are kept by the exchange.

Option 2: AMM (Automated Market Maker)

An AMM is a decentralized exchange that uses a mathematical formula to price the crypto asset. In this crypto to crypto trading option, there is no need for a counterparty or another trader before a trade can be made. People interact with smart contracts, and that is why it is called a Peer-to-Contract (P2C) transaction. AMMs do not use order book, meaning that order types are nonexistent here.

Option 3: Instant Exchangers

Those that use this crypto to crypto trading option have to head to the website of the instant exchanger and choose the cryptos they want. They also decide on the sum, and wallet before the transaction is done.

Instant exchanging services use a mix of other crypto exchanges, meaning that they have different places to source for the chosen coin.

Crypto to Crypto Trading Option 4: Derivatives

This option is more complicated than the rest, as different types of crypto instruments can be exchanged here like options and futures.

High-leverage instruments are common, and they are known to possess high-risk and return levels. This means that trading these instruments could allow you to win a lot or lose a lot.

Option 5: Peer-to-Peer (P2P) Exchanges

More people are craving for a crypto to crypto trading option that removes the need for a centralized body or custodial element. Out of other crypto exchange options stated here, the P2P exchange is one of the easiest to use.

WhalesHeaven is an established P2P crypto exchange that supports a myriad of cryptos and takes care of the issues that have been seen in some P2P exchanges.

This crypto to crypto trading option permits buyers and sellers to interact, while incorporating top-notch security level that protects the transaction.

Users of WhalesHeaven can seamlessly create an auction, choose the volume, then state an offer, which is submitted to the platform. Once the offer is set, the seller starts getting offers from potential buyers. Immediately the buyer is found, WhalesHeaven alerts the seller through email. It is that simple. As a crypto to crypto trading option, WhalesHeaven has created a safety mechanism that ensures that funds are secured throughout the entire trading process. Trading with your preferred currency is now possible, as it is linked to multiple chains.

Rose Nnamdi

Rose is an astute crypto writer that loves penning content on cryptos, DeFi and other blockchain-based platforms. I can be reached at nnamdirosemary@yahoo.com

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