Coin swapping sites are crypto exchanges that allow people to exchange their crypto assets instantaneously. Usually, traders do not have to wait for a long time before they can swap crypto, neither do they need to jump through hoops to achieve this. Coin swapping sites are usually decentralized, meaning that the funds of users be it crypto assets or fiat currencies are not held by centralized exchanges. There is no single authority that can freeze the accounts of users in the instant cryptocurrency exchange.
Cryptocurrency swap services tend to connect those that want to buy and sell digital currencies together. In this case, they are peer to peer decentralized exchanges. Some are designed to allow crypto enthusiasts to trade crypto against smart contracts, and they are called Automated Market Makers. The third type of crypto swap platform is the cryptocurrency exchange aggregator, which aggregates the prices of cryptocurrencies from different exchanges. People who exchange cryptocurrencies through this means to have access to different rates.
Decentralized coin swapping sites allow people to exchange cryptocurrencies without uploading personal details or undergoing the KYC process. On the other hand, centralized exchanges may request this.
Why do people swap tokens?
People use crypto swap platforms for different reasons, which will be discussed below. As always, before using crypto swapping sites for any purpose, it is crucial to do your due diligence.
• Portfolio diversification
People use coin swapping sites as a way of diversifying their portfolios. To reduce the risks or hedge them, traders tend to swap cryptocurrencies to other tokens. This is a way of reducing the risks that the portfolio faces. Having different digital assets can help mitigate the impact of volatility.
• To make a profit
Crypto investors can sell their digital currencies or purchase on a crypto swap platform to make profits. To those that engage in cryptocurrency trading, it is common to see them buying an asset when it is cheaper and selling it when the price rises. Usually, they use swap platforms with affordable trading fees and no withdrawal fees like our exchange, Whalesheaven to achieve this purpose. Astute crypto traders prefer exchanges with low fees to allow them to make more profit. The timing is crucial to traders.
• Earn passive income
Some traders may opt for swapping their tokens as a way of earning passive income. They exchange a token for others that permit staking. By staking, they earn APY for a period. Some may swap their coins for others to provide liquidity in pools. Liquidity providers are usually given LP tokens to signify their percentage of ownership of the tokens in the pool. For providing liquidity, the user earns passive income which comes from trading fees. Automated Market Makers use liquidity pools. The same can be said for some decentralized lending protocols. Some of these passive income streams have security risks and other types of risks that people face.
What crypto can be bought on crypto trading platforms?
Before deciding on the cryptocurrencies to buy, it is important to seek independent financial advice as this does not constitute investment advice.
At the moment, almost every type of cryptocurrency can be purchased on multiple exchanges. Those coins with no liquidity may not be easily available for purchase or sales. Some exchanges allow people to buy major coins, meaning that they can swap bitcoins for other widely used cryptocurrencies like Ethereum. In other trading platforms, users have access to a wide array of tokens including meme coins.
How do crypto swap services work?
Crypto swap ecosystems work differently. Some ask their new users to sign up and provide their details before they can utilize any feature on the platform. Others may allow their users to merely connect their crypto wallets and make a trade instantly.
When the user signs up, they can use the feature to swap instantly. As earlier mentioned, some decentralized exchanges allow people to trade with themselves, smart contracts or access aggregated information from other exchanges.
Centralized exchanges, on the other hand, hold the funds of users on the platform, allowing them to exchange one coin for another.
What to Look for in Coin Swapping Sites
While looking for a crypto swapping platform, it is important to consider some features.
Security is important for both decentralized and centralized exchanges. It is crucial to check if there are security features put in place to safeguard the crypto assets of users. For centralized or custodial exchanges, it is important that their security system is topnotch and a great deal of their crypto holdings is stored in cold wallets.
Decentralized exchanges should also offer a safety net for different participants using their features. Do they use a multi sig wallet like our exchange, Whalesheaven?
• Local regulations
When choosing a crypto exchange, check if the local regulations in your country allow you to utilize their services. This is to prevent one from using those exchanges that are not allowed in the country. Some countries have outrightly banned their citizens from holding crypto or using any exchange.
• Transaction and withdrawal fees
Fees are important to every astute trader because it decides the amount of money that they have to leave with the exchange. Trading platforms with cheaper trading fees tend to attract crypto enthusiasts because they do not spend a lot of their profits on fees.
Our Exchange, Whalesheaven, has an affordable trading fees structure. It is necessary to verify if there are withdrawal fees. Some exchanges charge this type of fee, while others do not. Whalesheaven does not charge any withdrawal fee.
When deciding on an exchange, opt for one that has the liquidity to allow you to sell your tokens quickly. It is important to use those with high trading volume so as not to be affected by high volatility. No trader wants to wait for days before they can sell their tokens.
• Volatility protection
Whales tend to affect the crypto market conditions. When they sell a large volume of coins, there is a great chance that the value of crypto may plummet. Large volume traders may not fancy this volatility and need an exchange with a layer of protection. Only a few exchanges like Whalesheaven offers this feature.
An example of a coin swapping site that ticks the boxes?
Our secure crypto exchange called, Whalesheaven is a peer to peer crypto swapping site. Unlike other exchanges, we do not request our users to submit their private information or undergo any KYC requirements.
As a Peer-to-peer custody-free coin swapping exchange, users can exchange cryptocurrencies from small to large volumes with the highest possible deal protection. Traders are allowed to buy and sell private and stable coins against Ether or Bitcoin with the best rates. Every trade that is done on our exchange, Whalesheaven, is without the control of a third party. This means that we neither hold your funds nor decide on who you trade with, at any point in time.
Using this popular crypto swap platform is as simple as reciting the alphabet, as the user interface was designed to be used seamlessly by both new and professional traders. The trading fees on Whalesheaven are the cheapest, at the moment, allowing users to enjoy the maximum level of profit possible. Withdrawals of cryptocurrency to any wallet are free on our custody-free exchange. We are different from other non-custodial exchanges that request fees to allow their users to withdraw cryptocurrencies. Using our crypto exchange doesn’t come with any withdrawal fees or limits on the platform.
WhalesHeaven allows crypto enthusiasts to trade large volumes of coins without affecting the market conditions. It offers a shield that reduces the volatility when a user decides to sell their cryptocurrencies.
Typically, when a large number of coins are sold in the crypto market, the market is affected negatively. Bouncing off the basic Economics law of demand and supply, the higher the supply of an item, the lower its value. This plays into why the value of a coin may reduce if a whale disposes of a large amount of it.
To reduce this volatility, using this swap platform is not a bad idea. On our exchange, users can automate their trading process by enabling WH Cypher. Security is topnotch on Whalesheaven, as it uses multisig wallets to provide the best-decentralized protection for your funds that is available today in the best crypto swap platforms. Users can create an auction, choose the volume, make an appealing offer and submit it to the platform. Potential buyers will send their offers to the seller. The seller is alerted to the offer.
Whalesheaven has a wide array of tokens to choose from and swap seamlessly from stable coins, Bitcoin, Ethereum, DeFi coins, gaming coins and other major cryptocurrencies.
While opting for a Coin Swapping Site, it is important to use those that tick your boxes of expectations. Before choosing any, do your due diligence by researching what it offers. Different exchanges have varying rules. Some have stringent guidelines like custodial exchanges which must be followed.