We’re sharing practical tips from our own experience to help you navigate the exchange of your digital assets. As an aggregator for instant crypto exchanges, our Swapzone team would love to improve your experience with convenient cryptocurrencies swaps. Let’s explore these insights to make your digital asset exchanges hassle-free and educated. Are there any tips you already know?
Table of contents
1 – Check The Recipient’s Network
It might sound trivial, but it’s crucial to check the network when sharing your tokens. Different blockchain networks have specific requirements and characteristics. And unfortunately, it’s possible to accidentally send the tokens to the wrong blockchain (i.e. accidentally sending ERC-20 tokens from Ethereum to BNB Chain).
Thus, if you mistakenly send your tokens to the wrong blockchain, it can cause issues with transactions and refunds. So, before making any transfers, take a moment to confirm you’re using the right blockchain. It’s a simple step that can save you from potential complications and make your tokens reach their destination smoothly, making life easier for both you and the support team.
2 – Understand The Difference Between Floating And Fixed Rates
Let us explain the difference between floating and fixed rates in simple words. A fixed-rate crypto exchange means you trade your cryptocurrency at a set rate shown to you at the start, no matter if rates change later. For a secure swap and to get the exact amount you expect, go for fixed-rate offers.
However, fixed rates have some exceptions, too. If the overall token value changes a lot, the exchange might be canceled or replaced with a new rate; gladly, it’s usually being clarified before the exchange by the instant exchange. Or, while depositing to the instant exchange, be careful with the network fees: in the fixed rate case it’s important to deposit fast (i.e. the instant exchange receives your funds fast), within 20-30 minutes. For that, you need to set the network commission rates for fast transaction. Otherwise, when the network is busy, your deposit might take longer than usual. In that case, a fixed-rate exchange can’t happen. It’s something to keep in mind if you’re aiming for a quick and set exchange rate.
Floating rates might be a bit higher than fixed rates, but they come with risks. Going for the best rate involves taking some chances, and floating rates can be very unpredictable. So, if you prefer a safer option with no surprises, sticking to fixed rates is the way to go.
3 – Keep Native Tokens To Pay For Gas On The Network
To make transactions on certain blockchains, like Ethereum (for ERC-20 tokens) or Binance Smart Chain (for BEP-20 tokens), or Polygon (for MRC-20 tokens), you need to have their specific native tokens in your wallet. For example, if you want to send ERC-20 tokens, you must have some ETH (Ethereum’s native token) in your wallet to pay for the transaction fees, often called “gas.” The same goes for BEP-20 tokens on Binance Smart Chain and for Polygon – you’ll need BNB (Binance Coin) and Matic to cover the network fees. Having these native tokens provides you with transactions that can go through smoothly on their respective blockchain networks.
4 – Check Commission Details
When you’re using an exchange or wallet, they don’t always clearly display whether the network fee goes with the amount you are sending. Sometimes, they deduct it quietly, so you additionally need to pay attention to network fee. For example, you try to exchange 100 LTC to ETH, and the instant exchange gets the deposit 99.1 LTC, where 0.9 LTC goes for network fee. If you don’t check the commission details, it can affect the instant exchange rate.
In other words, it’s wise to check and understand how commissions work on the exchange you’re using to avoid any surprises and make sure you get the right amount back.
5 – Pay Attention To Memo
Before finalizing a transaction in the digital money world, it’s a good idea to check if there’s a “memo” section. Think of it like a note attached to your transaction, allowing you to include extra information or details. Most of the time platform or blockchain you’re using supports memos. Sometimes, memos are required for the instant exchange or exchange to identify the transaction correctly. So, before hitting that final button, take a moment to see if there’s any memo option available.
Summary
Navigating the world of crypto exchanges can be made smoother with a few key insights. Whether it’s confirming the right network for token transfers or understanding the difference between fixed and floating rates, these tips aim to enhance your experience. Keeping native tokens for gas fees, being aware of commission details, and checking memos all contribute to a more informed and secure crypto journey.
By applying these simple practices, you can make your digital asset exchanges hassle-free and make sure that your transactions are both efficient and protected. Remember, you can use Swapzone as a tool for most of the instant exchanges to easily find, choose, compare, and exchange nearly any crypto, making the process smoother and appropriate to individual needs.