What types of rates are there?

In simple terms, the exchange rate of a cryptocurrency is the proportional relationship between one digital currency and another or the amount that is required from a cryptocurrency to obtain one unit from another

Cryptocurrency exchange rates show the current price of any of the selected cryptocurrencies. In the crypto business,cryptocurrency exchange prices are normally calculated as average values for all crypto markets in the world where this cryptocurrency is traded at the moment. You can follow the exchange rate of digital currency in order to find the best cryptocurrency exchange rate for buying and selling

The cryptocurrency exchange prices are updated every 30 seconds on well-known and well-reputed platforms. You can easily learn crypto exchange rates online for free in real-time

Unlike the traditional currency, no one sets the rates. On each exchange, the digital currency exchange rate changes at different time intervals. That is, to accurately understand the cryptocurrency rate you need to calculate the average value of the exchange rate on all crypto markets

Like traditional currencies, the exchange rates of digital currencies are also determined through two different types of exchange rates: the fixed and floating exchange rate. It is never considered secure to follow the floating exchange rate system due to the highly volatile nature of cryptocurrencies. Floating rate may cause significant difference between the expected amount of crypto and the amount you actually receive. Fixed rate is safer and will guarantee the exact amount to be received, however, the number here is usually lower than average in the market and is only fixed for a certain time

A floating exchange rate system is considered more appropriate realistically in determining the rate of exchange in the digital currency market. As virtual currencies are labelled as one of the most volatile digital assets, the floating exchange rate fits the cryptosystem as it works in accordance with the nature of cryptocurrency hence, any transaction has its own unique exchange rate.

The floating rate tends to change any other second due to the highly volatile nature of the digital currency market and ever-changing network fees

As a result, you end up with either more or less than you thought you would. It's also a fact that the floating exchange rate may change within seconds. It’s true that the rapidly changing exchange rate is not considered a good sign.

However, if you keep a close eye on the performance of a digital currency for a certain period of time and take help from charts, news, graphs and other tools, you can predict to some extent whether the exchange rate will go up or down, and then you can exchange according to it

Advantage

As a basic rule, when exchanging one digital currency for another using the floating rate system, the exchange service facility provides the best rate on the market and the user pays the least fee possible.

Plus, if the market fluctuations play in your favour, you may end up with a more significant amount of the expected crypto than the actual amount that was shown at the very beginning of the exchange.

Disadvantages

The issue with the floating exchange rate mechanism is that you always have to take into account the element of volatility risks. As favourable and unfavourable rates are both expected in positive and negative ways, you might be able to get some extra income or less than expected

In simple terms, a fixed exchange rate is a rate that certainly matches with the amount shown to the user at the beginning of the exchange, free from further rate volatility. As digital currencies are famous for being highly volatile in nature, implementing fixed rates is considered very risky for the exchange

In order to lock the rate, you just need to shift the rate switch from Floating to Fixed position. This will activate the “fix rate” feature and guarantee the rate shown on the screen. As soon as the transaction takes place, a user usually has 15 minutes to send the money

Advantage

The benefit you have here is the certainty of the amount you are going to get from the very beginning of the exchange

Disadvantage

Obviously, it's a safe way to play in the crypto market, but nothing comes free; you have to pay an extra fee for eliminating risks. Let's assume if the market goes up during the transaction, it would not affect your income as the rate won’t rise along with it, hence you will not get additional revenue

If you prefer to remain safe, and you do not wish to earn from the volatility of a digital asset, it would be better to choose a fixed exchange rate as the element of risk is minimized to a maximum extent due to the fixed exchange rate throughout the day

On the other hand, the floating exchange rate mechanism is more suitable for risk-takers. Many people jump into the crypto market to make a quick earning, and a floating exchange rate system is the best way to try luck

Go to Swapzone to start the process

Select the digital currency that you want to exchange

Specify the exact amount you're going to transfer

Choose a digital asset you would like to get in the "Get Up To" section

On the left side, below the “Select Pair” tab you will see the tab “Filters”

Select the first row “All Rates” and put a tick in the box “Fixed Rates”. Swapzone will now only show you the fixed rate offers