If you ever felt the need to exchange crypto, you probably know the pain of doing it. You open some shady sites and try to guess if you're going to get scammed or not. But the most unpleasant thing about them is that you don't know if you're offered the best market rates or not. So, basically we have two problems. The first one is the problem of trust. You don’t know if you can trust the exchange you’re dealing with. And the second one is all about exchange rates. You’re not sure that you get the best deals on the market.
You can go to the most popular exchanges and trade there. But first, you have to deal with registrations, passing KYC/AML procedures, which means you have to provide personal documents and information, and you’re still not sure that you can buy your desired assets at the lowest prices possible.
Crypto volatility is one of the most commonly known things to the general audience about cryptocurrencies. Thus the prices for the same asset can differ a lot between exchanges. That’s how arbitrageurs make money. They buy assets on exchanges where the price is significantly lower and sell them at exchanges where it’s higher, leaving the surplus in their pockets. Because there are more than 500 crypto exchanges, they always have some options. At the same time, arbitrageurs have special software that allows them to track all price changes and differences, that’s their advantage. What’s left for ordinary users?
There’s a great option for those who don’t want to engage in arbitrage activities. Just use an exchange aggregator, such as Swapzone. How does it work? An aggregator has many exchange partners, that give it access to their API and transmit prices in real time. Thus, any user can get the list of the best deals anytime. The aggregator usually chooses only the reliable exchanges with good reputation as partners, so your money is safe during the process. And it gives its users the opportunity to exchange their cryptocurrencies at best rates available on the market. For every chosen pair the aggregator loads all offers from all connected exchanges, displaying their exchange rates with all hidden fees.
All you have to do is:
Fees are usually a big problem that eats a big chunk of investor’s pie over time. Even 1% can make a difference in the long run. The pioneer of index funds, John C. Bogle, created them to save money for individual investors in the long run - instead of making many deals they make one deal and pay a minimal fee. If you think that fees don’t influence your performance, you’re wrong. The SEC provides an example of fees heavily affecting portfolio performance - if you have a $100,000 investment portfolio, with a 4% return over 20 years, you’ll double your investment to $210,000 with a 0.25% annual fee. If you pay 0.5% annually, the return will be less by $10,000. If your annual fee will be around 1%, you’ll end up making $30,000 less. That’s a pretty large amount for a retail investor, which can be important for your lifestyle when you finally decide to retire.
That’s why it’s important to always choose the right deals. To do it, you’ll either have to switch between countless exchanges or use a tool that has all deals listed on one platform. That’s why Swapzone comes in handy. The only thing you have to do is to choose a crypto pair and the amount that you want to swap and you’ll see all offers received from other exchanges. They are ranked from the best offer to the worst. You have to choose one and proceed to the next screen where you can enter your blockchain address for receiving coins and get the address you have to send coins to. You don’t have to go to other exchanges, because Swapzone shows all these deals in its own interface.
Crypto rates are one of the most important factors in choosing an exchange. What are the remaining factors to be considered?
A very pleasant thing about using that kind of an aggregator is that you get the information instantly. You enter what you need and get many deal offers in return. It doesn’t matter what you want to exchange, Bitcoin for Ethereum or Lisk for OmiseGo, you’ll always be able to find the necessary liquidity.
So, how to exchange crypto with most profitability? Remember one thing: do your own research, avoid fees and don’t fall for big names. A large exchange doesn’t mean the cheapest one. Also, now you don’t have to spend your time on searching for the best rates - because you have aggregators such as Swapzone at your service.