Did you know that you don’t have to buy bitcoin in order to acquire the much sought after digital asset? You can simply swap some other cryptocurrency such as Ethereum or Litecoin for Bitcoin. A crypto swap or cross-chain atomic swap is an inter-chain exchange that involves exchanging one crypto or digital asset for another.
Crypto swaps could also be defined as the transfer of cryptocurrency built on a particular blockchain to another. Crypto swapping could be from your personal wallet to another, or from your trading wallet to another.
Suppose you have Ethereum but you need Bitcoin. Instead of buying Bitcoin with Rand, you could easily swap your Ethereum for Bitcoin through a crypto swapping service. With crypto swap, you do not have to buy bitcoin if you don’t need it. Not every exchange has a swap feature. This feature can only be found on top-tier exchange platforms like Remitano.
Can Inter-chain Exchanges Boost Your Digital Asset Portfolio?
You may ask why would anyone need to swap crypto? Well, according to Coinmarketcap there are over 4000 different cryptocurrencies in circulation and each with its own peculiar purpose and feature. However, one may decide to swap from one crypto asset to another in order to earn profits.
So, in today’s post, I’ll be demonstrating how to easily earn profit through crypto swaps.
Ready? Let’s go.
Diversify Portfolio
Do not put your eggs in one basket, will forever be a valid statement in the crypto space due to the high volatility and unforeseen contingencies in the market. One of the best ways to earn and at the same time protect one’s investment is to have a diversified portfolio.
This way, you won’t lose all your portfolio whenever one of your coins ‘dumps’ or drops in value drastically.
With crypto swapping, you could swap some percentage of your coins for other crypto assets instead of buying them with fiat currency. For example, with Remitano Swap, you’ll easily be able to swap your USDT or BTC with about 10 different cryptocurrencies.
Swapping Volatile Crypto for Stablecoins
Another way in which you can easily profit is by swapping your crypto asset into a stablecoin whenever there’s negative sentiment in the market pushing prices downward or the bear market is in effect. As the name suggests, a stablecoin is meant to be stable – that is, there’s little to no increase or decrease in price. The most popular stablecoin is USDT which is meant to be backed by real US dollars and generally is tradable at a 1:1 ratio.
If you were fortunate to buy bitcoin before the recent bull run, you will be in massive profit by now. Suppose you notice that a bear run is coming, the best thing to do is to swap your BTC for a stable coin to avoid incurring losses.
Stablecoins are also cryptocurrencies, and so they can be easily and quickly swapped into other cryptocurrencies. For instance, instead of converting your coin to Rand again, you can swap it for stablecoin which is less volatile than most cryptocurrencies. And once the market is ripe for re-entry, your stablecoin can be swapped to your preferred coin thereby increasing the value of your portfolio.
It is no news that timing plays a very important role in crypto trading especially those who are involved in swing and intra-day trading. Day traders can easily lock their profits from trades by swapping them for USDT.
Since it is faster and more convenient to swap a digital asset than sending it from one exchange to another, traders can easily book their profit by converting their crypto to stablecoins.
Find out the different types of stable coins available.
Case Study: Remitano Invest
Investing in altcoins (other coins that are not Bitcoin) is an easy way to make a quick profit in the crypto space. Remitano offers an investment feature that allows users to invest in reputable crypto assets with ease. However, to use the Remitano invest platform, you need to have USDT.
Now imagine you’re holding BTC or ETH, and you need to sell some of your assets and then buy USDT to use for your investment! This process is tiring, right?
This is where crypto swapping saves the day!
With the aid of the swap feature, all you need to do is simply swap some of your BTC or ETH into USDT and then use your USDT for your investment.
How to Swap Crypto?
There are various ways to swap your cryptocurrency for other digital currencies. However, if you do not want to go through the stress that comes with conventional exchanges, then a platform like Remitano is your best option.
How to Instantly Swap Crypto on Remitano:
Create an account and complete your signup process.
Verify your email.
Buy Bitcoin or any altcoin you want.
Visit the Swap section and choose the Crypto you would like to swap.
Input the amount you like to swap.
Select the crypto you want to swap or receive in exchange
Confirm the swap and the transaction.
As easily as that, your crypto swap is completed instantly.
Using Remitano swap is the fastest means to swap crypto in South Africa. It does not require you to go through the time-consuming verification processes. Besides, all swap transactions are always completed within a few seconds.
Swap cryptocurrencies on decentralized exchanges
Decentralized exchanges (DEXs) are exchanges that are built on the Ethereum network. Ethereum’s smart contracts allow developers to issue crypto tokens on its blockchain. These coins can be swapped for other altcoins or ETH on a decentralized exchange. Some of the popular DEXs include Uniswap, SushiSwap, Balancer, and 1Inch Exchange.
Understanding how to effectively swap cryptos will save you a lot of stress and potentially make you profit in the crypto space. A lot of traditional and P2P exchanges have also integrated the swap feature to make the trading experience seamless for their users.
Originally posted on https://decentralised.africa/
