One Stop Exchange: Swapping One Crypto for Another Is Easier Than You Think
Recent reports suggesting Coinbase will become the first major U.S. crypto exchange to go public on the stock market tell us one thing: the plexiglass that once separated the world of traditional finance from its digital cousin is starting to crack. There are other signs pointing to this conclusion, of course – the mountains of institutional capital that have flooded into the digital asset market in the past few years, to name but one.
Trading and speculation have undoubtedly been the main use cases of cryptocurrency in its formative years, with professional and amateur investors weighing up new blockchains and tradable tokens the same way Wall Street brokers analyse and transact bonds and shares. Until relatively recently, though, life wasn’t easy for those seeking to swap between the thousands of different cryptocurrencies in the market.
Thousands of Cryptos Make Swapping a Nightmare
With new coins and tokens emerging on a seemingly daily basis, a service was needed for users who wanted to swap between cryptocurrencies quickly and easily – to trade XRP for NXT, DASH for XMR, ETH for USDT, whatever the case may be. At the time of writing, there are over 2,000 different cryptocurrencies in existence, meaning busy traders must open accounts with numerous exchanges if they want to swap one crypto for another. After all, no one exchange lists every possible asset, and rates can differ dramatically between platforms.
Step forward Swapy, a service that utilises unique algorithms to parse the results from various crypto exchanges in real time, and find users the most profitable rate of exchange. Swapy executes customer orders on multiple trading platforms simultaneously, saving them the time and hassle of analysing volume (which is often fake, anyway), registering for and switching between exchange accounts, and constantly scouring for the best rate. What’s more, Swapy gives users access to low-cap and low-liquidity tokens at spot price.
At present, Swapy can be used to swap BTC, ETH, USDT, REM, USDC or PAX into a wide range of altcoins with just a few clicks. Over 15 exchanges are integrated, including major players like Binance, Bittrex, Kraken and Huobi. Transaction times vary from five to 20 minutes, but uniquely, commission is only ever applied to the % users save by using Swapy rather than an exchange.
Broadening Users’ Horizons
With over 50 million blockchain wallet users worldwide, and a large percentage of them custodied by centralised exchanges, many crypto-holders feel locked into one platform, with said platform doing everything they can to reinforce this notion.
What services like Swapy do is broaden users’ horizons, letting them benefit from better rates elsewhere while providing them with detailed information about the exchange process. Swapy also uses a liquidity pool for some tokens and coins, meaning less time spent waiting for exchanges and much faster swaps.
Swapping into Stablecoins When the Market Dips
It’s easy to see why professional traders and full-time investors might appreciate what Swapy offers. After all, they seem like the most likely beneficiaries of such a service, given that they seek to continually capitalise on market movements. But what about the everyday user who might have started a rainy day Bitcoin fund, or who occasionally buys the native tokens of projects that catch their eye? Does such a user have a specific need to swap between cryptocurrencies?
If they want to preserve their crypto wealth, then yes, such a need exists. Surges in market volatility highlight this point best, as individuals tend to want to hold stablecoins during turbulent periods rather than watch the value of their digital assets plummet. Liquid, price-stable and trusted, stablecoins represent useful hedges when the market dips, with dollar-pegged iterations such as Tether (USDT), USD Coin (USDC), Dai (DAI) and TrueUSD (TUSD) all having experienced growing demand. According to research by The Block, stablecoin transaction volume rose by 8% in the first three months of the year, and surpassed $90 billion for the first time ever.
Some stablecoins are even pegged to a basket of fiat currencies, as is the case with the Saga Foundation’s SGA. This particular cryptocurrency is pegged to the collective worth of the IMF’s Special Drawing Rights, an international reserve asset.
You don’t have to be a seasoned trader to recognise the value in swapping from, say, XRP into USDC when the crypto market takes a hit. Or of then swapping back when it recovers.
Of course, there are other scenarios which might tempt everyday users to swap one crypto for another: an unpopular protocol upgrade, for instance, might force you to reconsider your faith in a certain coin. Sure, you can sell it peer to peer or via an exchange; but swapping it for a better cryptocurrency via Swapy is the best option. After all, you’ll get the best rate and pay a modest commission only on money saved. The process is entirely transparent and there is an extensive list of supported coins, from esoteric altcoins to recognised stablecoins. You don’t even need to register for an account.
If the crypto market is ever to attain mainstream status, ease of use will be a key battleground. Swapy addresses a common pain point, letting users to get out of one token and into another with low fees and zero friction.