We will discuss about crypto swaps and particularly Atomic Swaps, a new way to do cryto swaps today. So, what is an atomic swap? An atomic swap creates automated, self-enforcing contracts that execute specific actions once predetermined rules are met with fee-free trading. Centralized exchange platforms such as Coinbase Pro, Binance, or Gemini are arguably the financial institutions of the cryptocurrency world. That’s because, without these platforms, most crypto traders and investors would find it difficult to exchange cryptocurrencies. In effect, centralized exchanges have become gatekeepers for cryptocurrency trading.
Security: Always check reviews to make sure the cryptocurrency exchange is secure. If your account is hacked and your digital currency transferred out, they’ll be gone forever. So whilst secure and complex credentials are half the battle, the other half will be fought by the trading software. Each exchange offers different commission rates and fee structures. As a day trader making a high volume of trades, just a marginal difference in rates can seriously cut into profits. There are three main fees to compare: Exchange fees – This is how much you’ll be charged to use their cryptocurrency software. What currency and coins you’re trading can influence the rate. Trade fees – This is how much you’ll be charged to trade between currencies on their exchange. A marker fee is the cost of making an offer to sell. A taker fee is the cost of taking an offer from somebody. Deposit & Withdrawal fees – This is how much you’ll be charged when you want to deposit and withdraw money from the exchange. You’ll often find it’s cheaper to deposit your funds. Also keep in mind some exchanges don’t allow credit cards. Using debit/credit will usually come with a 3.99% charge, a bank account will usually incur a 1.5% charge.
Atomic Swaps: Underneath the Hood Take a look at the image above which has been taken from Coin Central. Let’s see what is going on here. Alexandra has some BTC and John has some LTC. They want to swap the coins with each other. The two of them then open up a payment channel. The instigator of this swap (let’s say Alexandra) then creates a contract address. He contract address is like a multi-lock safe that takes care of both of their funds. By creating the address, Alexandra deposits her BTC and produces a value as well. The value acts like the key while the hash generated from it will pretty much act like a lock for the safe, Upon doing this, Alexandra then sends the hash to John. John generates a contract address using the hash that has been given to him by Alexandra, John sends his LTC to this contract address. Only Alexandra can unlock the litecoin in this address because she has the value which generates that particular hash. Alexandra can get her LTC by signing a transaction for John’s contract address and John can retrieve the BTC by signing a transaction for Alexandra contract address. However, until now, John doesn’t know the value that generates the hash. So, how exactly is he going to unlock the address? Find additional details on Swap Cryptocurrency.
Changelly is one of the best-known platforms, delivering a fixed-rate mechanism that protects against the risk of market fluctuations when tokens are being swapped. Changelly claims the stability is assured by integrating a small reserve inside the exchange rate when the final quote is given to the user. This month, the platform launched an iOS app as well as a second version of its Android app, making it even easier for users to convert coins on the go. Another very good choice is Atomiic.io.
The Atomiic.io team is glad to welcome you at our service. We have done the process of cryptocurrency exchange simple, safe and comfortable. Our customers don’t need to create accounts or store their funds at Atomiic.io. We offer swaps of more than 300 cryptocurrencies. Our team is always glad to add new coins to the Atomiic.io list of currencies and is looking for new partners to make our platform even better. Source: https://atomiic.io/.
