When you are into crypto, you want to have a place where you can swap your coins, even the rarest ones, safely and fast. How to find a platform that not only complies with these requirements but offers the most profitable exchange conditions? Let us have a look at how to choose a good cryptocurrency exchange service and whether an instant or a traditional service is the best option for you.
Decide whether you prefer a traditional or an instant exchange
While both traditional and instant platforms have their drawbacks and benefits, you might prefer one over another to swap BNB to FTM. So, if you choose a traditional platform, you get:
- A wallet directly on the platform: it supports all the coins available on the website. Such wallets are very easy to use which is perfect for beginners. For professional traders, they are convenient because they are always online (hot wallets).
- Fast transactions: usually, such platforms have their own liquidity pulls. So, every transaction is performed on the platform. It means that there is no need to wait until the swap is confirmed on a blockchain which speeds up the swapping process.
- Lower fees: for the same reason as above, fees are usually lower than in other places. It happens so because the transaction is not performed on a blockchain. So, you don’t need to pay a blockchain fee.
However, not all is that good. There are some drawbacks, too:
- Custodial service: your coins are kept on a platform, and the platform has the private keys, not you.
- Registration and verification are needed to access swaps without limits.
- A withdrawal fee might be charged if you decide to move your coins from the platform’s wallet to your own wallet.
- If there is not sufficient liquidity, your transaction might be stuck for an indefinite period of time.
What about instant exchanges?
Instant exchanges belong to a newer type of exchange platform. If you choose an instant cryptocurrency exchange site, you get the following benefits:
- No mandatory registration nor verification even though some platforms offer opening an account to get additional perks.
- No limits on the number of swaps or the number of coins to exchange.
- A vast variety of coins to swap in any direction.
- Non-custodial service, you are the only one who manages your funds and has access to them.
- The best rates – an instant exchange monitors and compares the deals on the majority of the main exchanges and picks the most profitable deals.
Cons? They are the following:
- A liquidity provider’s fee – instant services do not have their liquidity pools. They pull liquidity from the major platforms and thus, pay for it.
- No wallet on the platform – you need to have your own wallet to exchange cryptocurrency on an instant exchange. While it is convenient if you aim at a long-time investment, for trading such an option might not be convenient.
Now, check whether the selected platform is safe, whether it supports the needed coins, and finally, start swapping.
