What Is A Swap: A Safe And Profitable Exchange Of Cryptocurrencies

The swap is in demand due to the fact that it makes it possible to change the structure of the investment portfolio, reduce potential losses, increase the amount of assets, etc. If you need to exchange crypto and want to make the most of a large number of transactions, you can use swap strategies with flats.

Swap Characteristics and Features

A swap is an agreement to sell a crypto asset with a simultaneous obligation to buy this asset back at a predetermined cost. A swap is a derivative financial instrument, since when signing an agreement, conditions are discussed in relation to the underlying investment assets. If you want to exchange cryptocurrency, it is important to know that a swap transaction consists of two steps:

  1. Opening a deal. The initial exchange of coins is carried out.
  2. Closing the deal. A refund is made, both parties receive back the cryptocurrencies transferred to each other.

This financial instrument is distinguished by the fact that the terms and volumes are not typical, they are determined by the agreement of the two parties to the contract. The duration of a swap can range from a few hours to several years.

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Where to exchange Bitcoin : service selection

Finding the right crypto exchange is easy if you follow a number of criteria:

  • Reserves. The largest reserves of cryptocurrencies are observed in crypto-exchanges, more modest – in exchangers. If we are talking about a large amount, you can discuss the operation with technical support. Before that, it is recommended to study the BTC / USDT ratio in order to choose the current rate.
  • Duration of work. It is worth cooperating with those sites that have been operating on the market for at least a year.
  • Reputation. The low price of Bitcoin is not the only indicator that should attract you to the resource. A reliable and profitable exchanger will have a high status, a large number of positive ratings. This service will be mentioned by experts and traders in chats and forums.
  • Reviews. It is recommended to look for them on independent thematic portals, where you will find objective assessments. Among Ukrainians, the largest European crypto exchange WhiteBIT and the world-famous Binance platform are in demand.
  • Collection of payment system. It must be taken into account during the transaction, but some small exchangers may not indicate this amount in order to lure newcomers and cash in on them.
  • Commission. If you see that the current Bitcoin exchange rate is higher than on other sites, be sure to evaluate the commission fee. Exchanges and exchangers independently set the amount and conditions for debiting the commission. Often this fee is included in the exchange rate. However, this is not a static indicator. It may vary depending on the type of crypt, the selected operation, and in some cases, it depends on the time of the day.

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Of course, everyone is looking for a more attractive course, but if you neglect the listed rules, you can be left without savings.