Crypto-to-crypto swaps, explained
How do crypto-to-crypto swaps work… and what are the top tips for performing them safely and cheaply?
Any top tips for storing cryptocurrencies safely?
Always double-check the transaction before confirming and take precautions.
Of course, there are a few safety tips that you should follow. Be vigilant for phishing scams, and make sure that you’re using the official Ledger Live app.
Never share your recovery phrase, or store it in a computer or smartphone — and only trust the details that you see on the screen of your hardware wallet.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.
How do Changelly swaps through Ledger work?
Ledger offers a hardware wallet combined with an app to securely manage crypto.
It all begins by setting up your Ledger hardware wallet in a few simple steps. The dedicated Ledger Live wallet means that you can install all of the latest coin applications in the tap of a button.
In order to swap one cryptocurrency for another, you’ll need to make sure you have access to the Exchange app — as well as applications for the two coins in your chosen trading pair.
Next, it’s time to go to the Swap tab and pick the two cryptocurrencies in question — as well as the account of origin and the destination. Enter the amount you want to swap and double-check the rate that’s on offer. Last but not least, verify the transaction details on your device, and get the swap confirmed.
What are the challenges beginners face when buying crypto?
Finding a trustworthy provider, and certainty when it comes to fees, can be tricky.
Just like businesses with decades of trading experience gain the trust of shoppers, crypto brands that have been around since the early days of Bitcoin achieve credibility — establishing a track record for delivering dependable service.
Increasing numbers of large companies are now accepting digital assets as a payment method, meaning cryptocurrencies are increasingly entering our daily lives. But for mass adoption to be achieved, newcomers deserve to use platforms that offer full transparency when it comes to trading fees… as well as reactive customer service if they need assistance. The best brands now deliver live chat functionality, meaning users can speak to a real person if they have questions or need some troubleshooting tips.
Fast-moving markets also mean that the value of cryptocurrencies can fluctuate sharply… and with barely any notice at all. This can result in slippage, where the amount of Cryptocurrency B you get in exchange for Cryptocurrency A declines in the time it takes for a transaction to be finalized.
Providers such as Changelly counter this by delivering a fixed swap rate that means you’ll know how much crypto you’re going to receive in advance — in exchange for a higher transaction fee. Alternatively, you can bring costs down by using a floating rate and swapping your digital assets at the current market price. Changelly’s intuitive service is now available through Ledger, delivering an easy and secure way of swapping crypto.
Do crypto swaps always have to happen through an exchange?
No — some hardware wallets offer dedicated apps that eliminate the need for going through an exchange altogether.
The blend of a hardware wallet and app can deliver top-notch security, impressive transaction speeds, and dramatically reduce the costs associated with making a swap. Some exchanges charge sky-high fees for the privilege of changing one digital asset for another, but it doesn’t have to be this way.
What should beginners look for in a swapping platform
Security, control and choice should all be at the top of a crypto enthusiast’s shopping list.
Crypto swaps shouldn’t just be simple, but they should always take place in a secure environment. Some centralized and decentralized platforms leave you with little choice but to lose control of your coins while a transaction is under way.
Once you’ve found a platform you can trust, your attention should turn to the range of cryptocurrencies that’s on offer. Leading brands currently support dozens of different digital assets — including some of the most sought-after coins on the market.
The best crypto swap platforms listen carefully to user feedback, and continually add new cryptocurrencies in line with demand. They also take great care in delivering a user interface that offers a high degree of familiarity to people who are more accustomed to fiat-focused platforms.
You should also look for a streamlined experience that eliminates fragmentation. Security can be undermined if you have to continually move your crypto between the platform where you buy it, the exchange where you swap it, and the wallet where you keep it. Peace of mind (and a lot less hassle) comes from providers who deliver all of this in one place.
Why are crypto-to-crypto swaps so popular?
Just one look at the crypto markets offers a powerful insight into why seamless swaps between altcoins are in demand right now.
Right now, we’re in a rare phenomenon that’s known as “altseason” — a time when Bitcoin takes a backseat, and cryptocurrencies with a smaller market cap steal the show.
At the time of writing, Bitcoin’s dominance has fallen to just 43.9%… that’s the lowest it has been for more than three years.
For many newcomers to the crypto markets, BTC ends up being the coin they gain exposure to first. What follows is a journey of discovery — learning more about other digital assets, the use cases they offer, and the opportunities they bring.
Unfortunately, there’s a challenge: many of the solutions on the marketplace right now are complex and confusing. This can be especially daunting for someone who has never transacted in cryptocurrencies before — especially considering there’s a risk of losing funds if a mistake is made.
