The world of crypto — Trading
Trading can be a tedious business. With all the thousands of exchanges and hundreds of tokens or coins to be obtained it might be a puzzle what is the best place to obtain crypto. Especially when you want to sell currency A and want to buy currency B it is a very complex matter. The coins or tokens which are available on a single exchange are in general the ones with a higher marketcap. The chance on high profit ratios are smaller on those currencies. To be able to have a higher chance for decent profit lesser known crypto are required, but these are seldom available on a single exchange when going from lesser known currency A to lesser known currency B.
This issue causes a lot of trouble. When you still want to proceed you have to take several steps to achieve your goal. You need to deposit currency A at the first exchange. There you make a trade towards one of the more generic cryptocurrencies as Bitcoin or Ethereum. That balance you must withdraw and send to the second exchange. There you have to make an additional trade to currency B. And finally, to get it on your own wallet you withdraw again. All in all, it concerns two trades and at least three transactions to go from currency A in your own wallet to currency B in your own wallet again. And when you need to use decentralized exchanges the required amount of transactions grows fast.
A broker like Changelly or Ethershift can be a solution for this. These allow you to trade between tokens. You send currency A to the specified address and get currency B in return. Only one transaction needs to be performed by yourself, the other one is done by the broker. This saves a lot of effort of needing to switch between exchanges and the costs of all the transactions.
One additional advantage of using a broker is the fact that it works as OTC trading. When buying for example Bitcoin via the OTC market that is being done against the current value of the coin. No matter how much you want to purchase (there are of course limits to it), the price stays the same.
That is in general not the case when you purchase on the exchange itself. The play between demand and supply forces the price up when there is a large demand. The first coins may be bought against the price of the time, the coins bought latest will have a higher price.
That is not the case when using a broker. Before the trade is started the exchange ratio is indicated. Based on the amount of crypto you want to pay or to obtain all variables are eliminated. In the end the transaction is fulfilled against these conditions and the first and the last coins are all against the same ratio. Of course when trading yourself you might be able to get better rates, but for that you need to be on the right time at the right place, plus some patience is required. A broker like Ethershift offers the service to do the trading for you against a small fee, with the advantage of buying in the same way as OTC.
