As you know, when purchasing a good or service for cash, you are swapping cash for your desired item or service. Such as the name implies, a “Swap” most often means to ‘exchange one item or service of value, for another (or many) item or service of value (of equivalent value)’. Similarly, in cryptocurrency, a “Swap” refers to exchanging one cryptocurrency you hold for the equivalent value of another cryptocurrency.
To complete a Swap, most likely you will use a (normally centralized) service. This is similar to a trade, with the primary difference being that zero fiat currency is involved. Instead, the trade is of cryptocurrencies. During a Swap, you pay with an alternative cryptocurrency different (other) than the crypto you will purchase.
When you purchase a cryptocurrency through a trade (whether on an Exchange or through a Broker), you can pay for your cryptocurrency purchase with a “local” government-issued currency for a particular cryptocurrency (Example: USD, EUR, JPY, etc.).
Example and Description: When you have 1 Bitcoin (BTC), and would likeDash(DASH), one option you can exercise is to visit aDash FastPasspartner (likeLiquid).
The steps that follow will illustrate how-to swap your Bitcoin forDash, without having to take multiple steps of selling your Bitcoin for fiat. Then, you would purchaseDashwith the fiat received for your Bitcoin. Every transaction carries fees, so Swapping helps reduce your cost to switch over to another currency.
Step-by-Step: How to Conduct a Swap Transaction
To conduct a Swap transaction, we will utilize theLiquidSwap service to guide us and make it simple.
Step 1is to Sign-up atLiquid. If you already have an account, continue to Step 2.
- Click on [this link] and sign up to Liquid. You will be asked questions for auditing and compliance purposes. As regulations are rolled out globally, questions like these are common.
Step 2:If you have already signed up, and have successfully completed the Know Your Customer (“KYC”) process,click on this linkforLiquid’s Buy and Swap dashboard.
Step 3:Please be signed-in to yourLiquidaccount (look to view the page as shown in the image below). Then,click on the Swap tabon the Buy and Swap dashboard.
Step 4: If you have cryptocurrency outside Liquid, pleaseclick on this linkto make a Deposit.Locate the first dropdown list, shown next to the “Exchange” field. Select the cryptocurrency you currently have (that you are looking to Swap). In the second dropdown list (next to the “Receive” field), select the cryptocurrency you want to receive.
Example: For this step-by-step, we use Litecoin (LTC) as the cryptocurrency we would like to Swap forDash.
Step 5:In the “Exchange” text field, first enter the amount of LTC (Litecoin) you would like to Swap forDash. The “Receive” field, and the “Rate” amount in between the two fields, will auto-update (depending on the number you enter in the “Exchange” field).
Example: We will choose to exchange5 LTC, and the Platform will provide us3.090 Dashfor the LTC.
Statistically, the number of people in the world growing the BlockChain community and cryptocurrencies markets is small but growing very rapidly. So, if you have made it this far, consider yourself a Pioneer. Our entireDashTeam is committed to providing you with the best support in the world, as you adopt the more equitable financial system of cryptocurrencies.
If you have any stress or questions around these steps to Spot Trade and Swap, we invite you to get them answered today, 24/7 by visiting our remarkableLearning Resources portal:https://www.dash.org/learning-resources/.
Click here to go toLiquidand try out swaps, spot trades, or crypto purchases.
Thank you for reading! See you on the trading floor!
