No matter whether you want to transfer BTC to ETH or make any other crypto exchange, there are essential tips to pay attention to.
We’ll present some of them in this article. They will help new traders understand how crypto transfers work. If you’re an experienced trader, feel free to read the article to brush up on the basics.
The goal of transferring cryptocurrencies as a trader is to make a profit. There’s only one rule that you need to follow when it comes to that — buy when low and sell when high.
In other words, you need to wait for the right moment. You should make a swap for crypto that’s currently low but has the potential to become valuable. Once the price reaches its peak, you need to sell it and make a profit.
Of course, this is easier said than done. But once you get into the swing of things, you’ll be able to spot trading opportunities.
Every online cryptocurrency exchange will take a portion of your transaction as a fee. Some exchanges have higher fees than others. So, make sure to pick the ones that will cost you the least in the long run. Yet, they should still offer decent trading services.
No matter how great the exchange is, you’ll eventually have to pay certain fees. No platform offers its services for free.
If a cryptocurrency is heavily traded, there might be some delays. You might have to wait a little longer than usual before your payment is processed. The good news is that many blockchains are upgraded to address this issue. For example, Ethereum 2.0 will be able to process 100,000 transactions per second as opposed to the current 15 TPS.
Still, this delay is something to take into account when trading. Prolonged delays could affect your trading strategy. Let’s say you’re focusing on Bitcoin. It is the most traded cryptocurrency at the moment. Hence, long transaction waiting times (10+ minutes) might occur quite frequently.
If you want to trade less popular cryptocurrencies, you might struggle with liquidity. Essentially, you won’t be able to find someone willing to make a trade right away, as there aren’t many people trading a certain pair.
In this case, you should seek a cryptocurrency exchange that offers good liquidity for the pair. With it, you will be able to make transfers as soon as possible. Failing to do so might also affect your trading strategy and bring you to a standstill.
If liquidity doesn’t exist at all, it’s always better to focus on another trading pair. That way, you have at least some chances of transferring cryptocurrencies.
There are two kinds of exchanges — centralized and decentralized. And it’s important that you understand how both types work. The best thing about decentralized platforms is that they don’t require you to open an account. So, you won’t leave any kind of sensitive info there. Besides, they almost always offer on-the-fly transfers. You only need to input your wallet addresses to begin trading.
Since there are no intermediaries, decentralized exchanges can also offer lower fees and overall faster transactions.
Now that you know some basic tips for trading cryptocurrencies, feel free to begin implementing your strategy. Start efficient and quick transfers that will make you a profit.
If you’re not sure where to start, we suggest that you first pick the right online crypto exchange. Therefore, do your research and settle for a DEX that meets your needs. Note also that it should provide great liquidity for the cryptos you want to transfer.