Bitpapa Enters Cryptocurrency Exchanges

There are many ways to convert cryptocurrency to fiat. However, sometimes users don’t want to cash out completely and just want to move from one cryptocurrency to another.

Obviously, going into fiat and then rebuying doesn’t always seem to be the optimal approach for many reasons, including having to pay conversion fees more than once.

This is where cryptocurrency exchanges prove to be particularly efficient and convenient, and this is also where Bitpapa comes into play.

Understanding Cryptocurrency Swaps

Services that offer cryptocurrency swaps work somewhat in the same way as order book-based exchanges and peer-to-peer marketplaces. They allow all users to do the same thing (convert cryptocurrencies) but with different instruments. Above all, it is the user experience that is different.

Order book-based exchanges allow users to fine-tune their trades. They can enter orders at exact price points that they want to be executed and filled and pre-set the order amount as well. Of course, they also have their drawbacks, especially for people who don’t want to act professionally. They also require users to deposit fiat currency into their accounts with which to purchase crypto. This is in stark contrast to peer-to-peer (P2P) marketplaces, where users must trade with each other, and the marketplace only stores the cryptocurrency, which is then used to secure trades.

However, these types of platforms are not very flexible when it comes to the supported trading pairs. They are very well suited for earning in and out of some of the most popular cryptocurrencies, such as BTC and ETH, but if users want to convert to some other cryptocurrencies, they may run out of options.

Cryptocurrency swap services combine the simplicity of a P2P marketplace with the wide range of pairs that an advanced order book-based exchange supports.

Cryptocurrency exchange works best when there is a need for an immediate solution to exchange one cryptocurrency for another with the least amount of effort. That’s one of the reasons why so many exchanges and marketplaces have enabled this option for their users – as a useful addition to the list of features these platforms already support.

That is also exactly what Bitpapa Swaps brings to the table.

Streamlining the user experience

Bitpapa Swaps builds on and extends the functionality of the Bitpapa platform – a global marketplace for secure P2P trades. At its core, the platform provides users with a safe and secure trading environment by facilitating the correct and timely execution of trades that Bitpapa’s users make among themselves.

The platform currently supports the storage, sending, receiving and trading of such cryptos as Bitcoin, Ethereum, TON, Monero and the stablecoin USDT. Users can buy these with fiat and sell them for fiat, but they cannot convert them directly to each other.

Bitpapa Swaps is designed to fix this particular drawback.

There are at least two use cases where cryptocurrency exchanges can come in handy. In the first case, users may be looking to book their profits now and probably reinvest the gains later. Without swaps, they must first sell their coins for fiat and then buy them back via some fiat payment system (such as wire transfer), fees included.

With cryptocurrency swaps, it is possible to engage USDT as a proxy for fiat without actually using fiat and thus avoid payment system fees altogether (not to mention save time and effort).

In the second case, users may be looking to sell one crypto for another, such as Bitcoin for Ethereum, anticipating or catching the rise of the latter against the former. As in the previous case (without exchanges), they must first move from Bitcoin to fiat and then come back to Ethereum – the same fees apply generously (twice).

Now cryptocurrency swaps allow hopping from one crypto to another without facing the necessity of using fiat currency as an intermediary. To do so, the user just needs to jump on the Bitpapa exchange page, select a cryptocurrency pair, enter the amount of crypto to be converted and start the conversion.

The cross rate at which the exchange occurs is determined using the same technique as the price is calculated for P2P trades (as an average of prices received from 7+ major exchanges). The user can either choose a floating exchange rate or a fixed one. In the latter case, he will have a 10-minute exchange rate lock, within which he must complete the exchange.

The main idea behind Bitpapa Swaps is to provide a simple tool that will help Bitpapa users quickly exchange one cryptocurrency for another, with no trading knowledge required.

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