When you are looking for a safe and profitable EWT to BNB exchange, you need to follow some rules. It is required to ensure a safe swap at the most convenient rates.
First of all, decide what type of exchange you are searching for. Traditionally, cryptocurrency exchange platforms are divided into the following categories:
- Traditional vs. instant
- Custodial vs. non-custodial
- Centralized vs decentralized.
Traditional and Instant Exchanges
Traditional services are among the major platforms. They offer a full range of services, including wallets, trading opportunities, etc. Such platforms have their own liquidity pulls. All swaps are performed “within” an exchange, off-chain. So, users aren’t required to pay transaction fees, and the time needed to confirm a transaction equals zero (transactions are performed within a platform, not on the blockchain). However, if you are exchanging a rare coin, liquidity issues might occur. If it happens, your transaction might be delayed. For how long? Until there is enough liquidity in the network.
Instant platforms such as LetsExchange are newer than traditional ones. These platforms pull liquidity from major liquidity providers. They don’t have their liquidity pulls. So, you might never face issues with liquidity – your transaction is performed in a place that has sufficient liquidity to complete it. Transactions are performed on-chain.
To use a traditional cryptocurrency platform, you need to pass a rigorous registration and verification procedure and provide a lot of information of personal and financial character. To use an instant service, you don’t have to register an account. While some platforms will offer you such an opportunity, it is not mandatory.
A traditional platform will offer a wallet. It is a custodial service. It means that your private keys will be kept by a platform. If you decide to move your funds to a different wallet, be ready to pay a fee. In case of an instant exchange, you send your funds directly from your wallet and receive the swapped coins to your wallet. Private keys are held by you. This service is called non-custodial.
So, if you opt for an instant exchange, check the cryptocurrency list price – LetsExchange has it available, and swap your coins at the most convenient rate.
Custodial vs Non-Custodial Exchanges
Custodial exchanges keep your private keys. You use a wallet, can exchange coins, withdraw them, and perform all operations. But you don’t keep private keys to them. Many traders consider it a big drawback. All major exchanges are custodial exchanges.
Non-custodial exchanges do not keep your private keys. Private keys are kept by you. It boosts the security level of your funds. However, for day trading, it might not be convenient.
Centralized vs. Decentralized Exchanges
Most platforms are centralized. They offer a high security level and at least the most important services needed for swaps.
Decentralized platforms are already available, too. This platform type is newer than centralized platforms. These are normally peer-to-peer exchanges. Normally, one needs to understand properly how everything functions. There are no intermediaries and guarantees that a swap will be safe. So, along with such a benefit as lower fees (you don’t pay for the intermediary service), there is a drawback in the form of additional risks.