Convert Trading: Simple Crypto Swaps Without Fees

Introduction

Trading cryptocurrencies is a skill that you need to study and practice on paper before delving deep into it. When you open an exchange application or its web interface, you come across various options. These options include spot trading, futures trading, options trading, margin trading, and copy trading. Using any of these options needs ample prior knowledge. Technical and fundamentals analysis enable you to trade through using these options. One of the trading options is Convert Trading, which is easiest of them all.

What is Convert Trading?

Convert Trading option is available almost on every major central exchange dealing in cryptocurrencies. They include Binance, KuCoin, OKX, Coinbase, Kraken, Bybit, Gate.io, etc. Convert trading entails swapping one cryptocurrency to another without selling one and buying the other. It is the best option for beginners. There is no need to do elaborate technical or fundamental analyses before switching from one asset to another.

How Convert Trading Works

If you want to swap your coins, you will simply go to the trading window of the application where you can find spot, margin, P2P, Convert and Options. Choose Convert from the available tags. You will be provided with two boxes. In the upper box you need to select the coin you want to swap and in the lower box, choose the coin you want to receive now.

Market Convert

After that, you can choose either “max” option to convert all the available coins in your portfolio or enter any amount manually. Once you have entered the desired amount, you will be shown a quotation of the number of coins you will receive. But since the prices change rapidly, the provided quotation is just for a few seconds. If you do not press “convert” button to confirm the transaction, the quotation is updated automatically according to the latest price. The preview updates 4 to 5 times if you do not proceed. Then it stops and you need to repeat the procedure.

For example, you have 500 $AEVO coins in your portfolio. Frustrated by the downtrend of the coin, you decide to sell it and buy $WLFI. However, spot trading does not attract you and you want to simply convert the coins. Going to the “Convert” tab, you choose $AEVO in the upper box and select maximum option as you want to swap all the coins. In the lower box, you choose $WLFI. Immediately, you see an estimate of the number of $WLFI you are going to receive if you agree instantly. If you wait for a few seconds, the preview of the conversion changes and prices are updated.

Limit Convert

Just like Spot trading, you can set a limit order in convert trading. Continuing with the previous example, if you want to convert $AEVO to $WLFI only when the latter coin is available at $0.20, you need to place a limit order. This order will be filled only when $WLFI reaches your desired price level.

Why Use Convert Trading Option

In Spot Trading, your trade and orders are subject to the liquidity provided by the order book of the related coins. For example, you place an order to sell your $AEVO at the market price. But if there is insufficient amount of $AEVO to be sold in the order book, your order will either remain unfulfilled or will be partially filled. This will hamper your buying $WLFI at the price you had expected. Convert trading is the solution for such problems. You need not worry about the order books.

Ease is the second advantage that convert trading offers. For beginners, it is inconvenient to go through charts and understand the patterns. They also find it hard to analyze macroeconomic factors and their impact on the market. Put simply, technical and fundamental analysis is essential to master the art of spot trading. To bypass these intricacies, convert option is ideal for a smooth and simple execution.

Trading fees can dent your realized profit in spot trading. Futures trading can be unattractive due to funding fees. The choice of convert wins again as it is generally free of any cost. Many exchanges claim that they offer very competitive rates.

Your portfolio may sometimes look messy and disorganized. You might be holding a few assets that have not performed as per your expectations. You want to hold a small moon bag in case there is a sudden pump in future. The rest of them can be swapped in a single interface using the convert trading option.

To beat the volatility of the cryptocurrency market, there is hardly a better choice than convert. As has been mentioned earlier in this discourse, spot trading depends on the order books.

Things to Remember

Although conversion is free of trading or funding fees, you will notice at a few occasions, it can be more expensive than spot trading even if you had been charged for the fees. This is because exchanges tend to provide you the quotations after keeping their own margins. After all these platforms are built for earnings, so nothing can be expected to be absolutely free.

Due to this tacit tactic, the choice of convert for large amounts may not benefit you. It is suitable only for beginners and for smaller transactions.

This is undoubtedly convenient, but success and fortune come to those who learn to walk beneath the weight. You should try to learn technical as well as fundamental analysis so that spot trading does not seem tricky any more. The more you study, the better you can perform in crypto trading. Knowledge teaches you how to follow a planned strategy and how to control your emotions during a trade and between trades.

Conclusion

The sum and substance of the discussion is that convert trading is a highly quick, smooth, convenient and easy-to-understand option. It is ideal for beginners and for those with small portfolios. It does not cost you trading or funding fees, yet there can be some hidden charges, due to which it does not suit those who want to trade large amounts.