 | Cryptocurrencies, unlike traditional currencies, only exist as a shared digital record of ownership maintained on a blockchain. A user sends bitcoin units to another user's digital wallet. The transaction isn't deemed complete until it's validated and added to the blockchain, which is done through a process known as mining. New cryptocurrency tokens are frequently created in this manner. Cryptocurrency pairs are assets that can be exchanged for one another on a cryptocurrency exchange. There are two key reasons for investors to understand trading pairs: some cryptocurrencies can only be purchased with other cryptocurrencies, and understanding crypto trading pairs allows experienced crypto investors to profit on price disparities between markets. While some crypto exchanges do not offer trading pairs between cryptocurrencies and fiat currencies like the US dollar (USD), others, such as Gemini, Coinbase, Binance, and Kraken, do. #Defi exponential growthDeFi trading assets account for 29.94% of the total crypto market 24-hour volume, with a total volume of $31.04 billion, it has a market capitalization of 2T US dollars, perhaps now too big to fail. source: https://www.tradingview.com/markets/cryptocurrencies/global-charts/ The overall volume of all stable coins (part of DeFi) is now $69.37 billion, accounting for 66.91 percent of the total 24-hour volume of the cryptocurrency market. Raoul Pal, the CEO of Real Vision and a former Goldman Sachs hedge fund manager, believes that the crypto market valuation might expand 100-fold by the end of this decade. Moving money into and out from DeFi coins isn't most of the time possible with all trading pairs. For instance, it is impossible to exchange XRP for AAVE on decentralised exchanges like Binance, however it is possible to perform a swap using other platforms like changenow or changelly which have similar rates. However, these rates are subject to fees, for instance if we were to swap XRP and AAVE via ETH we could get an additional 3% in AAVE. Issues with decentralised exchanges like BinanceOn decentralised exchanges, a base currency has been formed as a common trading pair. Before trading on crypto-only exchanges, investors must have one of these pairs. In most situations, you may buy the most popular cryptocurrencies, such as BTC, ETH, BNB, USDT, and so on. Unfortunately, the issue with available crypto trading pairs is caused by a lack of liquidity on decentralised or decentralised exchanges, as well as a lack of blockchain connectivity. This means that even the largest centralised exchange, Binance (with an average daily volume of 2 billion dollars and over 1.4 million transactions per second), is unable to maintain sufficient liquidity for all potential pairs.
For example, AAVE (known for its non-custodial protocol) will be able to be swapped or traded for CRV (a decentralised exchange and automated market maker protocol). This means that crypto investors may need to sell AAVE to obtain ETH, then use ETH to purchase CRV. Going through USDT as a typical method, on the other hand, may not be the cheapest or most efficient alternative. Furthermore, not all cryptocurrencies are available for purchase in fiat currency. However, there is a new free online tool called Swap Cryptos, a new free online tool, that allows investors to determine the best and most efficient way to swap any cryptocurrency at any time. Lack of competitionIf you've ever tried to sell Bitcoin, convert it to dollars, and then deposit those dollars back into your bank account to lock in your winnings, you'll see that Coinbase takes $20, $50, $100, or more depending on the transaction amount! Changelly, ShapeShift, and AirSwap are just a handful of the notable platforms that have launched in the recent several years. Most of these platforms charge at least 2% in fees while only being able to support a small number of pairs. Changelly, for example, currently has roughly 250 pairings. For the DIY investors with a Binance account, Swap Cryptos can be a good alternative. The tool analyses over 6.2 million crypto pairs, is a free online application that makes researching the Binance exchange simple. The beta version of the interface will be released in December 2021, and it will run on donations. [link] [comments] |
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