In 2021, the price of the first cryptocurrency rose to $42,000, so many investors want to know how to perform cryptocurrency conversions. We will give you some tips on how to do it best.
Don’t use a direct exchange
In the case of direct exchange, a private person acts as a counterparty. For example, your friend or colleague, who also knows how to convert Bitcoin to Litecoin, offers you to exchange cryptocurrency at a favorable rate. There are quite a lot of such offers on specialized sites and forums.
However, non of them guarantees that the counterparty will not disappear with the money received. This option is only suitable if you fully trust the person.
Compare exchange rates on different platforms
To get the most out of the exchange, pay attention to the exchange rate. The range of prices can be quite impressive: in the summer, the difference in the rate of ethereum in various exchangers was up to $15. With large transactions, this difference turns into a significant amount.
The decentralized Godex platform’s algorithms analyze the market situation and offer you the most profitable option.
Always check the wallet address
Be careful when entering the details of the wallet to which you are going to send cryptocurrency. Not all services copy the address of their wallets to the clipboard, so be sure to check if you entered everything correctly. One wrong digit and your funds will go nowhere.
Count the benefits including commission
Most cryptocurrency exchanges charge fees for the transaction, deposit, or withdrawal of fiat. In some cases, fees reach 8%, although, for the most part, the commission does not exceed 1%. Some sites charge additional and hidden fees. Choose exchanges with clear terms of cooperation. Godex.io is one of them.
Don’t make hasty decisions
If you are not a professional trader, you should not constantly monitor the rates of cryptocurrencies once you bought one. Endlessly calculating how much you would earn if you waited or hurried up harms. The rate may rollback, while you can’t buy new nerves.
In 2009, the Norwegian Christopher Koch bought bitcoins for $24 and happily forgot about them. In 2013, he found out the rate of BTC increased, remembered the password for his wallet, and became the owner of 886 thousand US dollars.
Don’t forget about privacy
A vast majority of exchanges require you to pass the KYC procedure. In other words, you will have to send copies of your documents, as well as a photo with your passport in hand. If you are serious about becoming a trader, then most likely you cannot do without it. But if you just want to hold BTC, LTC, or any other cryptocurrency, then you absolutely don’t have to reveal your identity.
Important to note is that many centralized exchanges are frequently hacked. So keeping your cryptocurrency in this way is not a good idea. Besides money, hackers often steal clients’ confidential data, so be aware.
You don’t need to share your personal information to use the Godex platform. Exchanging cryptocurrencies occurs literally in a matter of minutes.
Following these simple tips, you can convert Bitcoin to Litecoin in an easy, fast, and profitable way. If you do everything correctly, then you will never become a victim of scammers, or pay extra commission to your counterparty.