Since it all began in 2009 – the cryptocurrency market has been an exciting rollercoaster ride. It goes up and goes down, making some richer and some – significantly poorer overnight.
You can hop in and hope for the best, or you can make sure that the straps are holding before getting in.
Is it possible to reduce volatility when investing or trading? Enter the fixed-rate exchange.
Fixed-rate exchanges and where to find them
A fixed exchange rate is one that cannot alter during the transaction. That means that the user receives strictly the amount displayed before the transaction started, regardles of any changes in the market. It is a very attractive feature for traders, yet it could be risky for exchange platforms themselves. Therefore, exchanges that provide fixed-rate exchanges – can have higher commissions.
When choosing an exchange platform, a fixed rate is preferred, but don’t forget to consider other factors:
- Exchange platforms age and reputation. It is a good idea to google its history. Has it been hacked? How does it solve any occurring crises (if there were any)
- The number of available cryptocurrencies. You don’t want to look for a new exchange service because it doesn’t list the coin of your interest,
- Check if the exchange is custodial or not. Keeping funds inside the service is an additional risk.
All Exchange platforms differ, and each user has his/her own preferences. So, in order to invest like a pro, the first thing you need is to have useful and comfortable tools.
To find an exchange that suits you – you can use aggregators. They list prices, fees, and other details so that you compare the offers and choose, but not all of them indicate which service supports the fixed rates. For example, you can find fixed rates at Coinswitch. Pick a crypto pair and press the exchange button. You will see a list of offers from different exchanges. Each offer is labeled either as current or fixed. Fixed rates are labeled with the number of minutes that the rate will be fixed for. You can make the transaction straight from Coinswitch, but don’t forget that it takes an additional commission, and the rate is slightly higher than one from the chosen exchange platform’s website.
If you don’t want to look for a new exchange every time, here is a short list of services that support fixed-rate exchanges.
Choosing a fixed-rate exchange service
Changelly is a well-known instant crypto exchange platform. The service calculates the exchange rate and the commission using a multi-factor algorithm. It includes the market’s current situation, the platform’s risk by locking the rate, etc. That means when the market is stable, the commission can match the floating rate exchanges.
Changelly also has a mobile app that allows users to freeze the transaction rate on-the-go.
You can find the Fixed-rate button on the top of the exchange window. Changelly refreshes the guaranteed rate every 30 seconds. The user has 15 minutes to complete the transaction after it is created.
Changelly has better fixed-rates comparing with other platforms.
You have 30 seconds to accept the current price. However, the service warns users if the rate has changed before proceeding to send the funds.
FixedFloat freezes the rate for 10 minutes and charges a fixed 1% commission for such types of exchanges. When opting for a fixed rate, a user gets the price displayed at the point of initiating a transaction.
The service has an option of lightning-fast transactions. Just click the “try lightning!” underneath the amount field.
The commission is not included in the rate displayed on the screen. So you have to be ready to receive less than was initially indicated.
ChangeNOW offers its users to choose between the classic floating rate or a fixed-rate exchange.
The service calculates all the fees from the very beginning and freezes the rate for the next 15 minutes.
The commission for the fixed-rate exchanges can exceed 1%, which is pretty high in comparison with other services mentioned in this article.
Changehero is another instant exchange service that looks pretty similar to ChangeNOW. Like ChangeNOW, it offers to freeze the rate for 15 minutes in exchange for a commission of around 1%.
It is always a win some – lose some situation in the crypto market, but if you consider all pros and cons and weigh your decisions carefully – you can make your winning part a little bigger.