{"id":63300,"date":"2020-12-03T21:17:41","date_gmt":"2020-12-03T21:17:41","guid":{"rendered":"https:\/\/www2019.dash.org\/?p=63300"},"modified":"2021-09-18T11:35:54","modified_gmt":"2021-09-18T11:35:54","slug":"swaps-are-understanding-the-power-purpose-of-swaps","status":"publish","type":"post","link":"https:\/\/wp.dash.org\/news\/swaps-are-understanding-the-power-purpose-of-swaps\/","title":{"rendered":"Swaps Are\u2026 ? Understanding the Power & Purpose of Swaps"},"content":{"rendered":"
As you know, when purchasing a good or service for cash, you are swapping cash for your desired item or service. Such as the name implies, a \u201cSwap\u201d most often means to \u2018exchange one item or service of value, for another (or many) item or service of value (of equivalent value)\u2019. Similarly, in cryptocurrency, a \u201cSwap\u201d refers to exchanging one cryptocurrency you hold for the equivalent value of another cryptocurrency.<\/p>\n
To complete a Swap, most likely you will use a (normally centralized) service. This is similar to a trade, with the primary difference being that zero fiat currency is involved. Instead, the trade is of cryptocurrencies. During a Swap, you pay with an alternative cryptocurrency different (other) than the crypto you will purchase.<\/p>\n
When you purchase a cryptocurrency through a trade (whether on an Exchange or through a Broker), you can pay for your cryptocurrency purchase with a \u201clocal\u201d government-issued currency for a particular cryptocurrency (Example: USD, EUR, JPY, etc.).<\/p>\n
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Example and Description: When you have 1 Bitcoin (BTC), and would like Dash<\/i> (DASH), one option you can exercise is to visit a Dash FastPass<\/i> partner (like Liquid<\/i>).<\/p>\n
The steps that follow will illustrate how-to swap your Bitcoin for Dash<\/i>, without having to take multiple steps of selling your Bitcoin for fiat.\u00a0 Then, you would purchase Dash<\/i> with the fiat received for your Bitcoin. Every transaction carries fees, so Swapping helps reduce your cost to switch over to another currency.<\/p>\nStep-by-Step: How to Conduct a Swap Transaction<\/h3>\n
To conduct a Swap transaction, we will utilize the Liquid<\/i> Swap service to guide us and make it simple.<\/h5>\n
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Step 1<\/b> is to Sign-up at Liquid<\/i>.\u00a0 If you already have an account, continue to Step 2.<\/p>\n <\/p>\n Step 2:<\/b> If you have already signed up, and have successfully completed the Know Your Customer (\u201cKYC\u201d) process<\/i>, <\/b>click on this link<\/b><\/a> <\/b>for Liquid<\/i>\u2019s Buy and Swap dashboard.<\/p>\n <\/p>\n Step 3: <\/b>Please be signed-in to your Liquid <\/i>account (look to view the page as shown in the image below).\u00a0 Then, click on the Swap tab<\/i> on the Buy and Swap dashboard.<\/p>\n <\/p>\n Step 4<\/b>: If you have cryptocurrency outside Liquid, please click on this link<\/b><\/a> to make a Deposit.\u00a0 <\/b>Locate the first dropdown list, shown next to the \u201cExchange\u201d field.\u00a0 Select the cryptocurrency you currently have (that you are looking to Swap).\u00a0 In the second dropdown list (next to the \u201cReceive\u201d field), select the cryptocurrency you want to receive.<\/p>\n Example: For this step-by-step, we use Litecoin (LTC) as the cryptocurrency we would like to Swap for Dash<\/i>.<\/p>\n <\/p>\n <\/p>\n Step 5:<\/b> In the \u201cExchange\u201d\u00a0 text field, first enter the amount of LTC (Litecoin) you would like to Swap for Dash<\/i>.\u00a0 The \u201cReceive\u201d field, and the \u201cRate\u201d amount in between the two fields, will auto-update (depending on the number you enter in the \u201cExchange\u201d field).<\/p>\n Example: We will choose to exchange 5 LTC<\/i>, and the Platform will provide us 3.090 Dash<\/i> for the LTC.<\/p>\n <\/p>\n <\/p>\n Statistically, the number of people in the world growing the BlockChain community and cryptocurrencies markets is small but growing very rapidly. So, if you have made it this far, consider yourself a Pioneer. Our entire Dash<\/i> Team is committed to providing you with the best support in the world, as you adopt the more equitable financial system of cryptocurrencies.<\/p>\n If you have any stress or questions around these steps to Spot Trade and Swap, we invite you to get them answered today, 24\/7 by visiting our remarkable Learning Resources portal: <\/b>https:\/\/www.dash.org\/learning-resources\/<\/b><\/a>.\u00a0<\/b><\/p>\n\n