It seems like we are right in the middle of another bull market. The Rate of Bitcoin has more than doubled the previous high. Looking at this staggering growth, many investors are wondering how to convert LTC to BTC. If you are interested in this topic, read on to learn some useful tips.
1. Forget about Direct Exchange
This cryptocurrency conversion option is the riskiest of all. In this case, a private person acts as a counterparty, which will be very difficult to find. Such “businessmen” operate in public places (airports, train stations, markets, etc.).
They offer discounts and prices 5% or even 10% lower than market prices. Such exchanges often end in complete loss of funds, and in the best case, you get a piece of paper with a set of symbols that fraudsters passed off as a cold paper wallet.
But how to convert LTC to BTC safely if you still want to use a direct exchange? Perform the exchange only if the counterparty is a person you trust.
2. Check the Rate on different Exchanges
Take your time before making an exchange. It is better to monitor the prices of the cryptocurrency pair you are interested in on various exchanges. It often happens that prices differ, which is especially noticeable in large transactions.
We advise you to use decentralized exchanges like Godex.io. Its algorithms check the market situation and offer you the most favorable conditions.
3. Check your Wallet Address several times
Before sending funds, double-check the recipient’s address. After all, a mistake in one symbol will lead to a complete loss of funds. And most importantly, this transaction can no longer be returned or canceled.
It’s all about the decentralization of blockchain technology which is the foundation for cryptocurrencies. This is a widespread mistake that beginner traders make, so we warn you of it.
4. Take into account the Commission in profit
It is essential to understand that all cryptocurrency exchanges charge a commission for every transaction carried out. And its size may differ on each site. In some cases, fees can go up to 8%, although this is an exception to the rule. The market average is 1%.
It is important to understand that some exchanges may not play an utterly fair game: officially, they can set low commissions but charge hidden fees. Thus, before choosing a platform for an exchange, be sure to check its reputation.
5. Keep Calm
If you are not an intraday trader, you should not monitor the cryptocurrency rate you bought every hour. This will haunt you, and you will not be able to make proper long-term decisions.
Fight your FOMO! Every investor, and not only in the cryptocurrency market, has repeatedly faced this emotion. It significantly interferes with weighing everything carefully and making the right decisions.
6. Maintain Confidentiality
To access the full functionality of the vast majority of centralized cryptocurrency exchanges, you will need to verify your identity. That is, you will need to send copies of your documents, as well as a selfie with your passport in hand. Your documents will be checked for several days, and only after that you will be able to work with the site.
Important to note is that centralized exchanges often fall prey to hackers who hunt not only cryptocurrencies but also confidential user information. So by sending your passport data to the exchange, you run the risk that third parties will get them.
If you want to make fast and, most importantly, anonymous exchange of BTC to LTC, use the Godex.io decentralized exchange.