Which one is cheaper, exchange flash swap or currency trading? What's the difference?

In order to facilitate user transactions, flash exchange has been launched, which is a transaction method for quickly exchanging cryptocurrency. Usually, the instant exchange function provided by the exchange or the decentralized trading platform is used for exchange. It has been favored because of its speed and convenience. Loved by many investors. It is also easy to operate and suitable for novice investors. Coin-to-crypto trading refers to a trading method through pending orders and matching transactions on the exchange, with more flexible trading strategies and options. For investors, choosing a transaction depends not only on the transaction speed, but also on the transaction cost. So which one is cheaper, exchange flash swap or currency-to-crypto transaction? This is an issue that investors are very concerned about. At present, currency trading is more cost-effective. The editor will explain it in detail below.

Which is cheaper, exchange flash swap or currency trading?

Roughly speaking, currency-to-crypto transactions are more cost-effective, but the degree to which flash swaps and currency-to-crypto transactions are more cost-effective also depends on specific trading needs, market conditions, and personal risk preferences.

Flash swaps may involve smart contract execution fees, but they are usually relatively low. The fees for flash swaps may include transaction fees, network transfer fees, etc. The specific fees depend on the settings of the exchange or DEX platform. , but may vary by exchange.

Coin-to-crypto transaction fees usually include transaction fees and possible network transfer fees (depending on whether the exchange supports asset withdrawals). Transaction fees are based on the settings of the exchange and the user’s trading behavior (such as transaction Rates may vary depending on volume, VIP level, etc.).

Flash swap is suitable for scenarios that require instant execution and liquidity provision, such as lending and trading on decentralized finance (DeFi) platforms. Spot buying and selling is suitable for general digital asset transactions, especially for long-term Hold or trade large amounts.

What is the difference between exchange flash swap and currency trading?

Flash swaps and currency-to-crypto transactions on exchanges are two different types of transactions conducted on exchange platforms. They have some differences, mainly reflected in transaction methods, transaction speed, price execution methods and handling fees. Etc.:

1. Trading method

Flash exchange is a trading method for quickly exchanging cryptocurrency, usually provided by an exchange or a decentralized trading platform (DEX). Users can directly select the asset pair to be exchanged on the platform, and the system will immediately execute the exchange based on the current market price and liquidity, without waiting for the order to be completed.

Coin-to-crypto trading refers to the trading method carried out on the exchange through pending orders and matching transactions. Users can choose market orders or limit orders to trade. After placing the order, they wait for the market price to reach the set conditions before the transaction is completed.

2. Transaction speed

Flash swaps are usually completed instantly because the transaction is executed immediately without waiting for the order to be matched.

The speed of currency trading depends on the market liquidity and pending orders. It may take a long time to wait for the order to be completed.

3. Price execution method

The price execution method of flash swap is to execute the transaction according to the current market price and liquidity, so the price may have certain slippage.

You can choose a limit order or a market order for currency trading. A limit order can specify a specific transaction price, while a market order will be executed at the current market price, but it may also be affected by slippage.

4. Handling fee

The handling fee for flash swap may include the exchange's transaction fee and network transfer fee, etc. The specific fee depends on the settings of the exchange or DEX platform.

The handling fees for currency transactions usually include transaction fees and possible network transfer fees (depending on whether the exchange supports asset withdrawals).

The above is the detailed content of Which one is cheaper, exchange flash swap or currency trading? What's the difference?. For more information, please follow other related articles on the PHP Chinese website!