What is Swap Exchange?
Swap exchange is the transaction of exchanging and converting cryptocurrencies running on different blockchain networks. The decentralized structure of cryptocurrency platforms requires investors to use a swap exchange for swapping. As the number of cryptocurrencies and coin markets is increasing day by day, the importance of swap transactions is also increasing.
These transactions can be carried out in an extremely practical and fast way thanks to the reliable and independent structure of the blockchain system. At the same time, the DeFi structure of the markets enables swaps to be peer-to-peer (P2P). Many platforms for performing swap exchanges are available.
Platforms such as Pancakeswap, Uniswap, Quickswap, and Sushiswap are among the options standing out with their large exchange volumes and reliable structures.
Pancakeswap is a decentralized exchange where BEP-20 cryptocurrency tokens can be swapped. Although the exchange uses an automated market maker model and trades digital assets, it does not have an order book where your orders are matched with different traders. On this exchange, you execute transactions against a pool of liquidity. Liquidity pools consist of the funds of investors transacting on the stock exchange. In return for depositing funds into the pool, LP (Liquidity Provider) tokens are obtained. These tokens are used for transactions on the market. In addition to trading BEP-20 tokens on the Pancakeswap, an opportunity to earn rewards by adding more liquidity is available. Farming and staking opportunities with obtained LP tokens are also possible. In Pancakeswap, the governance token of the exchange is CAKE.
How to Buy CAKE?
CAKE can be purchased through various cryptocurrency platforms. You must first need to have an account on the platforms where you can exchange CAKE tokens. Once opening an account, the deposit must be made to the virtual wallet. A CAKE buy order can be executed on the balance. At the same time, Swap Exchange transaction with different digital assets is possible. You can execute these transactions on the PancakeSwap exchange using an automated market-maker model.
Another way to get CAKE is to stake LP tokens. A wallet is needed to benefit from staking. Your digital assets are locked in your wallet for a certain period of this transaction. After choosing the amount to be staked and confirming the transaction, you can start earning CAKE.
Uniswap is one of the decentralized exchanges where tokens in the decentralized finance system are traded. Built on Ethereum, Uniswap acts as an automated liquidity protocol. This protocol was implemented in 2018 by Hayden Adams and the system is open-source software.
Users do not need any order book or intermediaries to place buy and sell orders on the exchange, which enables them to complete transactions much more easily and allows users to achieve high efficiency in transfers. The listing process is not available on Uniswap. ERC-20 tokens can be provided to investors to benefit from the liquidity pool. The exchange’s native token, UNI grants governance rights to its holders. In this case, investors have the right to vote on the planned changes to the protocol.
How to Buy UNI?
To buy UNI (Uniswap), having an account on the platforms where the tokens are exchanged is essential. Another thing you need for placing a buy order on coins listed on many different platforms is your wallet and the balance in it. Using the currencies supported by the exchange you have in your wallet or by converting your digital assets, “buy” transactions are possible. Exchanges offer different trading pairs for this transaction. Therefore, looking at the trading pairs offered and selecting the ideal one for personal use when choosing an exchange is essential.
Another important point in purchasing UNI is whether Uniswap has been used before or not. Traders, previously using Uniswap, have the right to request tokens by connecting their wallets. After requesting, confirmation of the transaction from the wallet is sufficient for the tokens to transfer.
Quickswap is a platform for decentralized exchange transactions. Founded by Nick Mudge and Sameep Singhania, Quickswap uses the automated market maker model for its users to execute swaps. The order book is not available because users execute their transactions through liquidity pools.
Quickswap was forked from Uniswap. However, there are important differences between the two platforms. Membership is not needed to trade on a system built on the Polygon blockchain network. All that is needed to trade on the exchange is a wallet that can be connected to the platform and MATIC for transaction fees. At the same time, smart contracts in the system are implemented by the Ethereum Virtual Machine. Uniswap codes are utilized to ensure a high level of security and reliability of the system.
How to Buy MATIC?
Tradable on decentralized exchanges, MATIC is a scaling platform providing fast and reliable transactions for off-chain smart contracts. To buy MATIC, you must first have an account on the exchanges where the token is listed or have a compatible wallet. The deposit should then be made to the wallet depending on the offered features and compatibility with the platform you wish to transact on. The balance transaction can be in quite different options. However, you can also trade your digital assets with trading pairs that the exchange is compatible with.
Another way to get MATIC is staking. You can earn rewards by staking your coins. You can then take the opportunity to increase your staking coin balance in your wallet.
Sushiswap is another decentralized exchange using the automated market-maker model. Therefore, there is no order book in the system. Instead of an order book, the trading transactions are executed through smart contracts. Compatible with the Ethereum blockchain network, the exchange is one of the most popular decentralized applications in this context.
Although the platform is based on Uniswap code, there are important differences. Managing to attract investors’ attention in a short time thanks to the advantages it provides, the exchange also offers liquidity providers the opportunity to earn rewards. With the NFT platform extension announced in 2021, Sushiswap aims to minimize various issues such as high transaction fees. The native token of the platform is SUSHI. The token offers holders a portion of the fee paid to the protocol and governance rights.
How to buy SUSHI?
The SUSHI token can be bought on various decentralized exchanges. You need to open an account or connect your wallet, depending on the compatibility of the exchange. You can then trade by using the balance in your wallet and digital assets that are eligible for the trading pairs in the system.
Another method of obtaining SUSHI is also available. Sushiswap’s automated market maker model allows liquidity providers to earn tokens by staking. Unlike Uniswap, the platform converts 0.05 percent to SUSHI in addition to 0.25 percent. After this conversion, liquidity providers receive tokens based on their trading volume.
You can easily find answers to all your questions about the coin market on Felixo Exchange. Carry out your transactions at any time by downloading Felixo Exchange!