It may be advantageous to exchange one cryptocoin for another rather than buying and selling them.
Perhaps the Cryptocurrency Exchange you have an account with does not handle the
coin you want; or maybe you have accumulated a fair amount of a coin you do not
want to keep but would like more of a different coin. This section explains how
to easily exchange your coins for other coins. It is important to note that all
Cryptocurrency Exchanges will exchange one coin for another in addition to
trading with fiat money as well; exchange only sites are explored here.
A useful example is a situation involving your humble editor, who uses the
Gemini exchange to buy and sell Bitcoin (BTC) with U.S. Dollars (USD). Gemini
only supports BTC and Ethereum (and USD). You can trade between any mix, but
only those three currencies. In order to obtain Litecoin (LTC), for example, an
exchange (or trade) can be made between BTC and LTC after purchasing BTC on
Gemini. Another example is what to do after having acquired quite a bit of
Dogecoin (DOGE) from faucets; in fact much more than wanted. Well, the DOGE can
be exchanged for LTC, which will help to build the balance of that coin.
Since LTC faucets are not that common, DOGE faucets can also be used and
thus acquiring DOGE can be considered the same as acquiring LTC.
Where Can an Exchange Be Made?
Our favorite site for exchanging coins is
ShapeShift. It is quick, easy, and works well. They support around 35 coin
types, so that it is somewhat limiting. The nicest part is no account is
needed... just initiate an exchange, send your coins, get your different coins.
The fee is difficult to determine. No fixed fee is charged as their profit is
made on the spread between what your coin sold for and what you paid for the new
coin. Since coin prices vary widely from moment to moment and exchange to
exchange, the real price to compare to is not determinable. We have found the
exchange rates to be fair.
Other places to exchange coins are Changelly (around 35 coin types also) and
CoinPayments (multi-coin wallet, merchant support, but also coin exchange for 55
different coin types; they tend to be a little expensive for exchanges though).
Another option is trading coins in the chat section of FaucetHub, where two
members agree on an exchange rate and number of coins, then "tip" each other to
complete the trade. Be sure to know your trading partner though.
Coin exchanges can be a great way to build up the value of your favorite coin
while not restricting yourself to initially acquiring that coin. It also
provides a way to acquire some of the less common cryptocurrencies, especially
if you want to speculate on their value. Lastly, it is fun.