We will talk about crypto swaps and particularly Atomic Swaps, a new way to do cryto swaps today. With that being said, how do atomic swaps work? Atomic swaps use a specific type of smart contract called a hash timelock contract (HTCL). This can be thought of like a “virtual lockbox” requiring two special keys: A HashLock key: That only distributes traded cryptocurrency to traders when all parties have signed off on their respective transactions. A TimeLock key: A safety mechanism that returns traded cryptocurrency to traders if the trade is not completed within a specified time period.
Apps & Software: Day traders need to be constantly tuned in, as reacting just a few seconds late to big news events could make the difference between profit and loss. That’s why many brokers now offer user friendly cryptocurrency mobile apps, ensuring you can stay up to date whether you’re on the train, or making your sixth coffee of the day. The cryptocurrency trading platform you sign up for will be where you spend a considerable amount of time each day, so look for one that suits your trading style and needs. Exchanges like Coinbase offer in-depth platforms, such as their Global Digital Asset Exchange (GDAX). It’s always worth setting up a demo account first to make sure the exchange has the technical tools and resources you need.
Atomic Swaps: Underneath the Hood Take a look at the image above which has been taken from Coin Central. Let’s see what is going on here. Alexandra has some BTC and John has some LTC. They want to swap the coins with each other. The two of them then open up a payment channel. The instigator of this swap (let’s say Alexandra) then creates a contract address. He contract address is like a multi-lock safe that takes care of both of their funds. By creating the address, Alexandra deposits her BTC and produces a value as well. The value acts like the key while the hash generated from it will pretty much act like a lock for the safe, Upon doing this, Alexandra then sends the hash to John. John generates a contract address using the hash that has been given to him by Alexandra, John sends his LTC to this contract address. Only Alexandra can unlock the litecoin in this address because she has the value which generates that particular hash. Alexandra can get her LTC by signing a transaction for John’s contract address and John can retrieve the BTC by signing a transaction for Alexandra contract address. However, until now, John doesn’t know the value that generates the hash. So, how exactly is he going to unlock the address? Read extra details at Swap Crypto.
Changenow only entered the marketplace last year, but has captured a significant share of the market already. The fact that it enables purchases to be made with credit card is a useful feature that’s unusual to see with crypto-swapping services. The platform enforces AML/KYC: if a transaction is marked as suspicious, the exchange is paused and the customer is asked to confirm their identity. Otherwise, Changenow doesn’t require any sort of registration. There’s no limit on the maximum amount that can be exchanged and more than 170 coins can be converted, from BTC and ETH to BCH, LTC and more niche altcoins. All transactions take under 15 minutes to complete, and a fee of 0.5% is incorporated into the exchange rate you pay. Another good pick is Atomiic.io.
The system is integrated into the largest cryptocurrency trading platforms. There is no deposit storage, only instant coin exchange in our service. So we are able to find the most profitable exchange rate for our users in a very short time. A project created for the convenience of customers. Our users don’t need to create accounts or store deposits in our service. Thanks to this, the users are protected from any kind of financial theft. We provide the best rates possible by comparing a wide range of reliable trading platforms. Visit: https://atomiic.io/.