If you want to exchange DOGE to BTC using a cryptocurrency converter on the web, there are some things that you need to take into account first.
In this article, we’ll explore some of the basic tips and tricks for using a converter when trading Bitcoin with Doge and vice versa.
Understand How Converters Work
A converter will help you exchange cryptocurrencies simply and effectively. The first rule to making BTC/DOGE conversions is to understand how a typical converter operates.
If they are part of a decentralized platform, all you have to do is leave your wallet address of the crypto you’re selling to make a deposit and the address where your buying crypto will be sent. The converter doesn’t store any of the cryptos, as many centralized exchanges do. Instead, it makes the conversion on-the-fly.
Most importantly, decentralized converters don’t require you to open an account. In other words, all transactions that take place on it are completely anonymous.
Pay Attention to the Fees
Every platform that offers you to exchange your DOGE to BTC and the other way around will charge a fee for that service. It’s up to you to find a platform that has low fees yet offers a great service.
Since you’re trading two cryptocurrencies, you can pick a decentralized platform, such as Godex, as DEXs are overall more affordable than centralized exchanges. That’s because no central authorities are governing the transaction. Instead, everything is conducted on a peer-to-peer basis.
Check Minimum and Maximum Trading Limits
If you’re new to trading, you might want to pay attention to the trading limits for DOGE and BTC. Simply put, there’s a cap on how much you can trade, and these limits are very strict if you do it on a centralized exchange.
However, DEXs are able to offer better limits. They aren’t regulated, so the trading process isn’t as strict as on centralized exchanges.
Minimum limits are also crucial for crypto trading. Simply put, if the minimum limit is high, you wouldn’t be able to trade as little as you want. Therefore, check the minimum limit before choosing an exchange.
Pay Attention to Volatility
Both DOGE and BTC are volatile, pretty much like most cryptocurrencies. Therefore, when using a converter, make sure you’re doing it in a matter that profits you (or will bring you a profit in the future).
For example, there’s no point buying BTC when it peaks and then starts to lose in value. You want to buy when low and sell when high. However, you also have to take into account the price of DOGE and trade the two cryptos when there’s an opportunity to create long-term profit.
Use Converters That Fix Rates
Volatility may affect you on the long rung, but it can also cause trouble when making single trades. Simply put, the price of BTC or DOGE may change by the time your transaction is processed, and that’s why you could end up with less money than you wanted. Therefore, it’s extremely important to pick converters that freeze rates at the moment you initiate the trade.
Every online cryptocurrency converter comes with a unique set of features, so feel free to explore them.
Most converters don’t only focus on BTC and DOGE. They allow you to trade many other cryptocurrencies and feature hundreds of trading pairs. If you want to obtain new cryptos that you don’t have now and you’re ready to pay for them with one of the cryptos you already own, then decentralized cryptocurrency converters are the best option for you.