How do coin conversion platforms work?

tranthidung

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Quote from: NeuroticFish on October 20, 2022, 09:44:44 AM

Well, I suppose one has to learn how the things go on each and every new platform they want to use, especially when it is about money.

Yes, they should but unfortunately people mostly want to complete things very quickly. They usually skip quick educational tour or trading tip notifications before starting. Then they get scammed and have to learn from their own experience together with loss.

Quote from: NeuroticFish on October 20, 2022, 09:44:44 AM

And what if one just picks an available offer? Are they so bad?

They can be taker and pick one of available offers to start trading. It saves their time but maybe a given rate does not suit their interest.

In addition, depends on account and payment method, trading limit can be low to 0.01 BTC. It is explained by a general low trading volume on Bisq exchange too.

Quote from: https://bisq.wiki/Frequently_asked_questions#What_are_trading_limits.3F_How_much_bitcoin_can_I_buy.2Fsell_at_once.3F

What happens if the person buying bitcoin does a chargeback after the bitcoin has been released from the multisig address?

Bisq only supports payment methods for which chargebacks are not easy (e.g., this is why PayPal and credit cards are not supported). But there is still a little chargeback risk with banks. If a bank executes a chargeback after the BTC has been released, there is nothing a mediator or arbitrator can do.

Bisq's goal is to make this scenario as unattractive as possible, using three primary mechanisms:

Account aging requires newly-created fiat payment accounts on Bisq to have lower trade limits, and those limits are increased over time.
Account signing requires higher-risk payment methods to be signed upon verifying the integrity of a trader before account aging kicks in. Until such accounts are signed, buy limits are set to 0.01 BTC.
National currency payment methods which are found to be used for chargebacks are quickly removed.

m2017

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Quote from: NeuroticFish on October 20, 2022, 09:44:44 AM

Quote from: tranthidung on October 20, 2022, 09:37:24 AM

Bisq is good but with Bisq, problem is low trading volume and on truly peer-to-peer trading platforms like Bisq, newbies must never release coin if they don't receive payment from the trade partner.

Bitcoin transactions are irreversible and if you mistakenly release your coin while you don't receive payment already. You will lose your Bitcoin and scammer (your trade partner) will run away. Bisq will not be able to help you to resolve the trade.

Well, I suppose one has to learn how the things go on each and every new platform they want to use, especially when it is about money.

Quote from: tranthidung on October 20, 2022, 09:37:24 AM

Waiting time for a trade partner to start trading with your offer is long (as consequence of low trading volume) and it is another problem on Bisq.

And what if one just picks an available offer? Are they so bad?

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Would have been a better advise for OP to use BestChange platform?

Surprisingly, people on this forum recommend various services for exchanging crypto currency, but for some reason only you remembered BestChange. Moreover, the signatures of this platform can be seen under many posts on the forum. Perhaps I will join recommendation this excanger.

OP, you can use the BestChange exchange service (free Internet-service) to convert BTC to ETH. To do this, just click the green signature under my post (or under the post of another user with exactly the same signature).

You can learn more about BestChange in this thread - https://bitcointalksearch.org/topic/forget-about-exchanger-search-use-bestchange-3309245.

NeuroticFish

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Quote from: tranthidung on October 20, 2022, 09:37:24 AM

Bisq is good but with Bisq, problem is low trading volume and on truly peer-to-peer trading platforms like Bisq, newbies must never release coin if they don't receive payment from the trade partner.

Bitcoin transactions are irreversible and if you mistakenly release your coin while you don't receive payment already. You will lose your Bitcoin and scammer (your trade partner) will run away. Bisq will not be able to help you to resolve the trade.

Well, I suppose one has to learn how the things go on each and every new platform they want to use, especially when it is about money.

Quote from: tranthidung on October 20, 2022, 09:37:24 AM

Waiting time for a trade partner to start trading with your offer is long (as consequence of low trading volume) and it is another problem on Bisq.

And what if one just picks an available offer? Are they so bad?

---
Would have been a better advise for OP to use BestChange platform?

tranthidung

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Quote from: NeuroticFish on October 19, 2022, 09:17:44 AM

From what I know Bisq is one of the most reputed non-KYC (decentralized) exchange. It could be one valid option for you.

Bisq is good but with Bisq, problem is low trading volume and on truly peer-to-peer trading platforms like Bisq, newbies must never release coin if they don't receive payment from the trade partner.

Bitcoin transactions are irreversible and if you mistakenly release your coin while you don't receive payment already. You will lose your Bitcoin and scammer (your trade partner) will run away. Bisq will not be able to help you to resolve the trade.

Waiting time for a trade partner to start trading with your offer is long (as consequence of low trading volume) and it is another problem on Bisq.

libert19

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I use simpleswap which is similar to changenow, usually to/from hive conversations, they tend to have binance account send me the funds. So I guess they use cex for conversations.

Alone055

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Quote from: OrangeV on October 19, 2022, 07:57:35 AM

Hi, yesterday I needed to have some of my BTC ~~swapped~~ converted for ETH. So I wondered what would be the fastest way to do that.....

The fastest and the safest way should be using a centralized exchange like Binance. It shouldn't take long at all if you don't ask for a price way higher than the market price and it is also risk-free. I personally wouldn't experiment new platforms with my funds unless I'm a 100% sure that they are legit. Fees shouldn't be an issue as you would also need to pay a significant amount in on-chain transaction fees even if you are using a decentralized platform.

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Quote from: OrangeV on October 19, 2022, 07:57:35 AM

Hi, yesterday I needed to have some of my BTC ~~swapped~~ converted for ETH. So I wondered what would be the fastest way to do that and I found changenow.io - a coin conversion platform. Basically, without needing to create an account or anything, I just send my BTC to a wallet provided by this platform and it sends me back ETH to the wallet address provided by me.

So I was wondering how does that work. Do they use a centralized exchange like Binance or Coinbase and somehow convert on them in which case they're somewhat of a middleman or do they use some other methods that I'm not aware of?

Thanks.

Edit:
I guess I meant convert not swap. Thanks to tranthidung for pointing that out.

Its called swap but the process is same as using the centralized exchanges but here you may pay more fee than the conventional centralized exchanges. I would still prefer the Exchanges than swapping platform cause expensive also the trade will not be instant since the coins has to arrive to your address since its happening onchain whereas with exchange its just instant if you go for current market price.

Z390

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Chnagenow is scam never ever use that platform again, you got lucky this time just like some until you made a transaction and got nothing in return, you already get the best recommendations from @Doan9269 so have fun. Make sure you disconnect your wallet from any dex after making purchase.

Doan9269

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I would have preferred OP to use the word exchange instead than platforms that perform coin swapps, left to me alone I wouldn't have any reason to go on some platforms that ain't recognized as exchange for swap, moreover swapping in best done on decentralized exchanges like:

https://bisq.network/
https://localcryptos.com/
https://hodlhodl.com/

But it is also best adviced to convert or swap coins from other cryptos to bitcoin and not bitcoin to altcoins, this is a good recommendation to remains safe with low risk.

OrangeV

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Quote from: NeuroticFish on October 19, 2022, 09:17:44 AM

Quote from: OrangeV on October 19, 2022, 09:08:23 AM

Actually, what method / platform would you recommend for converting that wouldn't require KYC.

From what I know Bisq is one of the most reputed non-KYC (decentralized) exchange. It could be one valid option for you.
It's an exchange, not a swapper, but that should not be a big problem, I think.

Thanks for the recommendation. I will look into it!

NeuroticFish

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Quote from: OrangeV on October 19, 2022, 09:08:23 AM

Actually, what method / platform would you recommend for converting that wouldn't require KYC.

From what I know Bisq is one of the most reputed non-KYC (decentralized) exchange. It could be one valid option for you.
It's an exchange, not a swapper, but that should not be a big problem, I think.

OrangeV

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Quote from: tranthidung on October 19, 2022, 08:20:55 AM

ChangeNOW.io has bad reputation in Bitcointalk forum and they have never resolved it completely.

Their representative at the forum: ChangeNOW has lot of negative trust feedback and they have active scam accusations

2,5 BTC ($100K) SCAM Changenow exchange. I did not read details but if you intend to use their service, you should read it.

In addition, what you do is convert your BTC to ETH, not swap. Swap is on decentralized exchanges, with tokens on a same network (same blockchain). Or did you swap WBTC to ETH? Remember WBTC is not Bitcoin, it is only a derivative token.

I converted actual btc not WBTC.

Hmm, interesting stuff. Thanks for providing me with that insight. I personally didn't have any problems with converting my BTC on that platform but I guess I will keep in mind what you told me the next time I need to convert. Actually, what method / platform would you recommend for converting that wouldn't require KYC.

dkbit98

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Quote from: OrangeV on October 19, 2022, 07:57:35 AM

So I was wondering how does that work. Do they use a centralized exchange like Binance or Coinbase and somehow swap on them in which case they're somewhat of a middleman or do they use some other methods that I'm not aware of?

I would never swap Bitcoin for centralized coins like ethereum, and using any website you always have a risk of them holding/freezing your coins, or they could ask you for kyc verification.
Best way is to use atomic swaps with wallets like AtomicDex, with extension wallet Liquality, or by using Bisq decentralized exchange.
I think that Changenow is just using other centralized exchanges and partners that provide liquidity for them, but that usually means you will have to pay higher fees.

tranthidung

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ChangeNOW.io has bad reputation in Bitcointalk forum and they have never resolved it completely.

Their representative at the forum: ChangeNOW has lot of negative trust feedback and they have active scam accusations

2,5 BTC ($100K) SCAM Changenow exchange. I did not read details but if you intend to use their service, you should read it.

In addition, what you do is convert your BTC to ETH, not swap. Swap is on decentralized exchanges, with tokens on a same network (same blockchain). Or did you swap WBTC to ETH? Remember WBTC is not Bitcoin, it is only a derivative token.

OrangeV

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Hi, yesterday I needed to have some of my BTC ~~swapped~~ converted for ETH. So I wondered what would be the fastest way to do that and I found changenow.io - a coin conversion platform. Basically, without needing to create an account or anything, I just send my BTC to a wallet provided by this platform and it sends me back ETH to the wallet address provided by me.

So I was wondering how does that work. Do they use a centralized exchange like Binance or Coinbase and somehow convert on them in which case they're somewhat of a middleman or do they use some other methods that I'm not aware of?

Thanks.

Edit:
I guess I meant convert not swap. Thanks to tranthidung for pointing that out.

Topic: How do coin conversion platforms work? (Read 202 times)