This is a guest post about wallet-to-wallet trading written by John Ryan. John Ryan has been a cryptocurrency writer for 4 years. His main focus is new tendencies and analysis in the cryptocurrency world. You can find John’s other articles at BitcoinBestBuy.
If you are here reading this article, you are familiar with cryptocurrencies and have already tried buying and selling them. Most likely, you’ve been using some popular trading platform like Binance, KuCoin, Bittrex, Kraken or any other. There are hundreds of them on the net. Some of them look more user-friendly, others provide better services and a wider range of trading pairs. However, some users find them clumsy and too complicated.
Maybe you are one of them. Did you ever think that the sign-up process on the trading platforms is rather complicated, and they ask you to give out too much personal information? Taking into consideration the fact that their level of security might on occasion leave a lot to be desired, I agree with you. Moreover, you need to wrestle with their user interface, with lots of functions, tabs and sections. Oftentimes, you only need to sell one crypto and buy another one. Is there a way to do it in a simple manner?
Here, I will tell you about the exchanges where you can trade cryptos with just a couple of mouse clicks, without providing your photo and ID scan. They are quick and handy, hackers do not pay much attention to these services as they cannot steal anything there, and even newcomers can operate them easily. Let’s see what these instant exchanges are, and try to find out which one is the best.
What Is Wallet-to-Wallet Trading?
First of all, we have to think about one question — if we do not want classic trading platforms, what can be an alternative? Hackers are a huge problem for crypto exchanges because people have to put their tokens in their account and only then trade them. This is when cyber criminals can steal money. So, we need the platform where users do not have to transfer their assets from wallets to the vulnerable exchange accounts.
We also need a system where we have a simple and understandable design, with a minimum of buttons and functions – only the necessary ones. What else? The traditional crypto marketplaces usually have a long, albeit limited, list of supported tokens and pairs you can trade. This can be really inconvenient, especially when you need to swap some rare currencies. Even if the service works with them, it might happen that they can be traded only with BTC, ETH, etc., but not with each other. We need a place where we can buy and sell cryptos freely.
Congratulations, wallet-to-wallet trading has been invented! The system with no extra intricacies, which can be operated even by a child (some might argue that at least). Such platforms do not need your full name and physical address, you will not have to send them your driver’s license or passport, link your bank account, or anything else. The KYC and AML requirements are minimal, as well as their user interface. But the most important thing is that you do not take your money out of your secured crypto wallet and put it on some insecure and hackable exchange account.
Best Wallet-to-Wallet Trading Platforms
Such wallet-to-wallet trading platforms connect users with each other or with the major marketplaces, eliminating the necessity of registering there. They work as intermediaries, doing all the work instead of you, thus from your side, the process of exchanging one crypto to another looks very simple and fast. Let’s see why they are better:
- the exchange rates here are significantly lower because wallet-to-wallet platforms are connected to multiple exchanges and they choose the most profitable variant for you;
- as well as with the exchange rates, you’ll have the lowest fees possible;
- again, no one holds your money in an escrow, and you don’t have to create several accounts and top up your balance somewhere. You send your tokens directly from your hardware or any other wallet, and receive coin to your own wallet, right where you store the currency. It is much faster and easier.
Despite the simplicity, the websites for the instant exchanges are highly protected from any malicious activity. You’ll feel safe and sound with two-factor authentication and anti-DDoS attack protection. Some of them allow credit cards, which makes such services very convenient for beginners. I think it is time to take a closer look at such exchanges.
Changelly is much simpler. It was launched in 2015, with a head office in Malta, and provides instant and anonymous services. This exchange also includes the trading bot, but the principle is a little bit different. The program is integrated with the most popular and largest marketplaces, like Binance or Bittrex. Below, I describe a few things I like with this wallet-to-wallet trading platform.
- it has very competitive fees when exchanging altcoins to altcoins. The fixed 0.5% is not the lowest commission I’ve ever seen, but keeping in mind that you can do multiple transactions within one platform, Changelly fees seem very attractive;
- you can choose any combination of crypto coins. I’ve mentioned the limited number of the trading pairs on the traditional marketplaces before. What does it mean? Imagine that you have, say, ARK, and need some ANT (Aragon coins). Not all crypto exchanges trade this pair, so you’ll have to either look for one more trading service, or make several transactions to get what you want. This problem disappears when using Changelly because they search for the necessary asset and let you buy it with what you can spend;
- this platform operates 140+ altcoins and you can also use fiat money from your credit card;
- it is built for users with minimal experience trading cryptos. Its interface is coherent and easy to understand. If you still have problems, the company has a helpful customer support service;
- on Changelly, you only need to indicate what you have, as well as what and how much you want to get. That’s it. Click the button, give your wallet address and wait half an hour for your coins to arrive;
- you can do it via its web version, mobile application or your wallet. This wallet-to-wallet exchange partners with the most widely used digital wallets, like Trezor, MyEtherWallet, Ledger, Exodus, etc. They’ve added their API and a payment widget, which you can use on external websites.
Radar Relay wallet-to-wallet trading platform is a peer-to-peer service, which means that it lets users trade directly with each other, avoiding all intermediaries. Using Radar Relay, they just have to post their order, and the system will find a match. This algorithm does not involve any trust or custody, making the transactions much cheaper and quicker. While the platform finds the match for your order, the 0x protocol makes the direct wallet-to-wallet transactions possible.
This instant exchange was designed by American crypto experts led by Alain Curtis in 2017. The main purpose was to help those who want to trade currencies based on the Ethereum blockchain (ERC-20 tokens) without intermediaries, directly from their hardware wallets. The system is very safe, as it never touches your assets, but only finds you a matching trader and then you finalize the deal with each other. So, regardless of what happens to the website or app, you won’t lose your money and the transaction will take place.
So, here is how it works:
- open the app;
- link your wallet;
- turn your ETH to WETH, or wrap it;
- then let the application trade your coins;
- then choose your pair and place an order.
There are over 190 currencies and about 350 pairs supported by Radar Relay. As for the wallets, you’ll need a Web3 compatible one.
Radar Relay Advantages
Among other advantages of this trading service, I would name:
- its high functionality, which includes the ability to view various charts and order books, a bot for automated trading and smart contracts to enable instant transactions and continuous trading;
- helpful customer support with a detailed and understandable FAQ section;
- Radar Relay does not charge you any fees, the only commission you pay is the cost of gas for the operations within the Ethereum blockchain, which is very low;
- it is backed by several reliable blockchain investment groups. This provides an additional guarantee that this company and its trading platform will work properly.
However, there are the minuses, too. You cannot trade any coins except ERC-20 ones. The number of supported wallets is limited, too. You cannot add the currency you want to the list, and the liquidity of some pairs may be lower than that on the traditional exchanges. Moreover, being almost fee-free and having all those functions and features, Radar Relay still uses trading pairs, which means that the list of options is limited.
Kyber Network (KyberSwap)
Kyber Network is rather different from the abovementioned exchanges. It has its own token, Kyber Network Crystal, or KNC, which is used as a reserve. The network charges KNC as a fee for every transaction, and pays them to third parties who facilitate the system’s work. Just like Radar Relay, KyberSwap employs the 0x Protocol to enable the transactions on the wallet-to-wallet trading platform.
- say you need to pay ETH to a merchant, but you only have OMG;
- you go to KyberSwap, ask it to convert your OMG to ETH, and then send it to a vendor;
- when all is done, the receiver will see the desired currency in his wallet as if it came directly from you.
Unfortunately, the list of supported tokens is very limited, as the network works only with the Ethereum-based currencies and Web3 compatible wallets. There are plans to include cross-chain trading in 2019, though.
ShapeShift is another instant exchange with a simple and user-friendly interface. When the tokens you want to give and receive are chosen, the system creates a special deposit address for you. From that, you can send your coins. Then you’ll have to wait some time for the desired coins to arrive to your wallet, that’s it. The company does not take any commissions for their own profit, you’ll have to pay only the miner fees, which vary depending on the currency you use.
Unfortunately, this trading platform works with a limited number of cryptocurrencies, as of now, May 2019, there are only 44 tokens available. Its security could probably be improved, seeing as it was hacked in 2016. This vulnerability appears when the money goes to deposit, where it is an easier target for thefts. On the other hand, on ShapeShift, you do not have to create any additional accounts, go through any verification, provide passwords, etc. And the company returns your money if the deal fails. So, I consider this one a comparatively safe and very convenient wallet-to-wallet trading platform.
Faa.st intergrates with the most popular crypto wallets, like Trezor, Ledger, Trust Wallet, MetaMask, etc. You can trade Bitcoin and Ethereum-based altcoins here, 130+ assets in general. You can create your portfolio, just connect your wallet and see the charts and price movements of your cryptos. The user interface of the Faa.st website is easy to read and operate, it works pretty much the same way as Changelly. All you need to do is choose what tokens you want to spend and receive. The process is almost instant.
The trading platform claims that it never touches your money, so even if they are hacked, you won’t lose anything. The fees are stable, 0.5%. You do not give out any of your personal information. Faa.st only works with your wallet and when it is connected to the system, this is enough to start trading. It supports multiple simultaneous deals and cross-chain trading.
Wallet-to-Wallet Trading – Concluding Thoughts
In conclusion, I would like to say that I personally cannot say which wallet-to-wallet trading platform that is the best. They all have their advantages and disadvantages, and do their own job. Having read this review, you’ll be able to make your own decision based on your needs and experience. What I can say about all of them is that they are gaining in popularity, and lots of new users join such platforms. The reasons are obvious — they are the best choice when you want to stay anonymous and trade freely, without any third parties and risks.
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