Ecency Swap is a great feature that gives you the option of instant conversion, but while using it, you should keep some things in mind. Before using any feature, you need to know about its pros and cons otherwise any mistake can end with losses.
Specially when it comes in term of funds conversion, because any mistake can give you financially loss and that is what we dont want. In this post I am providing a little information about #Ecency Swap feature and how to use it in the best possible way.
For all those users who are new with the swap feature let me give you a small brief about this feature and its working. Its a conversion feature where you can instantly or placing limit order can do convert HIVE-HBD and HBD-HIVE. The good thing is that there is no transaction fees.
First of all, when you do a conversion, you don’t get the current market price. Instead, your swap happens at the prices that sellers or buyers have bid. Which means that their might not be liquidity at the current price but available at other prices.
For small amounts, this feature works quite well, but if you want to convert a large amount, you may face a loss. The reason is that in the market, liquidity at the current price is very low.
If you have 100 HBD and want to convert them, the full amount won’t convert at one price. Instead it will be converted at different prices which costs you more expensive.
For example, if the current price is $0.26, your conversion may go up to $0.262 or $0.265, which makes around a 2% loss. That’s why, whenever you do a swap, do keep these things in mind so that you can avoid loss.
These are very necessary to keep in mind in order to avoid losses. Otherwise this feature is very best for small conversions which gives you the current price for conversion.
I hope you find this post interesting and I hope you will like it. If you like the post, please leave feedback in the comments section so that the next one will be even better. Thank you for sticking with me until the end.
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