What is a cryptocurrency exchange, and, why is it needed?
For most digital currency investors, an exchange is one of the most important vehicles for transacting cryptocurrencies. An exchange, in general, supports trading of currencies or other goods and items of value. A cryptocurrency exchange is an online platform to buy and sell cryptocurrencies.
When it comes to a cryptocurrency exchange, plenty of options are available. Specifically, for SVD Token, it is available on IDEX, COBINHOOD, HitBTC, barterDEX, TIDEX, Token Jar, BEEX. SVD investors can buy and sell SVD, or even get SVD in exchange for another token, on any of these exchanges.
Why list SVD Token on multiple exchanges, and, what are the differences between these exchange platforms?
Not all cryptocurrency exchanges provide options to buy and sell all available and exhaustive list of tokens and cryptocurrencies. Also, even though all functions required for trading might be available in most of the exchanges, each exchange will have its unique way of supporting the trade. SVD Token is listed on multiple exchanges so that our worldwide investors have an access to this diversity.
At a broad level, there are three types of exchanges: centralized, decentralized and hybrid. Conventionally, an exchange accepts orders for buying and selling of cryptocurrencies, matches the orders and supports the exchange of assets involved in these orders.
In cryptocurrency exchanges, the asset exchange always ends up in blockchain transactions — and this part of the exchange functionality is always decentralized. However, an exchange is referred to as Centralized Cryptocurrency Exchange only if most of the other trade related functions are offered through a centrally managed enterprise platform, for e.g. Kraken.
If order book management or order execution is also done through some form of Smart Contracts, which run on the decentralized infrastructure of blockchains, then typically the exchange is referred to as Decentralized Cryptocurrency Exchange, for e.g. EtherDelta.
However, organizations such as Bancor have further innovated the ecosystem to eliminate the need for orders and order book management, and yet still support the exchange trade. At https://www.bancor.network/discover, investors can simply convert a cryptocurrency in return for SVD Token and vice versa.
It must be noted that due to regulatory constraints and to support a variety of requirements, currently there are no true decentralized exchanges and most of the current available options are at best hybrid. Exchanges typically retain and exercise some control over their respective platforms to ensure safe and secure trade.
How to buy and sell SVD Token on Bancor?
SVD trade on the Bancor exchange is supported through two Smart Contracts:
- SVD Bancor Converter Smart Contract https://etherscan.io/address/0x6431750a2e43ac6c6b3d84444875576b0aa7bd5e
2. SVD Smart Token Relay (SVDBNT) Smart Contract https://etherscan.io/address/0x8dcf1ca9f4716ef8e86a29f224237540f3c7abad
For more information on how these smart contracts work refer https://support.bancor.network/hc/en-us/sections/360000114791-How-Do-Tokens-Work-
To buy or sell SVD on Bancor, many options are available: you may sign up and create a Bancor Wallet to trade, or you may follow the most simple way to convert a cryptocurrency or ERC20 Token as below:
1. Visit https://www.bancor.network/discover
2. You will see the following fields; to buy SVD with ETH, or in other words, to convert ETH to SVD, you must change the second field:
3. Click on the drop down of the RECEIVE currency. You will be displayed with a search box:
4. Select SVD and enter the amount you wish to buy. Equivalent ETH amount will be displayed as below:
5. Click the Covert button. You will see the below option to select the wallet from where to pay for ETH:
6. In the above illustration, you can see that MetaMask is selected, and hence below screen pops up:
7. Depending on the type of wallet you select and the wallet setup you may have, from step 6 onwards the overall process may change. However, you may simply follow the instructions that appear on your screen to complete the ETH-to-SVD cryptocurrency conversion; and voila, you will have your SVD Tokens in your wallet!
8. To sell SVD, simply reverse the currencies; or, to exchange another token for SVD simply enter the respective values in the PAY and RECEIVE fields displayed in Step 2.
The article aims at providing an easy step-by-step explanation of how to trade SVD Token on the Bancor exchange. We hope this is also a helpful and practical way of illustrating how a particular exchange works, therefore, stay tuned!
Soon — other exchanges!
If you would like to find out more about how Bancor exchange operates, or you have some unanswered questions, please visit their Help Center webpage https://support.bancor.network/hc/en-us/categories/360000122411-FAQ, you will find there many useful articles on FAQ.
savedroid Team
