How to convert one crypto to another to play Mega Moolah
You got your hands on some XRP (Ripple) a while back and now you want to use your coins to play Mega Moolah online. The problem is you cannot find an online casino that takes XRP. They all seem happy to take Bitcoin, Bitcoin Cash, Litecoin, etc. So what's the deal? And more importantly, what do you do about it?
First, understand that XRP doesn't enjoy very robust adoption among online gambling operators. As more of a stablecoin than a pure crypto, there are too many disadvantages to XRP for operators to get involved with it. That's why you're not finding any casinos willing to take your coins. But no worries. You can get around the problem by converting your XRP into one of the other more popular cryptos.
There are four primary ways to complete such a conversion. Each will be described in more detail here. Note that they all have their advantages and disadvantages. You might do well to educate yourself as thoroughly as you can before you start trading coins.
1. Go to a broker exchange
A cryptocurrency exchange is an online destination visited by people looking to buy and sell coins. Not all exchanges work in the same way, though. For the purposes of this discussion, there are two kinds of exchanges that we will call 'broker exchanges' and 'straight exchanges'. Your first method of conversion is to take your coins to a broker exchange.
A broker exchange operates like a stock exchange - e.g., the New York Stock Exchange or London Stock Exchange. You place an order to sell your coins at a particular price. Then you wait to see if there is a buyer. Meanwhile, buyers are placing their own orders in hopes of getting coins at their preferred price.
These sorts of exchanges can be run by cryptocurrency companies or individual entrepreneurs. There is no physical location associated with them, as they exist simply as websites or web servers. They are operated by entities that make their money on the fees they charge. Both buyer and seller pay a transaction fee.
Advantages and disadvantages
Your main advantage with the broker exchange is that you have the widest possible exposure to the greatest number of cryptocurrencies. That's because broker exchanges generally don't care what people are trading as long as exchange operators get paid. You will find cryptos on broker exchanges that you will not find being traded anywhere else. That is a big plus if the coins you are trying to sell are not among the top 50 or so.
The disadvantages of going this route are twofold. First, there is no guarantee you will find a buyer. You may be dealing in coins that the greater crypto community views as worthless. Second, you still have to take any earnings you realize from the sale and purchase your new coins. That takes time. It also means yet another fee.
As a side note, you do not have to take your coins to one of the big exchanges if you want to trade this way. There are both local and regional exchanges in many parts of the world. These are smaller exchanges that keep their trades within a certain geographical region. They tend to assess lower fees - or no fees at all in some cases.
2. Go to a straight exchange
The second kind of exchange is the one we call the straight exchange. This is an exchange that works a lot like a fiat currency exchange you might find at the airport. When you convert here, you are not posting buy and sell orders like you would on a broker exchange. Rather, you are using one currency to buy another straight up.
ShapeShift.io is an example of one such exchange operating in Europe. ShapeShift currently supports nearly 50 cryptocurrencies including all of the big names. Unless you are trading something that is particularly obscure, you should be able to make your conversion here.
Doing so requires you to sign up for a free account. Once signed up you have access to a simple crypto-to-crypto platform that lets you trade one crypto for another almost instantly. However, conversion can be a bit slow during peak trading times.
Trading on Binance
Binance.com is another straight exchange that gives you the ability to trade one cryptocurrency for another fairly seamlessly. Their system is not quite as easy as Shapeshift's, but it is certainly not as complicated as a broker exchange.
You sign up for a free account and then make a deposit with the coins you are trying to convert. Then you can use those coins to buy one of the other cryptocurrencies Binance supports.
Advantages and disadvantages
Going with a straight exchange makes converting cryptocurrencies fairly easy. It is also a lot faster. You are not posting a sell order and hoping someone will buy. You are also not worrying about having to drop your asking price if no buyers can be found. Conversions happen nearly instantly at whatever the going rate for that particular cryptocurrency is.
One disadvantage of this method is limited access. Many of the straight exchanges limit the number of cryptocurrencies they support as a means of limiting their own exposure. If they supported every crypto on the market, they could potentially have their hands in thousands of digital assets. That is way too much exposure to be safe.
3. Online payment systems
A number of online payment systems recently began dipping their toes in the cryptocurrency pool. A couple of them now offer cryptocurrency exchange. Two of the most recognizable names here are Skrill and Neteller. Fortunately, both of them also enjoy wide acceptance within the online gambling community. That is an added bonus for making deposits at your favorite online casino.
Skrill bills its cryptocurrency services as services to "move money". Using them is fairly straightforward. You sign up for an account, make a deposit, and off you go. They support all of the major cryptocurrencies and offer you more than 100 different ways to make a deposit. You can use your debit card, a bank transfer, or the coins you already own.
Neteller works pretty much the same way. By signing up for an account and initiating that first crypto trade, you will be creating a digital wallet on their system. You can move existing coins from one of your other wallets into your Neteller wallet for the purposes of converting them. Conversion is a simple process of selling your existing coins and buying new coins to replace them.
Advantages and disadvantages
As good as this kind of conversion is, one of its chief disadvantages is its lack of support for less popular cryptocurrencies. Online payment services almost always support the top five or 10 coins, but beyond that is a crapshoot. You may not be able to find a provider willing to take the coins you want to convert.
The big advantage of using an online payment system is that conversion takes place almost instantly. Converting from one crypto to the next is as easy as using your browser to pay for something online. A few taps or clicks is all it takes.
4. Peer-to-Peer conversion
The fourth and final way to convert your unwanted coins into a coin you can gamble with is through peer-to-peer conversion such as LocalBitcoins.com. Peer-to-peer conversion is really nothing more than hooking up with someone else and swapping coins. Maybe you have XRP you cannot gamble with.
Likewise, you might run across somebody who wants to buy LPT in order to get on the Livepeer streaming network as a service provider. Given that LPT is somewhat harder to come by, he might be willing to trade some BCH for that LPT you have sitting in your wallet.
Advantages and disadvantages
Peer to peer conversion's biggest advantage is that it costs you nothing. You and your trading partner work out among yourselves how much coin you are going to swap. Then you initiate push transactions to send one another the agreed coins. There is no middleman charging a fee to help you out. No-fee conversion is a big plus.
The biggest disadvantage is that it is hard to find other coin owners to trade with. The vast majority of cryptocurrency users swap their coins on exchanges. So finding someone willing to trade their BCH for your XRP via a peer-to-peer arrangement is not necessarily going to be easy.
As you can see, it is not the end of the world if your favorite online casino doesn't accept the cryptocurrency you own. You can still play Mega Moolah with crypto by converting the coins you currently own into something your casino will accept. You can convert by using a broker or straight exchange, an online payment system, or peer-to-peer swaps. There is no need to give up on Mega Moolah just because you have a coin your casino doesn't want.
Byline: This article was published by Mega Moolah expert Henry. Media and other enquiries.
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