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Digital currency exchange: what solutions are available for exchanging your cryptocurrencies?
Looking for a simple way to exchange cryptocurrencies ? In practical terms, there are three main types of solutions for exchanging cryptocurrencies :
• Centralized exchange platforms (CEX);
• decentralized exchanges (DEXs) such as Uniswap , PancakeSwap or Raydium ;
• External instant exchange services such as the digital currency exchange ChangeNOW — a reliable and fast service that can be used on its own or integrated directly into your wallet.
This article starts with a practical approach: how to switch from BTC to ETH , convert a stablecoin in euros via a platform, or use a cryptocurrency swap directly from a non-custodial wallet .
Reminder: what is a digital currency exchange?
A cryptocurrency exchange involves converting one digital asset into another: for example, exchanging Bitcoin for Ethereum , or a stablecoin like USDT against the euro via a platform. We also talk about crypto exchange rates or trading pairs (for example, BTC / USDT or ETH/EUR ).
Table of Contents
In practice, you will encounter several use cases:
▪ Convert a volatile cryptocurrency into stablecoin in order to reduce exposure to market fluctuations.
▪ Switching from one asset to another to invest in a new project ( ltc ) .
▪ Transitioning between cryptocurrency and fiat currency: an on-ramp allows you to buy cryptocurrencies with euros or dollars, while an off-ramp allows you to resell your digital assets to recover funds in a bank account.
▪ Rebalance your asset allocation via a cryptocurrency-to-cryptocurrency exchange .
The tools you use (CEX, DEX, external services) will primarily change:
▪ the way prices are determined ( order book vs automated market maker );
▪ managing your keys (custodial vs non-custodial );
▪ transaction fees and the spread between buying and selling;
KYC level required and regulatory monitoring.
Solution 1: Centralized Exchange Platforms (CEX)
Centralized exchange platforms are currently the most used channel for crypto-to-crypto conversion .
How does an exchange work on a CEX?
On a CEX, the dominant model is based on an order book : ▪ Buyers place purchase orders at different prices.
▪ Sellers place sell orders.
▪ The platform matches these orders, which creates a market price.
For a beginner, most platforms offer a simplified “Convert” or “Swap” button. Behind this interface, it's still a cryptocurrency exchange via the order book, with:
▪ a spread between the best bid price and the best ask price;
▪ a trading commission (for example 0.1% per transaction on certain consumer CEXs);
▪ any fees that may apply when depositing or withdrawing fiat currency.
Advantages and limitations of CEX for a beginner
Benefits :
▪ Often a clear interface for a first purchase of cryptocurrencies by card or bank transfer.
▪ Direct access to pairs like BTC /EUR or ETH/EUR , convenient for switching from euro to cryptocurrency and vice versa.
▪ Generally competitive fees for large volumes, thanks to significant liquidity .
Boundaries :
▪ You do not control your private keys: the platform remains an intermediary.
KYC Procedure (identity verification) is mandatory in most cases.
▪ Dependence on a central company, with regulatory and operational risks.
For a beginner starting from scratch in euros, the CEX often remains the simplest entry point: deposit in EUR, exchange cryptocurrency , then transfer to a decentralized wallet .
Going further: learn how to buy and decentralize your funds
The free guide will walk you through your first steps, from buying your first cryptocurrencies to creating a software wallet and making a transaction on the blockchain. It is available by filling out the form below.
To delve deeper into these concepts, gain a thorough understanding of how the monetary system and Bitcoin work, and develop a more comprehensive grasp of the tools and legal constraints, we invite you to explore the BSM program .
It includes detailed video tutorials on centralized exchanges, software wallets, hardware wallets, and essential best practices. The program can be accessed via the header or the link above.
Solution 2: DEXs (decentralized exchanges) using a decentralized wallet
With a non-custodial wallet like MetaMask, Exodus, Rabby, or Phantom, the most consistent method with decentralized logic remains the use of a decentralized exchange (DEX). Here, you sign transactions with your own seed phrase , and the funds remain on the blockchain .
Automated Market Maker, liquidity pools and slippage
Most modern DEXs ( Uniswap V2/V3, Curve, PancakeSwap…) rely on an automated market maker (AMM). Instead of an order book, this model uses liquidity pools : users deposit two assets (e.g., ETH and USDC ) and earn fees on each exchange .
When you exchange one token for another:
▪ The size of your order, compared to the size of the pool, determines the slippage (difference between the displayed price and the obtained price);
▪ you pay protocol fees (often between 0.01% and 0.3% depending on the DEX);
▪ You also pay gas fees on the blockchain (especially on Ethereum ).
Steps to trade on a DEX from a decentralized wallet
Simple example with a Uniswap type DEX on Ethereum :
▪ Connect your decentralized wallet to the DEX (via the extension or mobile application).
▪ Choose the pair to exchange, for example ETH to a stablecoin like USDC .
▪ Check the exchange rate , maximum slippage and estimated transaction fees
▪ Sign the transaction in your wallet and wait for confirmation (usually a few seconds to a few minutes depending on congestion).
▪ Check the new balance in your non-custodial wallet .
On fast blockchains like Solana , a cryptocurrency conversion via a DEX can be confirmed in less than a second, with network fees on the order of a cent, making small amounts more viable than on Ethereum L1.
DEX-specific risks
▪ Fraudulent tokens : anyone can create a token and add liquidity. Always verify the token contract through a reliable source.
▪ Impermanent loss for liquidity providers, if you decide to add funds to a pool.
▪ MEV and sandwich attacks are possible on certain blockchains, which can degrade the effective price of a major exchange.
For a user who already has a decentralized wallet , a DEX remains a coherent solution for converting digital assets , provided they understand the mechanisms of slippage , liquidity and gas fees .
Solution 3: Exchange directly from a hardware or software wallet
Some wallets, including hardware wallets like Trezor cryptocurrency exchange features . The idea is that you remain on your wallet's interface, but the exchange is actually handled by a third-party provider (CEX, DEX, or instant exchange service).
A concrete example is the ability to use a Trezor hardware wallet to buy and sell cryptocurrencies directly from the interface, thanks to integrated exchange partners. In this case:
▪ Your private keys remain in the hardware wallet ;
Exchange orders are processed through partner services;
▪ The interface aggregates several solutions to offer a exchange rate .
For the user, it's a way to centralize the management of their digital wallet while maintaining a high level of key protection through a physical device. However, partner services often involve higher fees.
Concrete criteria for choosing between CEX, DEX and external services
For a beginner with a decentralized wallet , the right choice depends on your situation. Here are the main criteria to consider when thinking about a conversion :
▪ Starting point : are you starting with euros in a bank account, or with cryptocurrency already present in a DeFi wallet ?
▪ Amount : on small amounts, gas fees on some blockchains can represent a significant part of the transaction.
▪ Frequency : If you trade frequently, a trading fee and good liquidity are priorities.
▪ Key ownership : favor a non-custodial wallet for storing your funds in the long term, even if it means using a CEX occasionally for fiat conversions.
▪ Available asset pairs : some altcoins are ltc or CEXs.
In many cases, the most common path looks like this:
▪ Use a CEX to convert from euros to a stablecoin or to BTC / ETH .
▪ Transfer to a decentralized wallet (mobile wallet or extension).
▪ Use a DEX or instant exchange to trade between different tokens, invest in DeFi , or access more specialized projects.
Solution 4: External instant exchange services (ChangeNOW, etc.)
Between traditional CEX and DEX, there exists a hybrid category: instant exchange services . Their promise: you send a cryptocurrency to a given address, they send another cryptocurrency back to your wallet , often without creating a full account or depositing your funds on a platform.
Among the fast and easy-to-use services, we can mention ChangeNOW, often integrated as an exchange layer in many wallets.
How does an instant exchange service work?
▪ You choose the pair to exchange (by
example BTC to ETH or USDT to BTC ).
▪ You specify the receiving address of the target cryptocurrency (your decentralized wallet ).
▪ The service provides you with a drop-off address or a QR code to send the starting asset.
▪ As soon as the transaction is confirmed on the blockchain, the service performs the conversion internally and returns the target asset to you.
This type of solution often relies on integrations with multiple CEX or DEX systems in the background to find a exchange rate . The final cost to the user includes:
▪ network fees for sending the original cryptocurrency;
▪ a spread specific to the service;
▪ possibly fixed or variable fees depending on the amounts.
For a reasonable amount, it's a practical option if you don't want to open an account on a new CEX or if you prefer to stay with a non-custodial wallet .
Best practices for securing your digital currency exchanges
Regardless of the solution you choose for your cryptocurrency exchanges , a few simple habits significantly reduce the risk:
▪ Test each new service with a small amount before increasing the size of the transactions.
▪ Always check the site URL, the token contract and the legitimacy of the DEX or provider.
▪ Keep the majority of your assets in a secure offline or decentralized
Converting cryptocurrencies isn't just about fees; it's also about striking a balance between ease of use, key control, tax transparency, and exposure to technical or regulatory risks. By intelligently combining CEXs, DEXs, instant exchange , and hardware wallets , you can build a strategy tailored to your profile while maintaining long-term control of your cryptocurrencies.
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Yoann
Trained as an engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future, I am participating in its democratization by developing Crypternon.