What is Convert?

Convert, short for Instant Conversion, is a feature that allows users to instantly swap one crypto token for another.

The Convert feature can be conveniently understood as a crypto ATM working around the clock. Through this feature, users can easily and instantly exchange the digital assets in their accounts to any crypto token they desire.

How Does Convert Work?

This process is different from the order book model because the Convert feature applies the counter quotation model. Acting as foreign exchange over the bank counter, if users want to trade for different digital assets, they will make an initial inquiry at the Convert counter, where they will be given a quote based on the market conditions (the exchange rate between different cryptocurrencies). If the user accepts the quote and confirms the order payment, the Convert system will conduct an instant settlement for the trade and credit the amount of desired crypto tokens to the users’ cash account.

Advantages of Convert 

1.     Easy operations and real-time settlement

The Convert feature provides users with 24-hour quote services. Users can convert with just one click when the quote is accepted. The trade will be instantly settled, and the crypto tokens swapped will be credited directly to the users’ cash account. To be specific, users only need to select their target token and input their desired amount to complete the conversion without having to make any other operations.   

2.     Once the quote is accepted, the order price is settled, and the order will be executed. Users bear no additional risks from the price movements.

Compared to the order book model, the Convert feature ensures users are not exposed to additional risks from the price fluctuations. Once the quote is accepted, the order price is settled, and the order will be executed. Under the order book model, the system conducts order matching for buyers and sellers, which means the order may not be filled if there is not a matching order available on the market. This is commonly seen in the illiquid markets and traders normally must wait until there is more market depth to have their orders executed. As traders need not wait for an extended period, they could possibly bear some risks from price movements during the waiting period. 

3.     Conversion Price advantage for large orders

Compared with the order book model, the Convert feature has a conversion price advantage for large orders and can help avoid the risks of slippage. Under the order book model, the larger the order, the higher likelihood of the order price deviating from the spot market (the larger the buy order, the higher the order price; the larger the sell order, the lower the order price). Price deviations lead to increasingly sparce orders available on the market, making it harder for traders to have orders executed at an acceptable price，thus resulting in price slippage. Tokens with a small market cap and low market depth pose higher risks of slippage, which leaves more serious impacts on traders. However, such risks can be effectively reduced using the Convert, because traders can have their large order executed once the quote is accepted and confirmed. As the Convert set no limits on the amount of a single token swap, large orders mentioned here are just relative. It is worth noting that no transaction fees are incurred during conversion, which also helps reduce the transaction costs of large orders. 

4.     More token pairs are available for easy conversion

Users can conveniently and instantly convert between any two tokens supported by the Convert feature, which means the feature provides more token options for conversion than regular trades. Direct conversion between any two tokens is much simpler than an order book-based trade with complex trading steps. 

For example, if we trade the ONG/CRO pair in the regular trading model, the platform needs to open the two corresponding marketplaces to realize the trading of the pair. However, the cash trading market is mostly posted in USDT, BTC, ETC and other stable or popular tokens, which means an intermediary token is required to facilitate the ONG/CRO pair trade. In practice, users normally convert (sell) ONG to USDT at the ONG/USDT market, then swap (buy) the USDT to CRO at the CRO/USDT market.