Are Traditional Cryptocoin Exchanges Safe?
It is unsafe to keep your coin in traditional cryptocoin exchanges. They hold your coins in wallets you don't fully control. You are risking both their value and safety. You put 100% of your trust in the exchange owner. What happens if their exchange website becomes overloaded? It would refuse to log you in, preventing you from withdrawing your coins. You could've otherwise exchanged them on a different service in the meantime. During that critical time the value of your coins could drop. Another issue is security, Many exchanges aren't insured in the case of theft. If a hacker were to compromise an exchange and drain the balances of accounts (unfortunately an all too common occurrence) the exchange has no legal requirement to repay you for lost funds. The best example is the famous Mt Gox exchange hack which lead to malicious actors stealing $460 million worth of Bitcoin.
What are the fees Swapity charges?
All fees are included in the given exchange rate so there are no additional fees. What you see is exactly what you get. The fees consist of our fee and the standard miner/blockchian transaction fee.
What About Protecting My Private Keys?
Your private keys should be stored securely. It is advised to sign transactions in a secure environment, ideally on an offline computer. Hardware cryptocurrency wallets are a convenient and secure way to manage your coins. We are in the early planing stages of designing our own hardware wallet which will integrate with Swapity to create the first secure all-in-one solution to managing and swapping cryptocurrencies.
You swap directly with us, we have reserves for each coin we support. Instead of matching your sell offer with another bid offer like traditional exchanges you swap your coins for ours, no middle man involved.
How does the swap happen?
Granted the crowdfund is successful we will initially support Bitcoin, Ethereum, Litecoin, Ethereum Classic, Monero, Zcash, and of course Swapcoin. Additional coins/tokens may be added and voted upon later.
What Coins will you support?
All that's needed to swap is the receiving cryptocoin address and return address for your coins. Say you want to swap Bitcoin for Ethereum. You would need the Ethereum address you want to swap into and a Bitcoin return address in case of any problems, like sending more then the swap limit.
Each swap receives a unique swap ID. With it you can track the details of your swap and check if it has competed processing. Processing times vary according to the coin and network load. For example Bitcoin takes about 10 minutes to process a transaction while Ethereum only takes about 15 seconds.
What about the swapping procidure?
How are Swapcoin rewards going to be distributed?
Every 12 weeks 100% of the exchange profits may be claimed by Swapcoin holders. Exchange profits will be converted to Ether for claimers to withdraw through an Ethereum smart contract.
What is your roadmap?
Granted our crowdfund successfully sells out we expect Swapity exchange to be operational in early
2018. This will be in a limited release in which some features like the public API will not be finalized.
In the second half of 2018 we expect Swapity to become fully operational along with the completion of
the desktop, web, and mobile wallets. The hardware wallet will also be focused on at that time.