Learn strategies to optimize rates, minimize fees, and secure trades on the best exchanges.
Maximizing Your FTM to DAI Conversion
An experienced trader knows the importance of utilizing various cryptocurrencies. If you have an asset like FTM and volatile times are ahead, swapping to a stablecoin like DAI can be wise. Our guide covers everything to analyze before you convert FTM to DAI. That includes understanding both projects, choosing an exchange, and the tips to apply to maximize potential gains.
Understanding FTM
Fantom is a decentralized platform that supports smart contracts and uses blockchain technology. It’s a layer-1 platform that makes it easy for developers to create dApps. It is EVM-compatible, so apps from Ethereum’s chain can be easily ported to the blockchain.
The network can settle transactions in up to two seconds, handling thousands of transfers each second. Opera and Lachesis protocol are the two main technologies supporting the ecosystem. Fantom uses a consensus mechanism that’s a variation of the proof-of-stake system.
Fantom is at the 56th spot in the crypto market by market cap, which is around $1.97 billion. Its circulating supply is 2.8 billion FTM coins, which isn’t far from the total supply of 3.17 billion.
Understanding DAI
DAI is a stablecoin that has a soft US dollar peg. That means the collateral is a mixture of other assets. With the minting of each DAI, these cryptos are entered into vaults secured by smart contracts. MakerDAO is a decentralized autonomous organization maintaining the stablecoin and aiming to keep its value around $1.
You can now find around 5.37 billion DAI coins in circulation. The asset is available at many crypto exchanges. Once you are ready to invest DAI back in the crypto market, check out the Dogelon Mars price prediction and carefully analyze the high potential of meme coins.
Choosing the Right Exchange Platform
Picking a suitable decentralized exchange is vital to ensure the FTM to DAI swap goes smoothly and with minimum expenses. Here are the best suggestions:
- Godex. Godex profiled itself as the leading DEX in the market. You can lock rates to ensure receiving the promised sum. The exchange can be initiated in seconds since you don’t need to register. That also maximizes anonymity because you don’t share any personal details. Even if you trade large amounts, don’t worry because Godex doesn’t apply any limitations per trade or day.
- LetsExchange. It’s another non-custodial exchange that supports over 5,000 currencies. You can pick between fixed or variable rates, and the fees are transparent.
- SimpleSwap. The loyalty program can be attractive if you register, but it’s also possible to trade without signing up. The platform is easy to use even if you are a beginner.
How to Optimize the Conversion for Maximum Profit
Here are some tips to apply when converting FTM to DAI:
- Monitor market prices. FTM is currently tradeable at about $0.7, while DAI should maintain a stable $1 value. Fantom’s worth, on the other hand, can change in minutes, let alone hours or weeks. That’s why monitoring the value and knowing price patterns can be imperative to maximize potential profit.
- Timing the market. Once you notice the timing is right, it’s important to act quickly. Over the last 12 months, FTM has gained over 2x in value. The coin can lose or gain as much as 10% or more in a single day. You should aim to trade FTM to DAI when Fantom’s value is highest. If you predict well, you can convert back after the price drop. That way, you’ll profit while ending up with the same amount of FTM coins in your wallet.
- Minimizing fees. The charges can vary on the exchange and the trading amount. Some exchanges offer a locked rate to avoid unexpected slippages. There also might be a first-time trade or other promotions that reduce fees – look to use these to maximize potential profit.
Converting FTM to DAI: Wrapping Up for Maximum Gains
For starters, make sure it’s the right moment to invest in a stablecoin. DAI is a specific choice since it doesn’t use fiat currencies but rather a combination of other crypto assets as a reserve. The FTM-DAI trading pair is available at many exchanges. However, it’s beneficial to trade at non-custodial decentralized platforms. The entire process takes a few minutes to complete and DAI will arrive quickly at your wallet.
