What are the differences between a fixed rate exchange and a floating rate exchange?

Posted by Secureshift

Updated on 01/03/2023

In a floating rate exchange, there remains a possibility that the rate of the currency might change for the worse or maybe for, the better. Thus, the amount you will receive might change as well. This means that you can get either more or fewer coins than expected at the beginning of the exchange.

Nothing can disturb the amount you receive in a fixed rate exchange as you get the exact amount shown to you initially. These exchanges are secured from the rate fluctuations and sudden market changes.

Floating rate exchanges do not impose any restrictions. On the contrary, setting fixed upper limits is a mandatory measure for the fixed rate exchanges as we all take the risks of cryptocurrency volatility, and the risk grows with the rise in the value of coins.

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