<p>Any service or exchange allowing conversion of one asset into another (whether it is decentralized or centralized), is eventually executing the trade on an orderbook with a large exchange or liquidity provider.</p>

<p>Larger exchanges like Coinbase, Binance, Bitstamp etc. operate their own orderbooks, which have liquidity from users and market makers.</p>

<p>Second tier services like Shapeshift, Changelly etc. maintain balances in all the coins they support on larger services, and when a user wishes to convert an asset, they will execute a corresponding trade on these services.</p>

CC BY-SA 4.0
2019-09-30T04:04:21.440Z
That is they are actually use the trading mechanism for provide swapping facilities. Is it right...???
salman faris
CC BY-SA 4.0
2019-09-30T05:15:32.147Z
Yes, that's right.
Raghav Sood
CC BY-SA 4.0
2019-09-30T05:19:54.563Z
Can you clear one more doubts please.  How it implement?? using trading api that are provided by coinbase like platform...???
salman faris
CC BY-SA 4.0
2019-09-30T05:23:38.800Z
The implementation details will vary depending on the services used - most exchanges offer REST or websocket APIs, while market makers might offer FIX APIs. It's impossible to provide a good answer without more details
Raghav Sood
CC BY-SA 4.0
2019-10-01T15:18:40.410Z
This answer is not entirely correct.  [Bisq](https://bisq.network/) (decentralized exchange) only allows peer-to-peer trades -- there is no interaction with another "larger" centralized exchange.  Also, one can use [Atomic swaps](https://en.bitcoin.it/wiki/Atomic_swap) to exchange cryptocurrencies with no middleman / liquidity provider / escrow.
Jonathan Cross
CC BY-SA 4.0
2019-09-30T04:00:42.883Z
2019-09-30T04:00:42.883Z
Raghav Sood
<p>I am new in crypto. I know something about cryto currency and its working. I am curiosity about the working of Crypto exchange like binance,coinbase...etc... My doubts is </p>

<ol>
<li><p>Some exchanges provide the swapping facilities like one click swapping from one cryto currency to another(That is without use of trading mechanism of buy order and sell order)...How it is possible ? </p></li>
<li><p>Actually the exchanges is hold a large amount of crypto asset for the users to provide one click swapping facilities to the users ....???</p></li>
</ol>

<p>I expect a detailed explanation as possible from this community. Thanks </p>

<exchanges><currencies><exchange-order>
Working of crypto currency swaping (Exchanging) in Crypto exchange
salman faris
# Working of crypto currency swaping (Exchanging) in Crypto exchange

(Asked by: username_0 on 2019-09-30)

I am new in crypto. I know something about cryto currency and its working. I am curiosity about the working of Crypto exchange like binance,coinbase...etc... My doubts is

1. Some exchanges provide the swapping facilities like one click swapping from one cryto currency to another(That is without use of trading mechanism of buy order and sell order)...How it is possible ?
2. Actually the exchanges is hold a large amount of crypto asset for the users to provide one click swapping facilities to the users ....???

I expect a detailed explanation as possible from this community. Thanks

**Tags:** exchanges, currencies, exchange-order


---

## 1 answers

### Answer by username_1 on 2019-09-30. Score: 0 | Accepted answer

Any service or exchange allowing conversion of one asset into another (whether it is decentralized or centralized), is eventually executing the trade on an orderbook with a large exchange or liquidity provider.

Larger exchanges like Coinbase, Binance, Bitstamp etc. operate their own orderbooks, which have liquidity from users and market makers.

Second tier services like Shapeshift, Changelly etc. maintain balances in all the coins they support on larger services, and when a user wishes to convert an asset, they will execute a corresponding trade on these services.

> **Comments:**
> **username_0**: That is they are actually use the trading mechanism for provide swapping facilities. Is it right...???  
> **username_1**: Yes, that's right.  
> **username_0**: Can you clear one more doubts please.  How it implement?? using trading api that are provided by coinbase like platform...???  
> **username_1**: The implementation details will vary depending on the services used - most exchanges offer REST or websocket APIs, while market makers might offer FIX APIs. It's impossible to provide a good answer without more details  
> **username_2**: This answer is not entirely correct.  [Bisq](https://bisq.network/) (decentralized exchange) only allows peer-to-peer trades -- there is no interaction with another "larger" centralized exchange.  Also, one can use [Atomic swaps](https://en.bitcoin.it/wiki/Atomic_swap) to exchange cryptocurrencies with no middleman / liquidity provider / escrow.  

---

