What are effective ways to exchange between different cryptocurrencies?

Question

Faisal Khan · Accepted Answer

There are two ways to do it:

Do the exchange with someone. For example if you have Bitcoins and I have LiteCoins, we both can agree on a conversion rate, by looking at what some exchanges are offering and cover accordingly, or use a common denominator currency like the US Dollar and then do it using that value. Create wallets and transfer.
Use an exchange. Unless you a holding on to currency that does not have much liquidity for trade, you ought to be fine. There is applicable fees (needless to say), would be applicable.