How do digital currency exchanges work?

At FlowFX, we help you convert between US Dollars and Euros using digital currencies called USDC and EURC. These digital currencies are traded on special online platforms known as decentralized exchanges (DEXs).

Here’s why our fees are lower compared to traditional currency exchange services:

No middlemen

In traditional currency exchange, banks and other financial institutions act as intermediaries, charging extra fees for their services. With DEXs, there are no middlemen involved, which means lower overall costs.

Global liquidity providers

Instead of relying on intermediaries, DEXs allow individuals worldwide to provide the currencies being tracked. These people can earn a small return (around 0.05%) for contributing their funds. This global network of liquidity providers helps keep costs down.

Efficient markets

DEXs use technology to automatically match buyers and sellers, ensuring that trades happen quickly and efficiently. This efficiency helps reduce overall costs.

FlowFX operates pools of USDC and EURC on these DEXs, allowing us to access these lower fees and pass the savings on to you.