This article explains how you can trade or swap $HIVE for $HBD and vice versa, instantly and without fees on the Hive Internal Market.

<center> https://i.imgur.com/y1eR9lx.jpg </center>

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# The Hive Internal Market
Also called the [Hive Internal Exchange](https://inleo.io/@leoglossary/leoglossary-internal-exchange-hive), offers **near instant and zero fee*** trading between [HBD](https://inleo.io/@leoglossary/leoglossary-hive-backed-dollar-hbd) and [HIVE](https://inleo.io/@leoglossary/leoglossary-usdhive) on the [Hive Blockchain](https://leofinance.io/@leoglossary/leoglossary-what-is-hive)'s [Base Layer](https://inleo.io/@leoglossary/leoglossary-base-layer-blockchain). This market must not be confused with the markets and exchanges powered by *Hive Engine* [smart contracts](https://inleo.io/@leoglossary/leoglossary-smart-contract), which operates on the [2nd Layer](https://inleo.io/@leoglossary/leoglossary-layer-2) of the Hive Blockchain.

**given that you have enough [Resource Credits (RC)](https://leofinance.io/@leoglossary/leoglossary-resource-credits-rc) in your account.*

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# When to use – Convert or Swap?
As you probably already know, there are two ways to get HBD for HIVE and vice versa; By using the [Conversion Mechanism](https://inleo.io/@leoglossary/leoglossary-conversion-mechanism-hive) or by swapping/trading on the Hive Internal Market. 

The short (and probably oversimplified) version is that in most cases, you want to be using the internal market and **not** the conversion mechanism. If you want to gain a deeper understanding of how the conversion mechanism works and the when's and why's of when it's advisable to use or not, the following two articles can be a good place to start (in addition to the @leoglossary link in the paragraph above):

- [Trade Hive for HBD or Convert Hive to HBD? What to choose and when?](https://inleo.io/@gadrian/trade-hive-for-hbd-or-convert-hive-to-hbd-what-to-choose-and-when) by @gadrian
- [Hive to HBD conversions are weird](https://inleo.io/@edicted/hive-to-hbd-conversions-are-weird) by @edicted.

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# How to use – Choose a Front-End
There are several front-ends you can use, and they all work pretty much the same way. Some have only an order-book view and trading, and some also offer direct swapping. They're all pretty great, so it basically comes down to what you prefer. Simply head over to one of them on one of the links below, and sign in using Hive Keychain.

- [Hivedex](https://hivedex.io/)
- [Hive Wallet](https://wallet.hive.blog/market)
- [HiveHub](https://hivehub.dev/market)

If you're looking for an in-depth look at the different front-ends, check out this excellent article, [Internal Market Frontends for HIVE and HBD Trading](https://inleo.io/@ifarmgirl-leo/internal-market-frontends-for-hive-and-hbd-trading) by @ifarmgirl.

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# Where liquidity comes from (HBD Stabilizer)
To ensure that there's always liquidity available for users to be able to swap/trade back and forth between HIVE and HBD, there is a trading bot operating on the internal exchange called the "[HBD Stabilizer](https://inleo.io/@leoglossary/leoglossary-hbd-stabilizer)", a service which is funded by the [Decentralized Hive Fund](https://inleo.io/@leoglossary/leoglossary-decentralized-hive-fund-hive).  The HBD Stabilizer also serves as one of the mechanisms to keep HBD at (or close to) peg.

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# Wrap-up
And that's it! Now you know all you need to be able to trade freely between HBD and HIVE as much as your heart desires.

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<center> https://i.imgur.com/oj5ks49.gif </center>

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### Intention / For Hive Creators
The goal of this article is to explain how layer 1 trading/swapping on Hive works and what the internal market is, as simply and as tidy as possible, to provide a quick and easily digestible overview for users, but with relevant links for those who want a deeper understanding.

This is also my first deliberate attempt to write "evergreen" content, i.e. an article that stays relevant past the 7 day voting window. I've tried to optimize the language and structure of the post throughout, to make it easy for search engines to easily understand what it's about, thus (hopefully) giving it a higher hit rating for the keywords and topics contained within. I'll be doing a separate post on the specifics of this soon.

### Feedback appreciated
I'm also very interested in your feedback in the comments below, especially if I got something wrong, but also in general. It belongs to this story that it took me *way* too long to realize the difference between the L1 market and L2 markets of Hive, and it was a pretty big eureka moment for me when I did. And also quite embarrassing, given that I've been here almost 7 years ... *cough*. Anyways..

### What is Hive?
To learn more about Hive, this article is a good place to start: [What is Hive?](https://inleo.io/@leoglossary/leoglossary-what-is-hive). If you don't already own a Hive account, [go here to get one](https://inleo.io/signup?referral=mightpossibly).

Posted Using [InLeo Alpha](https://inleo.io/@mightpossibly/swap-hive-hbd-using-the-hive-internal-exchange)