This, if you want to do it live. Otherwise, it's probably best to use a pre prepared edit. This will certainly be the most seamless and cleanest sounding transition if there is a sizeable bpm difference, as there are certainly programs out there that will handle more extreme time stretching with better quality preservation than traktors native timestretch algorithm...
This is a good example of how the OP mentioned having 3 beats of one tempo being equal to 4 beats of another. This track transitions using the same principal. If i remember correctly it moves between 174 and 130 through the breakdown, utilising a 3/4 time signature at 130 which directly correlates to a standard 4/4 buildup at 174
I don't think there is anything wrong with a pre-made edit, they require plenty of skill to be done to a professional degree. Conversely, in my experience crowds won't be freaked out if you transition between any two tempos as long as you utilise points where there is nothing to highlight the tempo of either track. Given a few bars worth of no discernible tempo, your brain will adjust to a new one without any weirdness...
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