DEXes are peer-to-peer, meaning they allow users to directly exchange cryptocurrency without a middleman. Accept Changelly terms and slide to confirm the swap.Ī decentralized exchange (DEX) involves no central governing authority, and instead is regulated using self-executing smart contracts. This offer will expire, so make sure to confirm the swap in a timely manner. You’ll see a swap details page with the swap summary including outgoing funds, associate fees and the total amount of crypto you’ll receive. Then enter the amount of crypto you want to swap (either in fiat or sats/gwei). Select the crypto you want to swap ( From) and the token you’d like to receive ( Swap to). Open your BitPay Wallet and tap the Swap option on the home screen. Some limitations on swapping obscure tokens.BitPay partners with Changelly to facilitate low-fee swaps for over 50 coins across the most popular blockchains. You have full control over your assets, BitPay just assists in making the transactions. The BitPay Wallet is a non-custodial wallet (aka self-custody), meaning that there is no third party holding your crypto. Swapping directly from the BitPay Wallet is an easy way to maintain full control over your crypto conveniently in one place. Within a wallet (like the BitPay Wallet).There are three primary venues where crypto swapping takes place: Swapping is a popular activity among crypto users, so services of various types and sizes now offer swaps. Different swap services offer different trading pairs, and those allowing swaps between two very small or obscure coins may be more difficult to find. Crypto exchanges offer up various “trading pairs”, asset combinations that can be swapped within their platform. Transactions happen instantaneously, and without the need to first exchange crypto for fiat. Swapping, on the other hand, allows users to seamlessly transfer one cryptocurrency for an equal amount in value of another. If taking place on a crypto exchange, you’ll be hit with whatever commission or other fees they charge on both sides of the transaction. Trading requires exchanging one cryptocurrency for fiat and then purchasing another coin with the fiat you obtained. Although the end result is essentially the same (start with one coin, end with another), their respective processes vary greatly. It’s true that the words “swap” and “trade” can be taken as synonyms, but in crypto parlance they have quite different meanings. This means if you’re a Bitcoin user, you may need to swap for some Ethereum or another ERC-20-compatible token if you want access to the DeFi ecosystem. Participating in certain protocols, such as decentralized finance (DeFi), can only be done via specific blockchains. Other times, traders will perform a token swap in the hopes of capitalizing on a move in the market they sense is coming. Sometimes swaps are necessary to cover the fees on a transaction that can only be paid in a specific blockchain’s native coin. Swapping makes it easier for crypto users to explore the further reaches of the blockchain, and be a part of multiple projects they wish to support. Token holders may have the opportunity to vote on community governance proposals that guide the future of a project or stake their share in exchange for passive interest income. Saving time and paying less in fees are obvious benefits, but it’s far from the only reason users participate in swapping.Ĭrypto tokens are effectively the keys to their native blockchain’s kingdom, affording holders various benefits within their ecosystems. It was an expensive and inefficient method to jump between coins, but it was the norm until the innovation of token swaps.Īhead we’ll dive into how to swap cryptocurrency, including some key features and benefits.Ĭrypto swapping allows you to instantly trade one cryptocurrency for another, with no crypto-to-fiat exchange required. This once required selling one token for fiat, then purchasing the second with the fiat. Sometimes, for various purposes we’ll get into momentarily, you’ll want to switch one cryptocurrency for another. The top 10 cryptocurrencies make up a sizable majority of the total crypto market cap, but there are actually thousands of smaller tokens and projects out there that compose the rest.
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