What is crypto swap and why should you start swapping?

What is crypto swap and why you better start swapping_ - blog-min

When talking about Bitcoin and other cryptocurrencies, there is one good question you may ask: how to get crypto? There are several ways to get cryptocurrencies

One way is to register at a centralized exchange and buy crypto with fiat. Another way is to perform a crypto swap when both users exchange crypto directly. There is not much noise about swaps and the concept is still quite unfamiliar to the majority of web3 users. That’s why we would like to explore swapping in detail and share our findings. 

What is a crypto swap?

Crypto swap is an option for web3 users to exchange their crypto with each other without paying extra commissions. Just to give an example, if you want to change BTC into ETH, then you have to go to the centralized or decentralized exchanges and perform multiple operations there. The crypto exchange logic is not straightforward. Firstly, the exchange will change BTC into fiat and take the commission for it. Secondly, it will change fiat into ETH and also take the commission, then it will send it to your account. In such a situation, a crypto swap doesn’t require fiat money as an intermediary, leading to fewer transaction fees applied. 

Why consider crypto swapping?

Crypto swap is good while dealing with freshly minted crypto. For example, a new blockchain ecosystem has emerged and its token acts as an entry ticket to various services. Crypto swapping helps to make financially sound decisions and explore the opportunities provided by the new blockchain ecosystem. It’s an ideal option for web3 users who would like to support various projects. 

There are thousands of coins and tokens in web3 and more keep emerging constantly as the market expands. Each of them presents a potential investment fortune. Sometimes the crypto is so new that it’s not listed yet at the crypto exchange. Using crypto swap instead of crypto exchange makes a huge difference in such a situation.

Let’s discuss one of the most common use cases for crypto swaps. You purchased crypto you believe will be profitable in the future. After a while, you realize that some other project seems to be more promising. You would like to sell the coins you have and buy new ones. 

A conventional method of conversion is to go to the exchange and convert your coins into fiat and then fiat into other coins. Unfortunately, the extra steps you have to take, result in multiple transaction fees.  

That’s why one of the most important functions of crypto swapping is to remove additional issues, reduce transaction fees, minimize commissions, and overall provide a more seamless process of getting the coins you require in no time.   

How does crypto swap work?

Unlike trading at crypto exchanges, crypto swaps usually take place at crypto swap platforms: Changely, Swapy, Airswap, Shapeshift, etc. They perform the exchange of cryptocurrency assets for another coin or token of the same value. It’s a more convenient procedure for individuals if compared with going to exchanges.

The timing of end-to-end crypto swap differs from platform to platform. Usually, the process takes only a couple of steps and takes a few seconds. You have to choose the cryptocurrency you would like to swap, specify the amount, and proceed to confirmation. 

Other than crypto swap platforms, swapping can be featured at crypto payment platforms and even crypto wallet apps

Pluses and minuses of crypto swaps

Of course, as with any other type of activity on the blockchain, crypto swaps have their benefits and limitations.

Pluses of crypto swaps

  • cryptocurrency swapping helps to bring more variety to the crypto you hold already;
  • minimizes risks while bringing broader investment opportunities;
  • increase crypto market efficiency;
  • improve the interoperability among different blockchains;
  • opens opportunities for big profits;
  • improves market accessibility because crypto swaps eliminate intermediaries. 

Minuses of crypto swaps

  • crypto swaps are public that’s why there may be privacy concerns;
  • blockchain technical bugs can cause crypto pair loss while swapping;
  • swapped crypto of unknown origin could cause difficulties with later trade;
  • high volatility of the market could bring losses from the swap.

Spatium Feeless Bitcoin Wallet recently released its MPC P2P Swaps (crypto-crypto) without escrow. Spatium P2P Swaps is currently in closed beta but already proved to be the cheapest swaps at the market.

Get the Spatium Wallet App and enjoy how user-friendly and convenient it is. Protect your crypto assets with MPC cryptography and save on fees while sending transactions to blockchains. Moreover, soon Spatium will enable peer-to-peer crypto swaps when you don’t need to go to centralized exchanges to swap cryptocurrencies. Stay tuned! 

Spatium Bitcoin MPC wallet is easy to use and free to download. It’s available on Android and iOS devices.

Try Spatium Feeless Bitcoin Wallet and the feature allowing you to pay a network fee in the currency you send instead of native chain tokens (currently available for USDC on Ethereum. More chains and tokens will be added soon).

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Keep a close eye on Spatium Feeless Bitcoin wallet which is building DeFi on Bitcoin and actively working toward the introduction of feeless crypto transactions and cheapest ever peer-to-peer crypto swaps without escrow.

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