Bitcoin Forum

Recently I found out about swapping possibilities in the desktop app of my cold wallet. I kind of understand what is the swap however still not sure my understanding is correct. Hence few questions regarding swapping of coins:

1. Why would you swap one coin to another?
2. When do you decide to do it? Like what is the indicator that swap can be profitable?
3. Do you use CEX or DEX? Or some wallet?
4. What if you don't have a pair on a CEX? Do you convert to USD/USDT and buy another coin?
5. What are risks usually related to swapping?
6. Any advice you would want to share with beginners?

thanks.

1. If I need BUSD, or Matic while I have BNB or any other available pair token then I will make the swap, it is just like trading but with a higher fee.
2. Swapping would be profitable in terms of getting airdrops, or otherwise it is the same as trading where we have to do FA and TA to make profits, we have to do the same here.
3. I have used CEX's and DEX's swaps and also wallet's swaps too.
4. If we don't have pair then we find a way, like you aforementioned.
5. high fee, other than that, I don't see any risk until you are using a trusted one.
6. Do no take swapping as trading, if you want to trade then trade instead of swap. I hope these answers will be of help.

Let's say it is an alternative for when the occasion warrants it, for example you need to pay a gas fee for token "A," Well, you change token "B".
You don't want to withdraw a certain token from the exchange because the fees are very high, so, swap, you send it to your wallet and there you make the swap to the cryptocurrency you want to hold.

They help you or solve it, but they are not cheap, in my case I have sometimes paid up to 10% but for small amounts, but I have been able to make the payment or withdraw, as the case may be.

1. Because I need it.
2. When I need it and when I want to sell, usually.
3. Both. Those wallets that have integrated exchanges, I had no problem with them.
4. Yes, that's what I'll mostly do.
5. Not that much at all but just the fees and expect that you'll receive lesser than the amount you'll trade.
6. Just explore and experience it but be wary of what to use and stick to the known ones as you start.

1. if you need one token/coin to encash your crypto, like if you need USDT and you have BTC, or other alts
2. once you need it, and if you have the feeling that getting another alt is of advantage than having what you currently have
3. both
4. look for alternative pairs, there will always be something to trade with your alt, usually, you need 2 to 3 step trading or swapping before you can get the alt you want
5. high fees, low liquidity hence long period of waiting if you have target sell/buy price
6. use alts with good liquidity and presence in most trading platforms, so it won't be too difficult to convert your currency

Swapping has many uses. Like exchanging coins that have expensive transaction fees for coins that have cheap transactions. Apart from that, swaps are also useful when we need coins that we don't have yet. So basically there is no need to go to the exchange first to buy the coin. Just need to do a swap and everything is done.

As far as I know, that might be the benefit of the swap feature.

Watch out for the price impact. Some pairing have large price discrepancies due to the low liquidity on that particular pool so it's best to double check the value on aggregators like Coingecko first before approving the swap. You can either change the DEX where liquidity pool is higher or choose another pairing.

Swap is like trade and you swap your coins when you want to make a trade for buying a coin or selling a coin to take profit or cut loss.

Swap can be used for airdrop hunters to increase their on-chain interactions and transaction volume to get chances for being on top of airdrop wallet list.

Check on chain transaction fee. Some times on chain transaction fees are very expensive like on Ethereum blockchain.

Check slippage that will be decided by Liquidity pool and custom settings of the project team.

Swap is for DEX, not for CEX. On CEX, you trade, not swap.

Interactions with smart contracts are risky.

How to revoke token approval (https://coinmarketcap.com/academy/article/3-minute-tips-how-to-revoke-token-approval-following-opensea-s-latest-security-episode)

https://revoke.cash/
https://app.unrekt.net/
https://etherscan.io/tokenapprovalchecker

swapping coin is usually being used for the sake of convenience you just sometime might be too lazy to deal with the complicated process of depositing coin to an exchange you just need to swap a small amount and done with it then you can use swap.
when using swap what you need to know is just that here's the money that you want to swap as an input and the output you will get certain coin with this exact amount you just don't need to think about current buying orders or sell orders.
its that easy, thats why even uniswap right now is having so many liquidity, its quite effecting for DCA and also for those that tries to swap to coin that aren't listed on an exchange.

in my opinion, you can use swap when you want to convert certain coin thats popular enough for it to have sufficient liquidity otherwise the slippage might also be a concern when swapping.

If my holding coins have some bad news upcoming or one another token have a very good news upcoming and I have no extra fund to invest then I will swap to another coin for quick profit and maybe swap again once I take my profit.

Using both, Cex for daily trade and P2P purpose while Dex for just new tokens or Layer2 network not listed in top CEX.


If this is only option then Yes

CEX: Not your phrase,not your wallet= not your fund in your hand
Dex: ""Hacking issues"" Contract compromised or something else


Yes, Always use Cold or hot wallet for long term and do not use main wallet for direct swapping in wallet (dex).  When you want to swap to other just send to new wallet and then swap it and send back to main wallet.

Exchanging one currency for another is often an attempt to get more free Bitcoin by buying the currency at a low price and selling it in the short term at a high price.
Both CEX or DEX have advantages and disadvantages that vary depending on the purpose of trading, and sometimes you are forced to use DEX because there are no alternatives or to use CEX due to the various advantages.
Most of the risks are related to the loss of capital, so your planning must be sound.

The swapping option is often seen in cold wallets and soft wallets.Swapping is the conversion of one coin to another, you can also convert a crypto to USDT or USDC or BNB.Swapping is often done for tokens that are not available on regular exchanges. Often they are exchanged from one coin to another on a uniswap or pancakeswap.Whenever you get free tokens from somewhere, you will definitely swap it for a good token.Whenever you get a chance to swap at a good price, do it. Sometimes the price falls, then you should wait a bit and sell when the price improves.

Most people convert it to USDT so the best way is to convert to Usdt and buy another token.Scammers are everywhere so any website on Google should be entered only after being thoroughly vetted.Swapping to the wrong link can result in the loss of all your tokens and can easily be stolen by a scammer. In many cases most of the people end up losing their assets during swapping due to visiting such wrong links.
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Simply put, swap is an upgraded version of DEX exchange. if the DEX exchange still uses the net to make swaps. DEX swap uses a liquidity pool to maintain price stability and transactions between sellers and buyers. The price cannot be higher or lower when selling or buying is displayed unless the price is the real time price. every movement becomes the final price and it cannot be negotiated. what I understand from swap is like that. this is simple. in profit I think it's usually used in terms of shitcoins looking for short profits with tokens on that blockchain.

1. If there's no other way on acquiring those coins, then SWAP would be only your option. Expect for some gas of course
2. I dont see any profitable swapping unless if the price gap or movement is relevant
3. Common swap sites, Uniswap and others.
4. If there would be options then that would be the best way on acquiring a coin or whatever you do want
5. Floating transaction - caused not enough gas or not credited balance
6. Always deal with legit swap sites, use recommended fees to avoid stuck transactions

If you have doubts on a certain swapping then you could be always able to ask onto this community.
We are highly reactive when it comes to scams or whatever correlated to it.

I don't know where you got this definition from, but swapping is the exchange of one token to another in the same blockchain, and exchange is exchanging coin to another one in a different blockchain, but since most of exchanges in decentralized via Uniswap or pancakeswap are tokens in the same blockchain, we see the term common in Those platforms and exchange term or convert term in the central one.


You mean phishing attacks? Yes, they are common and not limited to cryptocurrencies.

Yep, it's totally different. I think what OP want to mean is using different network and as you can see, OP mentioned cold wallet, means OP is using some smart contract networks like Ethereum or layer-2 networks where Decentralized Finance (DeFi) exist and you can easily swap your different altcoins to another altcoins without creating an account to centralized account anymore.

I will summarize one answer to all your questions.

Simply put, swap is an instant exchange where you cannot make buy orders or sell orders but the transactions you make are based on the current price. This trading method is to invest and then sell or buy instantly. How swap exchanges can maintain prices in many transactions is because of the existence of liquidity pools. This was discussed several years ago during the high APY staking trend.

Well, I think it is. Obvious, I swap my assets from another if for example I need other asset or coins to use in some other things for example BTC to USDT, I swapped some of my BTC or satoshi to usd so thaat I could buy other coins, or I want to make my profit in stable asset which is USDT. Or for example in crypto games, there is a specific coins then swapping from BTC to another is the way.

Yes? Maybe? Well there will be a slight difference if you swap a coin from another, lets say you have $100 and you want to buy a specific coin like ethereum or BTC, then when you saw that your $100 grows more then swapping into another coins which is more stable will be profitable and a good option to avoid your profit to get back again or avoid the volatility of a coin like BTC


Swapping coins into another is not a form of trading or making profit or money, use it only if necessary as some exchange requires a fee when you do swap, also be careful on what exchange you will use there are some scam exchanges scattered around there so be cautious.

Point no 1, is so obvious. Because we want another coin. 2, it depends on us. As for the indicator, there are prices that you can see on your screen. You can refer on that to determine if you are going to be profitable once you do a swap or not. 3, usually swapping features are on a DEX but I don't really use them.

I'm more of a CEX user. 4, yes, you need to convert into some other coins first in order to achieve the pairing that you want. 5, risks for doing swaps is that we can end up paying more in the fee. Or in short it may not really be profitable. But other risk would be is about the platform that we are using, if they are legit or not, or if they have been hacked lately. 6, just read more and apply it.

I exchange one coin for another coin to make a profit, like selling bitcoins for stable coins or fiat so that I can withdraw the money to a bank account or buy other coins.
If market conditions are declining, I will exchange my stablecoins for altcoins or bitcoin because I can buy the coins at a low price.
I use CEX to exchange coins and if I don't have them on CEX, I look for them on DEX. Before exchanging the coins, I will check which market the coins are sold on so that I can immediately send the coins to that market to exchange them for the coins I want.
The risk we may face is that the coins we have exchanged could rise high while we have exchanged them for other coins.

When it comes to timing it, it would be really hard. It is best that you know the current market direction or market condition when you are swapping it. You could research when you are going to do it.

The reason you would swap is to make money unless you want to give your money away.

DEX would be ideal. There are a lot of self-custody exchanges now to prevent loss of money from hacks or scandals.

For beginners, it's best to do research first before buying anything.

I use them all (CEX,DEX and of course Crypto wallets). In talking about the actual risks in Dex and swapping also has its own risks. Because there are many cases of someone losing assets in their wallet after swapping an unknown coin or token that suddenly appeared in the victim's wallet. Beginners sometimes don't realize that it is a kind of fraud which when swapped will give the fraudster access or something like that to our wallet. And that's quite dangerous. So my advice to beginners is not to randomly swap on any Dex that is not trustworthy and also not to randomly swap coins that suddenly appear in our wallets sent by fraudsters to our wallets. Maybe that's all because other things have already been answered by others here.

I very rarely make swaps in my wallet. But I've done it a few times. But to buy a token on a certain network that is not yet registered on CEX.

Honestly DEX was the loveliest thing in existence if it worked a bit better. I have used them during the big 2021 bull run, and it felt great however it was not sustainable. The fact that it is not centralized means that if someone could find a loophole, they will abuse it and that is exactly what happened, there were a lot of "bots" that basically traded to erode the price of anything they can find if it means they were making money, and people couldn't really stop them, it would require a lot more money.

This is why I turned back to CEX, it is simpler in logic, there is no LP or anything, you just have the exchange and they take care of anything, it's easier and it's more secure that way and protects the interest of the investors.

There are different reasons why I normally swap coins and most time is because of the market volatility.
The market can make us not to be able to take our profits as fast as possible if we don't have a medium to swap coins.
The swapping button had help lot of investors to convert their coins to stable coins so that market volatility would not affect it.
The market volatility can take us unaware of the imminent fall or rise of the price of the coin we are holding.

   The swapping of coins here with cryptocurrency is like a second version of the method of conducting trading activity. There are other times that the coin you want to trade is not listed on the spot and instead is listed on the Dex platform, where swap is usually the method of trading on Dex.

   Although there are other Cex platforms that have swapping features, like Binance recently, if I'm not mistaken, there are other traders who are also looking for it for other transactions like bridging and others.

Well, if you see that the coin has exhausted itself for growth and the price is preparing to go into correction, then you need to sell such a coin and invest the resulting profit in such a coin, the price of which is at minimum values. But you need to carefully choose a coin so that instead of a coin whose price is at the minimum values, you do not buy a "dead" coin.

1-2. I swap it to another coin when it's not prioritize by the dev.
3. I've tried trust wallet one time.
4. I always convert it to USDT if it doesn't have any pair to a certain coin that I like.
5. Probably the fees, sometimes you'll be hacked if you use an unfamiliar platform or exchange.
6. Don't just randomly swap coins just because you wanted it. Always do some research first.

I have never done it, I strictly hold bitcoins.

I use the Electrum wallet to keep my bitcoins, and it does not have a swap feature.

You may swap to an altcoin that suddenly starts losing value, you may swap to an altcoin, and then boom! bitcoin surges, you miss out too.

Swapping is not always necessary.

If you are talking about swapping then I am self-proven because I have swapped via air drop and have had a lot of success. So hopefully you can opt for Airdrop when it comes to swapping.

Completely agree with you on almost every point. DEX is the best thing to happen in crypto but at the same time, there are issues because you need to pay gas every time. Whereas in Binance or any CEX, you can keep the funds and trade without having to pay gas fee every time. I know it's not ideal because we should control the funds but for a small trader, paying a gas fee every time is a menace. Another issue with DEX is that I don't see any DEX offering futures or leverage trading.

I use swaps like fixedfloat, changenow often when I need a quick exchange without having to wait for many confirmations (as these swaps work on 1-2 confirmations) and it's easier to use them.

If the amount is big, I deposit to the exchange and follow the longer process though because these swaps charge ~1% fee every time and it's ok for a $50 swap but not ideal for a $5000 swap.

I.may not be able to provide an answer to all of your questions but then I will make an attempt to giving an answer to a few, there could be several reasons why some persons would want to swap their coins to another one of which could be for volatility and a possible anticipation of such coins experiencing a bearish movement so these can be a reason they want to swap their coins because no one would want to be on a coin that keeps depreciating and causing them to further loose money, using a cex or dex is dependent on your preference and where the coin you are swapping to is available and can be found, some coins found on cex may not be found on certain dex same applies the other way round.

First as a trader or an altcoin holder for you to buy coin you need centralized exchange to make deposit from your bank to the exchange account after which you can buy the coin you choose to buy from that exchange depending on the pairs of that coin if it's listed in that exchange. If that coin is not listed in that exchange then you have to make provision for 0x wallet, which can be MEW or Trustwallet, Metamask wallet maybe any other wallet to supports Erc20 and BSC network to buy BNB or ETH from the exchange and send to your wallet after which, you can connect your wallet to DEX that is listed the coin you want to swap your BNB or ETH to the new coin you need to swap.

Naturally using DEX is very risky so, to me i do encourage only sending the little amount you want to use and trade with the wallet than using your entire storing wallet to go connect with any DEX, this could get your account compromised and your coin can be made away if you don't know the dex you are connecting your wallet. Dex is important to you if you don't want to reveal your identity to CEX because you wouldn't know what they will use your document to do after submitting to them.

Another alternative means of funding your wallet is through p2p you can contact those fellow that offers that services over from your local board maybe they could be in need of fiat, all you will do is to send them fiat while they send you your desired coin to the wallet address you will be providing to them.

DEX ( Decentralized Exchange) you have privacy and nobody will monitor you, you operating within your wallets. In summary you have authority over your asset.
CEX (Centralized Exchange) you have no access to your coin, they control and monitor your transaction, your trade and you submit kyc to them before having access to trade and do withdrawal from them. Don't have authority over your assets.

1. i need to swap when as like i own a crypto which is swappable with bnb,eth or usdt then i am using swap.
2. it's not depend on with profit or losses, many others reason i need to use swap.
3. both of trading, but when it's related with dex then it's swap, on the hand if you will use cex then it's called trading. i used both.
4. when i will find an another alternative way.
5. no risks if you do it in the trusted platform.
6. before swap need to learn properly how it works.

You swap like you're paying for one token with another. That's what swapping is, basically. However, it can be done across chains. That can be the addition to the buying or selling definition thing.

You just have to be sure to check the commission/fee when swapping and be sure you're using the chain with the least charges. Charges differ across chains. You can't compare what it takes to swap on BSC chain to ETH, of course. Always check that do you don't regret after the deal is done.

 

I think convenience is the main reason why people swap coins directly from their wallet as it eliminates the processes and time involved in sending the coin to an exchange. I usually send to CEX or make use of DEX like Uniswap or Pancakeswap to swap directly from my wallet depending on the coin, but I stay away from most wallets that have in-built swap option and the reason is because of the sad experiences encountered by users of Exodus wallet where some of them were doped after initiating a swap on the desktop wallet. I don't want to find myself in this kind of ugly situation.

To read about it, check out this topic created by 1miau: Risks of the Exodus Exchange function ("CoinSwitch Scam") (https://bitcointalk.org/index.php?topic=5247157.0)