Topic: Swap. Why and when you do swap your coins? (Read 306 times)

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")

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.

 

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.

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.

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.

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.

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.

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.

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.

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.

   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.

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.

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.

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.

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 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.

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.

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.

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.

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.