Converting cryptocurrencies is also called swapping in the crypto space. Many crypto platforms have a swap feature because it allows users to easily and conveniently switch from a volatile token to a stablecoin or even convert crypto to a fiat currency.
If you’re new to crypto or have heard about swapping but don’t know how to do it, this definitive guide is for you.
What Is Crypto Swapping?
Crypto swapping refers to the process of directly converting a specific cryptocurrency for its equivalent value in another cryptocurrency, e.g., swapping Bitcoin (BTC) for USD Coin (USDC). And when we say “directly,” it means there’s no mediator involved in the process. You don’t have to go to a financial institution or a regulating body or even use another currency to swap your assets for the crypto you want to use.
What’s the Difference Between a Crypto Swap and a Crypto Exchange?
Crypto users sometimes use the terms crypto swap and crypto exchange interchangeably, but they’re nowhere near the same.
As mentioned, crypto swapping is a process that allows you to convert one asset to another to potentially preserve losses, build a portfolio, using specific crypto as a payment method for shopping, dining, availing services, or any other reason. On the other hand, a crypto exchange is a platform where you can buy, sell or trade crypto based on their real-time market price. Some examples of crypto exchanges are here.
Which Platform Can I Use to Swap Crypto?
As mentioned, there are a lot of crypto platforms that contain crypto swap features. You can choose from crypto transfer apps, crypto exchanges, non-custodial exchanges, currency-swapping sites, external wallets, and more.
How Does Crypto Swapping Work?
The process of crypto swapping may differ based on the platform you use. For instance, some platforms allow you to swap crypto in just a few clicks – by simply choosing which crypto you want to swap for which asset and entering the amount involved. Then swap fees will automatically be charged. Some others require a few more steps, which may include requiring the purpose of your swap, etc.
A Step-by-Step Guide on Swapping Crypto
To give you an overview of how to actually swap crypto, we’ll use the entire process of swapping crypto in Kasta, a crypto payment app, as an example.
- Sign in on the app;
- Choose the crypto you’d like to swap from the list of assets and tap. For instance, BTC;
- Once you’re on the BTC screen, tap the Swap icon;
- Choose the crypto you’d like to swap BTC for – for instance, USDC;
- Manually enter the amount of BTC you’d like to swap for USDC or choose the percentage of the number of coins you’d like to swap (10%, 20%, 50%, or 100%);
- Continue with your pin code to confirm the swap;
- That’s it! Wait for your USDC to reflect on your wallet.
How Much Are Swapping Fees?
Swapping costs may vary per platform based on specific rules they follow. Several platforms charge based on the amount of crypto you swap and which assets you swap them for.
Some charge as low as 0.01%, and others charge up to more or less 5%.
How Long Does Swapping Crypto Take?
Again, it depends on the specific platform you use. For some crypto apps, it’s instant. For a few exchanges, it takes a few seconds. For some, it takes a few minutes, and for others, a few hours to several days.
Which Cryptocurrencies Can I Swap?
Generally, as long as the coin or token is available in the platform you use, you can swap them for another asset available in the platform. For instance, in the Kasta app, as of writing, you can swap BTC, Ethereum (ETH), Polygon (MATIC), Binance Coin (BNB), the KASTA token, Tether (USDT), USDC, and Binance USD (BUSD).
Is There Such Thing as Swap Trade?
Many crypto users ask about swap trading, but the reality is it doesn’t exist. Swapping and trading are two different things. The purpose of the former is to convert assets directly, while the latter is to buy, sell, or trade assets for potential earning opportunities.
The Bottom Line
Swapping assets is common in the crypto market, but the exact process of doing it, the time it takes to complete a swap, and the swapping fees involved could differ for each platform. Hope this helps!
