Swaps in cryptocurrencies: what are they and why are they needed?

Swaps in the crypto world are like a breath of fresh air for traders. They allow for changing coins without unnecessary hassle. Simple and fast 🔄

Types of swaps in cryptocurrency

Swaps come in two types. They are completely different.

1. Exchange on a centralized platform

• Verification is mandatory
• The platform between you and the deal
• Your coins are temporarily not yours

2. Atomic Swap 🚀

• Complete anonymity
• Smart contracts with HLTC do all the work
• Coins seem to be in a safe with two keys

Types of Atomic Swaps

Cross-chain bridges connect different blockchains. It seems like magic 🌉 Exchanges work simpler. Without smart contracts. More convenient, but with more risk. Wrapped coins? This is when one asset pretends to be another in a foreign network.

How to swap coins

Creating a wallet. Refilling. Connecting to the platform. You select a pair. You sign. Done.

What are swaps for? 🤔

1. Profit from jumps 📈 The market is jumping. You catch the moment. You made a good profit.

2. Diversification 🛡️ Eggs in different baskets. Not so scary.

3. Passive Income 💰 Swapped coins, put them in staking. Money is coming in.

4. Freedom between blockchains 🌐 You won't get stuck in one ecosystem. Free wind.

Security in Swaps

With atomic swaps, things are not so clear. The main danger? Us. Our inattention. The information seems safe if the rules are followed:

• Suspicious links? No, thank you 🔒
• Check the addresses
• Be careful with the new platforms

Technologies are not standing still. By 2025, swaps have become safer. More efficient. Market participants can now fully utilize all these DeFi things 🌕