Swap. Why and when you do swap your coins?
Swap. Why and when you do swap your coins?
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.