Crypto Swap services present an efficient and cumbersome free way of swapping crypto based on different blockchain networks. Without these services, crypto traders would have to create an exchange, sign in and place an order every time they would want to switch cryptos. This would have been an incredibly inept process, let alone the time consumed in swapping crypto. Traders would be required to create multiple accounts and go through the verification and security procedures before being granted the go-ahead to transact on these platforms.
Crypto-swapping platforms step into this space by connecting into exchange APIs and automatically swapping coins to ensure efficient and straightforward crypto swap. This guide will look into the mechanism of crypto swaps as well as the best crypto swap platforms available in the market today.
As mentioned earlier, crypto swap refers to the premise of moving cryptocurrencies from one blockchain to another, usually using a predetermined rate. Sometimes, swapping cryptocurrencies, especially in instances where coins were on the initial blockchain, becomes incompatible with a newly launched blockchain network- i.e., employed by developers when they want to move users from one blockchain to another.
Crypto swapping is usually done when developers want to base their tokens on a new blockchain. When a user initiates a crypto swap, the swapped cryptos from the initial blockchain are burned at a predetermined rate in exchange for coins from the new blockchain. Once a currency has been swapped and burned, it can never be redeemed back by a user, as trading a coin is a continual process.
Cryptocurrency swapping can also be a funding mechanism for upcoming crypto projects. This is usually done by inflating the coin/token supply of the new blockchain and setting aside an amount of the new token, which will later be given to swappers to include any coin such as Bitcoin or Ethereum.
It’s not only projects that want to start working or transfer…