As a crypto trader, you would have seen a rise in an asset you do not own. This is often unavoidable. And situations like this can be pretty frustrating.
With so many cryptocurrencies in circulation, predicting which coin will experience the next meteoric rise is tough. However, each of these tokens is a possible investment opportunity and a profit avenue. Knowing how to swap properly can make a major impact as it could determine the total worth of the portfolio.
Undoubtedly, as with most people, we all see cryptocurrency as an investment, and with every investment, it is expected to produce a return on capital. So, with this in mind, I constantly replace underperforming tokens with those with strong ROI prospects, or I convert certain tokens to stablecoin while I wait to invest in an undervalued project in the hopes of making a profit.
Possible Reasons For A Token Swap
There are several reasons why I conduct a token swap. However, one of the most critical factors is to have a well-balanced portfolio. This allows me to diversify my portfolio and safeguard my crypto holdings from market volatility and price drops. As a result, a dip in a few token values will not influence the entire portfolio.
However, navigating market volatility and positioning myself for quick gains when I see profit possibilities in another token is the main reason I carry out a token swap. In fact, token prices frequently fluctuate or swing due to this market volatility. So, when the market price of a token changes, I take advantage of it and instantaneously swap to another token, providing me with some short gains from the quick rush of activity.
Swapping Limitations On Centralized Exchanges
Unfortunately, swapping tokens on centralized exchanges was quite a long process. For one, direct token swaps are often not permitted on centralized exchanges. Due to this, I am limited to swapping tokens on the spot market, which adopts the order book process that matches a buyer to a seller. So, for my swap process to be successful, the order book method requires the presence of a buyer at the other end of the transaction. This implies that in order to swap my token for another, I must put in a sell order that will be matched by a buy order that is exactly the same.
Sadly, this doesn't give me control over my swap process, as my token is held till my market price is matched. In addition, there are transaction fees I incur during the swap process. As I must first convert my cryptocurrency assets to fiat before utilizing the money to buy my desired token, I also bear transaction costs during the swap process. Due to the long two-step swapping process, I could not take advantage of the price movement, thereby incurring some minor losses.
Another drawback of centralized exchanges is the limited number of token pairs. Most of the time, there is no liquidity provision for such trades with low market capitalization because only popular tokens are traded.
Swapping On DEX Protocol The Solution?
So, from my experience with a centralized exchange, it was only a matter of time before I tried swapping my tokens on decentralized exchanges. Then, if not for anything else, I would have ultimate control of my assets and the swap process. Therefore, by eliminating the third-party policy of centralized exchanges and allowing self-executing smart contracts to help simplify the swap process, trading on DEXs gives me access to a secure and transparent marketplace without intermediaries.
Unfortunately, despite the potential of a direct token swap on DEX, I faced some difficulties. One of the most significant is that swaps are restricted to on-chain transactions. As a result, the majority of DEX platforms are network-specific. Pancakeswap, for example, commonly swaps Bep-20 tokens, whereas Uniswap swaps Erc-20 tokens. So, if I want to swap tokens from various networks, I have to go through the process of wrapping my token, which takes time and incurs some transaction costs.
Other challenges I faced with swapping on DEX include the platform's technicality, which is typically complex and not user-friendly, and the low liquidity spread for some tokens, which resulted in a significant loss due to slippage.
What Is The Best Swap Solution?
After having bad experiences with many exchanges, I searched for platforms that provide a better swap solution, where
- I can do away with the necessity for a two-step trading procedure.
- I can quickly do cross-chain swaps without having to wrap my tokens.
- I can enjoy a slick, simple, user-friendly, and straightforward interface.
- I can carry out a token swap without worrying about having enough liquidity for the transaction.
Consequently, after doing some research, I discovered the Cwallet platform (formerly CCTip) that ticks all the boxes of my needs and combines the best features of both custodial and non-custodial exchanges while giving users the power to monitor transactions by defining an acceptable slippage tolerance.
Surprisingly, no sign-up process was required because all that was needed to begin was to link my mobile number or third-party platforms such as Twitter, Telegram, Discord, and Reddit; there was no KYC process or other type of verification required.
Interestingly, I could do my token swap with Cwallet in two ways: via the website and app or via the Cwallet Telegram bot. So I can easily carry out my token swap using either the Cwallet swap tool accessible on my profile or the Cwallet Telegram Exclusive Bot.
With the various swap options at my disposal with Cwallet, I could easily benefit from price swings, take advantage of the market, and lock in some profits before the market experiences a correction. So, by effortlessly swapping your tokens on Cwallet, you would benefit from market volatility and improve your portfolio. All you need is a Cwallet account.
Cwallet Is A Unique Interactive Cryptocurrency Wallet That Combines Custodial And Non-Custodial Features. You Can Manage And Trade More Than 800 Cryptocurrencies In One Location. It Offers Security, Simplicity, And Flexibility.
Cwallet does not charge any deposits, withdrawals, and token swap fees. Therefore, using this wallet is absolutely FREE!
So, what are you waiting for? Download the Cwallet NOW.