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What Are Cryptocurrency Swaps On Coinosh?
What Are Cryptocurrency Swaps On Coinosh?
Updated over a week ago

Cryptocurrency swaps refer to the process of exchanging one cryptocurrency token for another through decentralized cryptocurrency exchanges (DEXes).

A decentralized exchange (DEX) is a platform that operates on smart contract-enabled blockchains, such as Ethereum or Binance Smart Chain. It allows users to trade tokens directly with one another without the need for intermediaries or centralized control.

Here are some key points about Coinosh cryptocurrency swaps:

  1. Non-Custodial: When you use a DEX for a cryptocurrency swap, you retain full control of your funds throughout the process. The exchange occurs directly between your Coinosh wallet and the DEX, eliminating the need to trust a centralised entity with your assets.

  2. User-Controlled: You have complete control over the trade. You decide which tokens to exchange, the amount, and the price at which you are willing to trade.

  3. Maker and Taker Model: In a DEX, the exchange acts as both the maker and taker for the trade. This means that the DEX facilitates the matching of buy and sell orders to enable the exchange to take place.

  4. Swap Fee: DEXes typically charge a small fee for facilitating the swap, which is usually a percentage of the transaction value. The fee can vary but is typically around 0.2% to 0.4% of the trade amount.

  5. Autonomous and Independent: DEXes operate autonomously and independently on the blockchain, relying on smart contracts to execute trades. They are not controlled by a single entity, providing a decentralized and open trading environment.

Using a DEX for cryptocurrency swaps allows you to have direct control over your tokens, access a wider range of trading pairs, and participate in decentralized finance (DeFi) protocols. It provides an alternative to traditional centralized exchanges, offering increased privacy, security, and transparency in the trading process.

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