How do cryptocurrency swaps work?
It’s needless to say that it’s less time-consuming and cost-efficient to perform crypto-to-crypto exchanges than converting a cryptocurrency to fiat before buying another cryptocurrency.
Cryptocurrency swap services such as ETC Swap may come in handy when trying to perform a trade between two cryptocurrencies with low liquidity. Swapping crypto is easy, fast, affordable, and secure.
If, for instance, you would like to trade ENJ for CHR, you would have to first exchange ENJ for a more established coin such as ETH or DAI and then buy CHR using ETH or DAI. This is a long and not so effective process. You would also have to consider the volatility of the prices, resulting in a loss while performing these individual trades.
To counteract this deficiency, trading platforms implemented the instant swap feature, allowing traders to change one crypto for the other instantly.