Token swaps are a fundamental part of the crypto ecosystem, allowing users to exchange one cryptocurrency for another seamlessly.
Non-custodial swaps have gained popularity because they provide greater security, privacy, and flexibility. By eliminating the need for third-party involvement, traders retain full control over their funds while accessing a wide range of tokens across different blockchain networks.
Read on to learn about token swaps and how they work.
What Are Token Swaps?
Token swaps allow users to exchange one cryptocurrency for another directly, often through decentralized exchanges (DEXs) or cross-chain bridges.
Unlike traditional trading, swaps eliminate the need for intermediaries, enabling seamless, often instant, transactions. They are essential for DeFi, providing liquidity and interoperability across different blockchain ecosystems.
How Non-Custodial Token Swaps Work
Non-custodial token swaps are made possible by DEXs and automated market maker protocols that allow traders to exchange tokens automatically using smart contracts.
For instance, you can swap SOL for BTC using Xverse. In the past, before tools like the Xverse Cross-Chain Swap existed, this process was considerably more complex and expensive.
How to Swap SOL For BTC Using Xverse
Now, let’s take a look at how you can cross-chain swap tokens using Xverse Swap.
Access the Xverse Web App
Open your web browser and navigate to the Xvese swaps app.
Connect Your Wallet
After logging in, connect your Solana wallet that contains the SOL tokens you wish to swap.
To do this, click on the drop-down menu, choose the wallet, and then click the ‘Connect’ button and follow the prompts from the wallet to grant access to Xverse Swap.
Then, connect your Xverse wallet to attach a Bitcoin wallet to the receiving side of the transaction.
Select Swap Pair and Enter Amount
Choose ‘SOL’ as the token you want to swap from and ‘BTC’ as the token you want to receive.
Enter the amount of SOL you wish to swap and click ‘Get quotes.’
Review the estimated BTC amount you’ll receive based on current exchange rates.
Confirm and Execute Swap
After verifying all details, click the ‘Swap’ button.
Approve the transaction in your wallet to initiate the swap.
Await Swap Completion
Depending on network conditions, cross-chain swaps may take 5 to 30 minutes to process.
Monitor the swap’s progress through the Xverse dashboard.
Once completed, the BTC will appear in your wallet, and you can view the transaction details in your swap history.
Final Thoughts
Thanks to the rise of cross-chain swap solutions like Xverse Swap, token swaps are much more manageable. By leveraging decentralized and non-custodial swaps, you can exchange assets across different blockchains while maintaining complete control over your funds.
Cross-chain swap streamlines the process, offering a faster, more secure, and user-friendly alternative. Whether you’re diversifying your crypto holdings or moving assets from one ecosystem to the next, cross-chain swaps provide an efficient solution.
As always, stay mindful of network fees, swap rates, and potential delays when performing transactions.