How does a swap work in the context of digital currencies?

1 answers

• May 12, 2022 · 3 years ago
  A swap in the context of digital currencies is a transaction where two parties exchange their cryptocurrencies. It can be seen as a trade between two individuals who want to exchange their digital assets. The process involves agreeing on the amount and type of cryptocurrencies to be swapped, as well as the exchange rate. Once the terms are agreed upon, the swap can be executed through a decentralized exchange or a peer-to-peer platform. Swaps are popular among cryptocurrency traders as they offer a way to diversify their holdings and take advantage of market movements. They are also considered more secure and private compared to traditional exchanges.
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