Difference Between Swap and Trade

in cryptoblog •  2 years ago 

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💁‍♀️Do you have any idea about the difference between Swap and Trade? Two important terms used in the crypto trading ecosystem are swap and trade. In general, a swap means exchanging a product between two parties, but in cryptocurrency, swapping means exchanging one cryptocurrency for another directly, hence the phrase coin swapping.

👉 Alternatively, trading means buying and selling cryptocurrencies (or coins) using exchange platforms. Investors prefer the coin trading method, but it is slowly being replaced by coin swapping recently.

💪 Swaps are agreements between two parties to exchange one asset for later, at an agreed-upon rate.

➡️ While trading or cryptocurrency trading means taking a financial position on the price direction of individual cryptocurrencies against the dollar (in crypto/dollar pairs) or against another crypto, via crypto-to-crypto pairs.

😉 Want to know more about the difference between Trade and Swap? Read our blog!

🌐 https://bit.ly/3V99jgz

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