Swapping crypto tokens is one of the most useful and fun things to do in crypto. Lucky for you, Magic Eden makes token swaps easier than ever, even when you’re swapping coins across different blockchains.
Let’s swap a few minutes of your time so you can learn what swapping is and how to start swapping crypto like a pro.
Swaps are a way to trade crypto tokens directly on-chain without a centralized exchange.
Swaps exchange one crypto token for another without having to convert to fiat currency first, and can take place within one blockchain network or from one blockchain to another–eliminating the need for a centralized crypto exchange.
It’s as simple as selecting one token, let’s say, Solana (SOL), and choosing another token like USD Coin (USDC) to receive in return using a decentralized trading app. That’s crypto swapping in a nutshell. It isn’t rocket science, but let’s take a look at what’s really going on.
A crypto token swap involves you and another crypto holder exchanging tokens, typically using a decentralized trading platform or a wallet with in-app swapping like Magic Eden Wallet.
The swap is powered by smart contracts, making the whole process trustless– meaning the contract is executed by the underlying blockchain code itself without needing a traditional intermediary like banks to guarantee trust between participants.
When you start a swap, the smart contract locks in your tokens, double-checks the transaction details (like the amounts and token types) and makes sure the trade is good to go.
Then, it pulls the matching tokens from a liquidity pool (a collection of crypto tokens held within a smart contract on a decentralized exchange for facilitating trades) to get you the best price for the amount of tokens you want. Once everything’s all set, the contract is executed, sending the swapped tokens to your wallet and your tokens to the pool.
There are multiple types of crypto token swaps that operate in slightly different ways.
An on-chain swap refers to directly swapping tokens on the same blockchain, such as exchanging one ERC-20 token for another within the Ethereum network. Your tokens don’t leave the Ethereum ecosystem since they both exist on the same chain.
A cross-chain swap occurs when you exchange a token on one blockchain for another token on a different chain without using a centralized exchange. Instead, in a cross-chain swap, smart contracts are used to directly execute the exchange.
Bridging replaces a token you own for its equivalent on another chain to use in the new ecosystem. For example, you might want to bridge your SOL on the Base blockchain over to the Solana blockchain. Or you might swap for proxy tokens and wrapped assets, like swapping BTC for WBTC.
Token swaps have their upsides but also potential drawbacks. Let’s take a look at each:
The main benefits of swapping crypto tokens include:
On the other hand, the potential downsides of crypto swapping are:
Runes are a unique type of fungible token that are minted on the Bitcoin blockchain. Magic Eden’s Rune Swap allows you trade Runes for Bitcoin and vice versa. Here’s how you can do it in a few simple steps:
Head over to the Magic Eden Runes marketplace and connect your wallet.
Select the token you want to receive, for example, DOG•GO•TO•THE•MOON. Type in the amount in BTC you want to pay for the token and click ‘Get Quote’ to see how much of the selected rune you’ll get, as well as the average price and fees incurred.
Verify the swap details and press the ‘Swap’ button to execute the trade - the transaction will complete in a few minutes, max.
Swapping runes for BTC is much the same process.
Just click on the arrow pointing downwards, enter the amount of the rune you want to sell for bitcoin, and follow the same steps as above.
Through built-in cross-chain token swaps on the ME Wallet, you can easily swap crypto between blockchains without having to use a centralized exchange. That saves you the hassle of having to send funds to an exchange, selling them, buying the desired tokens, and sending them back to your wallet.
With the ME Wallet, you can cut the entire process down to a few seconds or several minutes tops.
After installing the wallet on your phone or desktop browser, open your Magic Eden Wallet. Before you start swapping, you’ll want to deposit some crypto from another wallet or simply buy one of several popular tokens available to purchase using a debit card.
Then, select the bidirectional arrow icon that says ‘Trade’ at the bottom, between the ‘Explore’ and ‘Portfolio’ icons.
Under the ‘Swap’ option, choose which token you’re offering to trade and the one you want to receive in return. Let’s choose BTC and ETH in this example.
Type in the amount you want to swap (either in crypto or its fiat equivalent), and the wallet will fill in the corresponding amount in the other token’s field.
Finally, select ‘Swap’ to confirm and you’re good to go.
Keep in mind that the ME Wallet deploys third-party API partners to carry out the token swap, so it may take a few minutes to finish. That said, the swap will run in the background, so you can go about your business and do other things while it’s being completed.
Token swapping is exchanging one crypto token for another. You can swap tokens either on the same blockchain or between different blockchain networks. There are multiple types of token swaps, including on-chain, cross-chain, and cross-chain bridging. We've written guides on Base swaps, and Solana Swaps for chain specific information.
In the cryptoverse, swapping refers to two sides exchanging their tokens with each other. This can happen between parties that are in direct contact or through a decentralized platform designed for swapping crypto or a wallet such as Magic Eden Wallet. When you buy a meme coin, a native token, or stable coin, you are performing a swap of some kind.
There are multiple places where you can swap tokens, but one of the easiest ways is through the Magic Eden. Thanks to its built-in token swap option, you can do this safely and seamlessly in just a couple of minutes–even if you’re swapping crypto across different blockchains. In addition to decentralized exchanges, many wallets have native swapping abilities. We've written overviews on many blockchain wallets, including the best Ordinals wallet, and Solana wallets.
Network fees for swapping crypto tokens depend on various factors, including market activity and network congestion. Typically, fees are higher during working hours when markets are busier. Conversely, these fees are lower when network activity is low, usually early in the morning or late at night. However, as the crypto market operates 24/7, using the U.S. working hours for reference might be the safest bet, as it’s one of the largest crypto markets by volume. It can be worth checking different chains’ fee trackers to see when the fees are at their lowest.
The information provided on this website is provided for general educational purposes only and is in no way financial or investment advice. Certain information may have also been provided to us or prepared by third parties; these materials are provided for convenience and are not an endorsement by Magic Eden. Magic Eden is not liable for any errors, changes or amendments to such information, including any actions taken in reliance on such information.
