Crypto swaps appear simple: choose your tokens, confirm the trade, and you’re good to go. Alternatively, you can just buy crypto with a credit card. However, in that process, you can still make many mistakes that could hinder the outcome of your trade on Crypto Swap.
Beginners face the greatest dangers, such as overpaying fees, selecting the wrong tokens, or using the incorrect platforms. Even experienced traders confront these dangers, particularly when dealing with unknown ecosystems or trading platforms. To avoid potential losses and enjoy your crypto trading experience, you must first educate yourself on these pitfalls, regardless of the group you belong to Crypto Swap.
1. Swapping Without Checking Token Contracts
Traders frequently make the mistake of swapping without first checking the token’s contract address. Every token on the blockchain has a unique contract address that identifies it on the network, and changing to the wrong token address might result in a loss of cash.
As a general rule, you should always double-check the correct address on platforms like Coingecko or the token’s official channels (X account, website) before swapping. Copy and paste the confirmed address into the exchange, and then proceed.
Scammers often create fake tokens that look like legitimate ones, copying their name, symbol, and logo. These fake tokens may appear identical on exchanges, but once you swap them, the funds are usually unrecoverable because the scammer controls the contract. Contract addresses make all the difference, and they must be verified prior to any swap. Even experienced traders have fallen victim to these scams, particularly those involving newer or less popular tokens. Still, you can encounter them even during Bitcoin purchases Crypto Swap.
2. Using the Wrong Network for a Swap
When making a swap, always confirm that you are on the appropriate blockchain network. One way to get stuck as a beginner is to attempt to swap on the wrong network. Trying to swap on a network where you don’t have your tokens will be a complete waste of time and effort because many popular tokens are available on several networks of Crypto Swap.
For example, Ethereum (as an ERC20 token), BNB Chain (as a BEP20 token), and Solana (as an SPL token) are just some of the networks where USDT is available. You can only exchange USDT for assets that are part of the Ethereum chain if you possess it on Ethereum. Attempting to swap it on BSC or Solana will fail as your USDT is not available on those networks.
You may even lose funds if you attempt to transfer tokens from one network to another. To safely move your funds across various networks, use a cross-chain bridge. They operate similarly to swaps, but the only difference is that you move funds across different networks.
3. Ignoring Slippage Settings
Chances are you’ve heard the word “slippage” or encountered it on a decentralized exchange during a swap transaction. You most likely ignored it and continued trading. However, by doing so, you risk exposing yourself to one of the most costly crypto mistakes.
Setting the right slippage tolerance is necessary for avoiding failed transactions, extra gas fees, and losses caused by price impact and frontrunning attacks. If your slippage is too low, transactions may fail, while high slippage can lead to significant losses.
4. Swapping Tokens With Low Liquidity
The speed at which an asset can be traded for another, typically cash, is referred to as liquidity. Large volumes of buyers and sellers trading the token pair are indicated by high liquidity, which could lead to quicker and more effective transactions. In contrast, low liquidity is dangerous and might cause you to lose a large amount of your money.
It is challenging to trade a pair with low liquidity since you may run into problems like unsuccessful transactions, significant slippage, and incomplete fills. A significant sell-off may also cause the token’s price to drop precipitously, from which it may never fully recover.
To mitigate these risks, ensure the token you’re buying has enough liquidity and can be swapped into other cryptocurrencies or stablecoins such as USDT or USDC.
5. Skipping Trusted DEX Aggregators
Selecting the best DEX can be challenging because there are so many to choose from. You need to think about things like cost, effectiveness, and token accessibility.
Token prices vary by DEX, and you may be using one with high pricing while unaware that there is better pricing elsewhere. This is where DEX aggregators such as 1inch and Jupiter come in. These aggregators query numerous DEXes simultaneously to locate the best trade route for you, ensuring the lowest price, the least slippage, and the most cost-effective transaction.
DEX aggregators save you time and money, as well as the trouble of manually monitoring each exchange by comparing rates across them in real time. If you trade without an aggregator, you may be settling for greater fees or lower prices.
6. Paying Too Much in Gas Fees
When the network is crowded with high transaction volumes, gas prices can skyrocket, making swaps and transfers far more expensive. To avoid overpaying, plan your transactions around periods of low activity, such as weekends.
If you want to save even more money on gas, use blockchains with minimal transaction fees. Solana and BNB Chain are ideal for this scenario as they offer relatively cheaper swaps than their counterpart, Ethereum.
Alternatively, certain centralized exchanges (CEXes) do not charge gas fees for transactions on their platforms, which is why some users prefer to stay with them.
7. Trusting Fake Swap Platforms or Pop-Ups
The crypto space is filled with sophisticated scams mimicking legitimate swap platforms. These phishing sites have nearly identical URLs to trusted platforms (like un1swap.org instead of uniswap.org) and feature counterfeit MetaMask pop-ups requesting your seed phrase or malicious “Connect Wallet” buttons that approve transactions, giving scammers complete access to your funds.
To protect yourself, always verify the platform URL character by character before connecting your wallet. Bookmark official websites rather than using search engine results, which can be manipulated to show scam sites at the top. Legitimate platforms never ask for your seed phrase, and unexpected connection requests should immediately raise red flags. Taking these extra verification steps can save your entire crypto portfolio.
Ready to Make Your First Clean Swap?
Getting started with your first clean swap is simpler than you would imagine. Begin by choosing a reputable decentralized exchange or an aggregator that suits your needs. Ensure you have a compatible wallet that connects to DeFi protocols, e.g, Phantom wallet or Metamask. Next, deposit into your wallet the crypto you intend to swap, along with extra to cover gas fees. Connect your wallet to the DEX platform and confirm the token you intend to swap to.
Before confirming the transaction, double-check all the details, such as token amounts, contract addresses, estimated gas fees, and review the slippage settings. You will most likely get a confirmation pop-up from the trading platform to display how the transaction will proceed, in order to avoid surprises. Once satisfied, confirm the swap and receive your new tokens in your wallet.
