Swap
Exchanging one cryptocurrency for another, typically done through a DEX or exchange.
A swap is the crypto equivalent of currency exchange. You send one token and receive another. For example, swapping ETH for USDC on Uniswap, or swapping USDC for SOL on Jupiter.
On a DEX, swaps happen through liquidity pools and are executed by smart contracts. The price you get depends on the pool's liquidity and the size of your trade. Larger swaps relative to the pool size will have more "slippage" (worse price).
On a CEX, swaps work more like traditional trading. You place an order and it gets matched against other traders. CEXs typically have deeper liquidity and less slippage for major pairs like USDC/ETH.
Related Terms
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates through smart contracts, allowing users to trade directly without an intermediary.
Slippage
The difference between the expected price of a trade and the actual price you receive when the trade executes.
Liquidity Pool
A smart contract holding paired tokens (like USDC/ETH) that enables trading on a decentralized exchange.
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