In the context of trading, swapping tokens refer to the exchange of cryptocurrency that you already have for another. It doesn’t involve any crypto-fiat exchange.
Swapping tokens can be done with the help of swap service providers/ Decentralized Exchanges (DEX).
Note: You can only swap tokens of the same standards in both MetaMask and DEXs. For example, You can swap ETH for another ERC20 token, such as WBTC, USDC, DAI, etc. If you want to convert your cryptocurrency from one to another (for example, Bitcoin to Ethereum), you can do so in Binance, Coinbase, Kraken, or Changelly.
MetaMask gives the best swap price by combining all its decentralized exchange aggregators and individual DEX’s quotes whereas, in individual DEXs platforms such as Uniswap or SushiSwap, the best price is chosen from their own liquidity pools.
Why should I swap my coin for another?
To diversify your portfolio: Putting all your eggs in one basket is not always a good choice. Many people prefer to diversify their assets; if you are one of them, you can easily diversify your crypto portfolio with the swap feature.
To Escape from volatility: The crypto market is well-known for its crazy moments. Most of the time, it won’t give time to think to take a certain decision.
If you want to escape from such volatility, you can swap your coins for stable coins. Stable coins give you enough time to think and reflect.
To make more profit: If you make solid predictions about the market and have a bit of luck, you can bag more money by swapping your coin at the right time.
To make passive income: Staking particular coins have an advantage over the others. You can create a passive income by swapping your coin for another.
Let’s get into the step-by-step procedure of swapping tokens. In case you didn’t create a MetaMask account, you can do it by clicking this: How to Create a MetaMask Wallet: A Step by Step Guide.
MetaMask’s in-built swap feature
MetaMask has an in-built feature for swapping coins. Users can swap their ERC-20 tokens faster with this feature.
Steps to swap tokens in MetaMask
1. Go to MetaMask wallet
Fire up your Metamask wallet extension.
Type your password and click Unlock.
2. Click Swap
After the successful login, you can see the MetaMask wallet’s front page.
Just under your wallet balance, you can see Buy, Send, and Swap.
3. Select token
Here, you can see two fields: the first one is Swap from and the second one is Swap to.
In the Swap from field, select the token that you want to swap and enter the amount.
In the Swap to field, select the token that you want to swap for.
4. Tune-up the Advanced Options
Next, you need to select or type your custom slippage percentage in the Slippage Tolerance section.
If the price has changed during the order confirmation and execution, that is called slippage. The Slippage Tolerance option will cancel the swap order if your max slippage percentage limit exceeds.
Hence, it is essential to set a slippage percentage. You can select from the options available or choose Custom and type your percentage.
5. Click Review Swap
After entering swap token details and setting the slippage percentage, you can click Review Swap.
Once you hit the Review Swap button, MetaMask will start to fetch quotes among its decentralized exchange aggregators and individual DEXs.
After a second, it will show you the best quote along with the gas fee. Note that the quotes include a MetaMask fee.
You can also see the other quotes if you want. But check it fast. Because MetaMask will fetch a new quote every 40 seconds.
If everything looks satisfied, click on Swap and wait until the transaction completes. That’s it, you’ve transferred your token successfully.
For a few coins, you need to add the token’s contract to your MetMask wallet, in order to see that. For further clarification on adding custom tokens, click here.
Swap tokens in any Decentralized Exchanges (DEX)
Swapping tokens in any Decentralized Exchange involves a few manual steps compared to MetaMask’s in-built feature.
As mentioned at the beginning, there are many DEX available in the market. Here we are going with Uniswap. The steps that are described here can also be applied to other DEXs as well.
Steps to swap tokens in any Decentralized Exchanges (DEX)
1. Go to Uniswap website
First, you need to go to the Uniswap website.
Click Launch App button on the top right corner of the website.
2. Connect your wallet
Upon clicking the Launch App button, a separate browser window will open. That is where you have to enter your details to swap.
On the top right corner of this browser window, you can see Connect Wallet. Click on it.
A pop will appear. Select MetaMask.
After selecting MetaMask, the connection will get initialized and the MetaMask extension will open up.
If you have multiple MetaMask accounts, select the one you want. Otherwise, leave it as such.
Click Next and then Connect.
3. Select token
Now, select the token that you want to swap in the first field.
Select the token that you want to swap for in the second field.
4. Enter the amount
After selecting tokens, enter the amount that you want to swap in the first field.
As soon as you’ve entered your amount, Uniswap starts to fetch the best price and will display it in the second field.
Just below the second field, you can see the gas fee.
5. Set slippage and transaction deadline
Once you enter the amount, you need to set slippage tolerance and transaction deadline.
To do this, click the setting icon. There you can see these fields.
The slippage tolerance option will revert your swap order if your max slippage percentage limit exceeds.
The transaction deadline option will revert your transaction if it is pending more than the time mentioned.
Hence, you can set these options according to your threshold. Leave the interface settings as it is.
6. Click Confirm
After entering all the details, click Swap.
A pop-up will show immediately, just check the amount you’ve entered and the fee details.
Once, you are okay with the fee, click Confirm Swap.
Upon clicking Confirm Swap, MetaMask wallet will pop up in which you have to click Confirm.
After the confirmation, your transaction gets submitted.
7. Check MetaMask
Wait for a few minutes. Once you get the notification from MetaMask, you go inside the wallet and check your balance.
You can also check the transaction details and status in Etherscan.
1. Why should I choose MetaMask to swap tokens over other DEX platforms in the market?
MetaMask combines multiple decentralized exchange aggregators and individual DEXs to give the best swap price with the lowest network fees. MetaMask,
- Always finds the best price
- Is the fastest way of swapping
- Protects slippage
- Reduces the gas cost
2. Can I swap my NFT in MetaMask?
No, you can’t. Since NFTs are non-fungible tokens (ERC-721), you can’t swap your NFTs on any platform.
3. Can I swap any coin in Uniswap?
No, you can’t swap all coins/ tokens in Uniswap. Since Uniswap runs on the Ethereum blockchain, it allows anyone to swap ERC-20 tokens only. Some of the popular coins/ tokens you can swap or swap for in Uniswap include MANA, SAND, MATIC, USDT, USDC, WETH, and WBTC.