What is atomic swap?

Atomic swaps, also known as atomic cross-chain trading, is a technology that allows the trader to trade two cryptocurrencies directly without involving any intermediary or trust, fulfilling the idea of having programmable and decentralized currencies and exchanging the assets digitally over blockchain technology.

What is swap crypto?

Swapping crypto allows you to easily exchange one crypto asset for another, either in full or small amounts. With no fiat currencies involved. It’s a fast and easy way to diversify your portfolio and grow your assets. How Swap works? Easily exchange one crypto for another in a secure environment using your Ledger hardware wallet.

What are cross-chain atomic swaps?

Cross-chain atomic swaps are cryptocurrency exchanges or trades between cryptocurrencies that use separate blockchains. Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs.

Why do we need special wallets to conduct an atomic swap?

Special wallets or exchange services are needed to conduct an atomic swap because the technique is still being developed and refined. Each cryptocurrency is supported by a blockchain, designed only to accept transactions in specific tokens. For example, Bitcoin (BTC) has a blockchain, and ETH (ether) has another.