Let me start off by explaining TOKEN SWAPPING!
Token swapping is the conversation or change of a tokens format or the migration of a token from one blockchain to another. Which means that an Erc 20 network token can be swapped to another Erc 20 network token, and also, it can equally be swapped to a token in a different blockchain.
Token swapping has been carried out by many crypto holders, mostly in the form of swapping shit coins to a more valuable coin, that has always been the aim I guess.
Not to criticize the good project but I honestly feel that it is more preferable for me to sell off my tokens and purchase a new one, rather than use a swap app!
Why do I say so?
Let me share my experience based on ignorance...
I've been a holder of a token called "1up" which is an Erc 20 network token, running as a native and reward token on a blogging platform called uptrennd...
A very good project if am to say, because that is where I literally started my blogging journey.
Now, someday sometime ago, When I desperately needed to get hold of the Tron(trx) token and I wasn't financial stable to get them on purchase, I had to use the swap app. The Token swap app is highly risky for crypto newbies who don't know the basics at which it runs on.
I turn to my parjar and luckily for me I had an huge amount of 1up tokens which I've been holding for sometime, and also luckily for me I was wise to an extent if not I would have sobbed bitterly that day!
I turned to the swapping app and imputed the token I wanted to swap and the one I wished to receive, which was 1up to trx.
How I was quite lucky was that I imputed a small amount for testing, but even tho am calling it a small amount it wasn't really small but I had to hold my self not to cry, I mean that's part of running a business, you got to expect a lose sometimes!
I imputed 500 1up tokens worth 3 dollars and some cents at that time, due to dumping I guess, now guess what happened?
I didn't pay attention to nothing at all, and once I clicked swap, figures change in my account estimated value!
$3 worth of token (500 1up) had just been swapped to a token (14 trx) amount worth just $0.37! I literally lost $3 as a whole, but what happened? Was it the liquidity fee that could have caused such massive drop in value? Loosing $3 at my first time to use the swap function is a lesson enough to pay attention to figures like liquidity fee and token price value.
I was just too upset to even look it up on Google with proper check up concerning the incident, I couldn't just imagine what would have happened if I imputed a much bigger amount.
So as a crypto newbie, if you are swapping a lower value token to a higher value one, always expect that twist to occur! Because it will never come out as the same price value of your previous token! $3 worth of doge coin can never come out as $3 worth of bitcoin, that's just not possible!
So, I honestly feel it's much better to sell your tokens and buy a new one, rather than swap it!
Hope that makes sense!
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