All questions answered about token swapping
Welcome to the Token Swap FAQ on DappRadar. Token Swap is a feature on DappRadar that allows users to directly swap tokens on Binance Smart Chain, Polygon, and Ethereum. Here we answer the most common questions about Token Swap.
What is Token Swap on DappRadar?
Token Swap on DappRadar offers users the ability to swap their crypto tokens at the best available market prices. DappRadar uses 0x Protocol to search for the best possible trading opportunities for its users across a wide variety of decentralized exchanges. Our Token Swap allows users to swap tokens on Ethereum, Binance Smart Chain and Polygon.
How to exchange tokens?
- Depending on which tokens users want to exchange, they first need to select the correct blockchain: Ethereum, BSC or Polygon. Note that Metamask or another web3 wallet needs to be switched to the same blockchain as well.
- Users then provide the input token from their wallet in the top selection field, and select which token they wish to receive in the bottom one.
- Also state how much you want to spend. The system will automatically calculate what you will receive.
- Tokens that users want to spend from their wallet, will first need to be approved, which involves a paid transaction. After confirming the approval transaction, Token Swap is ready to exchange the tokens.
- Press “swap”, then also “Confirm Swap”. Again, your web3 wallet (i.e. Metamask) will open up to confirm the transaction. Your new tokens will appear in your portfolio shortly after.
How much does trading tokens on DappRadar cost?
During our Token Swap launch period, DappRadar doesn’t take a fee or commission. However, traders do need to keep in mind that transaction fees apply (commonly referred to as gas fees). The size of these fees depend on the activity on either Ethereum, Polygon or Binance Smart Chain, depending on which blockchain you’re using.
How do I know DappRadar gives me the best price?
DappRadar taps into the 0x Protocol API, aggregating liquidity from the best decentralized exchange on each blockchain. We offer you the best price by looking at, for example, Uniswap and SushiSwap on Ethereum, PancakeSwap on Binance Smart Chain and QuickSwap and SushiSwap on Polygon.
How do I know my money is safe?
DappRadar’s Token Swap uses 0x Protocol smart contracts. These are the best contracts out there, tested by both 0x Labs and blockchain security company Consensys Diligence. You can read the 0x Protocol v4 – specification and the 0x Protocol v4 – security audit by Consensys. We advise everybody to read, learn and understand about smart contracts, audits and cybersecurity.
What does it mean to Approve a token?
Every token you want to swap on a decentralized exchange, needs to be approved. This approval allows the smart contract to interact with a specific token in your wallet. You must allow the smart contract to check your token balance, and you must allow it to transfer the number of tokens you wish to trade. This approval mechanic is common, and also used on, for example, Uniswap and PancakeSwap.
Why does token approval cost money?
To approve a token, you need to interact with a smart contract and pay a small fee. Interacting with a decentralized blockchain always costs some money, as validators and miners work to keep the blockchain functional and need to be rewarded for their work. Depending on the blockchain you’re on and the activity of that particular blockchain at that moment, the fee can be a few cents up to a few dollars.
What tokens can users trade?
The Token Swap has specifically been designed to support ERC-20 and BEP-20 tokens. These are fungible tokens on Ethereum, Polygon and Binance Smart Chain. You can technically swap any token following the ERC-20 standard on each of these blockchains.
Can I swap BEP-20 tokens for ERC-20 ones?
No, you can’t. Token Swap only allows tokens to be switched within the same blockchain ecosystem. To swap tokens from Binance Smart Chain to Ethereum, requires bridge technology. Read a nice guide about bridging tokens here.
How long before I have my tokens?
When there’s not a lot of traffic on Ethereum, a transaction will be processed within 30 seconds. However, when the network gets busy, users will need to use higher gas fees in order to have their transactions processed. Binance Smart Chain uses a similar concept, but is generally cheaper and faster. It’s possible to give a transaction an extra push, by increasing the gas fees afterwards using Metamask. However, we’d only advise experienced users to do so.
Where do my new tokens go?
The tokens you’ve just acquired through swapping on the DappRadar Token Swap, go directly into your own wallet. However, they might not appear in Metamask. Metamask and other Web3 wallets support a whole range of tokens out of the box, but niche products will need to be added manually. In Metamask, go the the Assets tab and scroll all the way down. Here you will find a button “Add Token”. You will need to provide the token address to add a specific token to your wallet interface. Keep in mind, even though Metamask doesn’t show your tokens, that doesn’t mean they aren’t in your wallet.
How do I make sure gas fees are low?
Gas fees go up when lots of people use a blockchain. On the Ethereum blockchain you will see this more often. A transaction costs $1 when activity is low, but can become $20 per transaction at busy times. There’s nothing you can do about it, but simply wait it out. However, because of these high gas fees alternative blockchains like Polygon and Binance Smart Chain have become increasingly popular. Here you pay a few cents per transaction.
What is slippage?
Slippage is the difference between the price you want to buy and the price you’re actually buying a cryptocurrency. Because the market moves so fast, it’s very likely that a price indication made right now changes 10 seconds later. By allowing a few percent of slippage, you can guarantee that a token swap actually takes place. Slippage is common in cryptocurrency swapping, but also in trading of stocks.
Can I purchase tokens with fiat money, like dollars, yen and euro?
There are fiat on-ramps that allow you to purchase cryptocurrencies using for example a bank account or credit card. You can top up your Ethereum wallet using our fiat on-ramp. Simply login to DappRadar, connect your web3 wallet, and then click the “account button” in the top menu. A dropdown menu will appear with the option to “Buy Crypto” using a creditcard.
What tokens should I invest in?
DappRadar doesn’t give investment advise. We provide all kinds of editorial coverage of dapps, games, blockchain technology and tokens to help people learn more and discover projects. You can for example read our blog or keep an eye on the NFT markets. The DappRadar Rankings also offer an excellent method to discover need dapps, tools, games and projects. As always, DYOR.
Do I need to sign up to DappRadar to use Token Swap?
Short answer: No. However, our newsletter is a great way to discover new dapps and receive alerts about new airdrops.
Thank you, we hope you found the answer you were looking for. Please reach out to us if your questions are unanswered, and we will update the Token Swap FAQ accordingly.