While most crypto wallets and exchanges support thousands of assets, the average user maintains a portfolio of around ten cryptocurrencies. To exchange between these assets, users generally rely on three main avenues: centralized exchanges (CEXs), decentralized exchanges (DEXs), or blockchain bridges.
Centralized Exchanges (CEX)
A centralized cryptocurrency exchange is the most popular choice for crypto swaps because CEXs offer many token options and lower commissions. But there are trade-offs as well. For example, to exchange cryptocurrency, you must entrust your funds to the platform's wallet, whose private keys are not under your control.
This means that as long as your cryptocurrency is in this wallet, you do not have ultimate control over it. You lose your assets if the exchange is taken down, censored, or hacked.
Decentralized Exchange (DEX)
Another option is to use a decentralized exchange or DEX. You can exchange one crypto asset for another from the safety of your crypto wallet, where you control the private keys. However, there is a compromise: DEX protocols are almost always based on a specific underlying blockchain. Users can only swap tokens with the same blockchain foundation; for example, you can't swap BTC for KAS or SOL for SHIB.
So, while decentralized exchanges provide greater security by allowing you to control your private keys on your hardware wallet, their options are limited by the underlying network.
Blockchain bridges
A blockchain bridge enables you to transfer assets between blockchains, addressing one of the main issues with blockchains: interoperability.
Bridges create synthetic derivatives that represent an asset from one blockchain on another. If you use a bridge to send one Solana coin to an Ethereum wallet, the wallet will receive a token "wrapped" by the bridge and converted to a token on the target blockchain.
In this scenario, the Ethereum wallet would receive a "bridge" version of Solana that had been converted into an ERC-20 token — the generic token standard for fungible tokens on the Ethereum blockchain.
What are cross-chain swaps?
Cross-chain swaps are relatively simple: centralized platforms like ChangeNOW, Changelly, and OKX DEX/Bridge provide them as a service. Let's say you want to swap SOL for BTC. In this case, the platform offers a "rate" that includes a commission and sends your cryptocurrency from its platform wallet.
A cryptocurrency swap is a two-part transaction. On the one hand, you have a set amount of cryptocurrency that will leave your wallet and go to the swap provider. On the other hand, the swap provider will send you the desired asset in return. For example, the provider could offer to swap 0.01 BTC for 0.5 ETH.
To accept the offer, you must provide your Ethereum wallet address, where you will receive the ETH. You must also send 0.01 BTC from your BTC wallet to the address specified by the swap platform.
Swapping in Tangem
Tangem aggregates vetted swap providers directly into the app. This guarantees you are using official services and keeps you safe from phishing.
Verifying signature and transaction ID
The swap provider will receive your transaction and send back their cryptographically signed confirmation and the corresponding crypto. Tangem's secure element verifies the incoming transaction's signature to ensure the provider fulfilled the swap.
The ID of the incoming transaction is also checked to ensure that it matches the one you agreed to. Only that specific transaction can be executed. In short, changing any of those details would result in a different transaction ID, preventing the swap from being completed.
How to swap one token for another in Tangem
Here's how swaps work in Tangem Wallet
Go to the Tangem app.
Open the token page, for example, USDT, and tap Swap.
Enter the asset you want to receive, such as Solana (SOL). Tangem will automatically show you the provider with the best rates.
Tap the provider shown to view all available providers and their rates. If the assets involved in the swap are on the same network, both DEX and CEX providers will appear. If the transaction is strictly a cross-chain swap, only the CEX provider will be made available.
Tap Fee to choose the network transaction fees. You can choose between Market (average fee rate) and Fast (more expensive but offers a better transaction speed)
Tap Swap and enter your access code or biometric ID. Scan your Tangem card to approve the transaction.
Tap Status to track the transaction on the provider's page.
When the swap is complete, your account will be funded with the swapped token.
Why choose Tangem for cross-chain swaps
Simple and convenient: Tangem does the optimization work between DEXs, CEXs, and Bridges. And you don't even need to leave the Tangem app to enjoy this feature.
Best rates: Tangem can offer you lower prices by letting you choose from various swap providers.
Full control: No third party is required to secure your tokens while doing so. You remain in complete control of your private keys and assets.
Many tokens supported: Tangem lets you exchange tokens across different networks.
FAQ: Swapping in Tangem
Can providers in Tangem block the crypto swaps?
Swaps occur on exchanges (CEX & DEX) in accordance with their terms of service. Security-wise, swapping via Tangem is almost identical to swapping on exchanges. However, crypto swaps in our wallet reduce the chances of errors and other vulnerabilities associated with keeping your assets in hot wallets.
In what cases is KYC needed for CEX providers?
KYC requirements depend on the provider's terms of service. Tangem cannot define KYC rules and is not responsible for exchanges' actions, rules, security issues, or more. As a user, you can decide whether to trust the provider before using them. In the future, we will add more providers to give users more options.
Why are the commissions so high? Commissions on exchanges cover operational costs and security measures and contribute to the platform's sustainability. High commissions can result from liquidity, transaction speed, and network fees. DEX platforms might have lower fees but could face liquidity challenges.
The fee for swapping with DEX includes the swap provider's commission and the network fee. For CEX providers, the fee includes the service provider's commission and network fees for sending the token to and from the exchange to the user's address.
Tangem AG provides only hardware wallets and non-custodial software solutions for managing digital assets. Tangem is not regulated as a financial services provider or cryptocurrency exchange. Tangem does not hold, custody, or control users’ assets or transactions. Crypto transaction services are provided by third-party providers. Tangem provides no advice or recommendation on the use of these third-party services.
Staking and yield generation services are provided by third-party blockchain protocols and decentralized finance (DeFi) platforms. Tangem provides non-custodial access only. Earnings from staking are not guaranteed, may fluctuate significantly, and depend entirely on network or protocol conditions. Users participate at their own risk.
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