The method of exchanging one crypto asset with the other is called token swap. One token can be used to buy another token in exchange. Depending on the type of platform being used, there are different types of token swaps. Token swaps can also be seen as a form of crypto trading where traders are allowed to exchange one crypto token for another with the help of a crypto exchange. This process is conducted with the help of an automated system available on the blockchain network.
The token swap is a great method for portfolio diversification. The traders can easily diversify their portfolios without selling or buying into fiat currencies such as the dollar or Indian rupee.
For swapping tokens, the user is required to register their wallet addresses. Trades that occur by swapping tokens on token swap services often have lower transaction fees as compared to the ones done using crypto exchanges. Examples of platforms where Token swapping takes place are Airswap, Uniswap, PancakeSwap, etc.