When I say swap I don't mean the token swap like uniswap but swap services like simpleswap

What's the difference between the token swap Dapp and the Swap service for coins?

On Dapp application you run it on a blockchain to swap between the tokens that are minted on that blockchain, for example UniSwap for the ERC-20 tokens. On certain platforms you can you a bridge to trade between protocols but still you are dealing with tokens.

Swap services are not limited to token but are services where you can swap one CryptoCurrency for another.

For example, exchange BTC for ETH

We are taking about Swap services here

What is the use?

You can select what you want to send and what you want to receive and the service with give you the rate at which the are offering to do a swap.

You provide the receiving address and send the Crypto you want to swap to the address provided by the platform.

As the transactions are confirmed you receive the Crypto you wanted.

Pros

• It is quick

• It is easy

• It doesn't require KYC

• It involves only 2 transactions

• It's directly from wallet to wallet

Cons

• Rates aren't as good as the exchange

• You have to be careful with the addresses

• No fiat support, you already need Crypto to

Trading on exchange

In contrast to the swaps there are centralized exchanges like Binance.

Where you send the Crypto or your fiat currency and buy and sell the provided pairs.

Pros

• Large liquidity

• Easy to use

• Leverage trading available

• You can set you rate and wait for the price hit your target

Cons

• Need KYC (at least the most of the does)

• Non-custodial holding (not your keys not your Crypto)

• Exchange outages during high volume

Which one is better?

Like most of the things in the CryptoVerse, it depends on the scenario.

Firstly do you want to just change and hold your Crypto or do you want to make a profit from trading?

If you are looking to trade

Then use a exchange as it will let you set trade price and leverage your holdings

If you need some crypto to use or hold

You can simple swap them directly and avoid the unnecessary steps and withdraw fees.

This is most valuable if you are just swaping small amounts as many exchanges have a withdrawal limits and fees

Whereas a Swap service can even let you do a trade for $10-$20

Here's an example

I have some BitcoinCash (BCH) that I got from read.cash and noise.cash, now I needed to transfer some of my NFTs from the market to my personal wallet. But I didn't have enough ETH for it, and we all know how notorious the ETH fees can be.

So I used SimpleSwap (not sponsored or affiliated) and converted some of the BCH I got from read.cash and noise.cash and converted it into the minimum amount of ETH that was allowed on the platform and with that ETH I was able to transact with the NFTs that I wanted to move.

Why would I sell my BCH?

Well you need to sell and buy Crypto depending on my reasons and like I mentioned in my example above I needed ETH for my NFTs.

Or you may also like some coin that you really want but don't want to go through the KYC at an exchange.

But moreover, if we just keep holding a coin (even BCH) and don't do anything with it and expect it to raise in price then it won't happen.

The price doesn't raise and fall magically, it is derived from its utility which influence the demand and supply and more importantly the volume that is being moved.

If you have a need then use your coin and get the utility it is intented for don't just sit on it.

But yes, keep it moving. Receive Crypto Send Crypto Use Crypto only then our coin can grow.