What you should know about Token Swap and Token Migration

If you're using a decentralized crypto exchange like Trustwallet or Metamask, you will see the Swap feature which allows you to exchange cryptocurrency for another crypto within the same blockchain network.

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Token Migration isn't that common for crypto investors or traders, because it is done by the blockchain network that owns the token which this post has explained in detail for you to understand better.

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Token Swap

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Some exchange call their own Coin swap which is still the same thing as Token Swap which is simply the process of you exchanging one crypto for another crypto. For instance, let's say in your Trust wallet, you deposit BUSD and get BNB in return, with this it means you have done a token swap.

_Trustwallet

Token Swap in a decentralized exchange happens mostly in tokens that share the same blockchain as we have read earlier in the intro post.

Although, a cross-chain token swaps can happen in some exchanges that allow users to swap crypto between different blockchains. Now whenever you swap a different blockchain token for another blockchain token it is called "Cross-chain" token swap. Although, it is most wrapped tokens are swappable in Cross-chain.

As we have made mention of wrapped tokens, let's take this example for a clear understanding.

_Trustwallet

For example you have some ETH in your trust wallet and you want to use it on the BNB Smart Chain, the Binance bridge is what you can use and lock your ETH on the Ethereum blockchain before you can receive (wETH token) Wrapped Ether on BNB Smart Chain.

However, when it comes to normal swapping it means you are selling one token for another token. Now let's take a look at what Token Migration is.

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Token Migration

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As said earlier toke migration can only be carried out by a crypto project which is the process of moving tokens from one blockchain network to another blockchain network.

This can help anytime a crypto project has found it necessary to switch to another blockchain network that is different from the one the project is using. Some crypto project has been switched to a different blockchain network based on the services that are offered by the network.

When a crypto project makes a switch to a different blockchain it old token can either be locked or burned since the new token will be created on the new blockchain network that the project is switched over to.

As a holder of the old token, the crypto project may decide to tell you to migrate the old token to the new blockchain network the project has been switched to before you can receive it new token.

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Difference Between Both

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With what we have explained so far, you can see that token swap and token migration are entirely different, because in a token swap as a hold, you can easily swap your token for another, but in a token migration, you can't do that unless the crypto project itself.

For example, in a centralized exchange, you can swap BTC to STEEM, BNB to STEEM, and vice versa, but in a token migration, as a holder, you can't migrate your BNB token from the Binance blockchain to the Steem blockchain.

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Conclusion

_{Token Swap and token migration are two different things that we have learned in this post. You can easily swap your token for another, using a crypto exchange, but you can't migrate your token to another blockchain network.}