A swap token is a digital asset that is used to facilitate the swapping of one cryptocurrency for another. Swap tokens are used to provide liquidity in a cryptocurrency exchange and can be traded for other cryptocurrencies or fiat currencies.
Swap tokens are similar to other digital assets such as Tokens, Coins, and Altcoins, but have a few key differences. Firstly, swap tokens are not simply a digital representation of a currency or commodity, but rather are designed to be used specifically for the purpose of exchanging one cryptocurrency for another. Secondly, swap tokens are often issued by cryptocurrency exchanges themselves, rather than being created by a separate entity. This allows exchanges to provide their own liquidity for the swapping of cryptocurrencies.
Swap tokens can be used to trade a wide variety of cryptocurrencies, including popular ones such as Bitcoin, Ethereum, and Litecoin. They can also be used to trade less well-known cryptocurrencies, which can be more volatile and provide more opportunity for profit.