How to swap tokens on MetaMask
If you’ve ever transacted with ETH or other tokens that are deployed on the
MetaMask is a great piece of software, and it is used widely in the Ethereum community. Recently, developers introduced a new feature to MetaMask which allows users to swap between different Ethereum-based tokens directly within the MetaMask interface. MetaMask sources liquidity from the Ethereum DeFi ecosystem to ensure that you’re getting the best rates possible for your swap.
In this guide, we’ll be showing you a step-by-step guide on how you can use MetaMask to exchange between different tokens.
1. Download MetaMask
Head over to the official MetaMask website and install the MetaMask browser extension. The extension can be installed on Google Chrome or Firefox. If you’re a mobile user, you can instead install the MetaMask app.
Once you install MetaMask, you will have to create your account. You can either import an existing Ethereum wallet or create a new one. If you decide to create a new wallet, make sure that you carefully store your 12-word backup phrase and never share it with anyone else. Your backup phrase will be necessary for you to backup and restore your account. The seed phrase is like a password – if anyone else gains access to this phrase, they can take all the ETH and tokens in your wallet.
2. Choose the token you want to swap
Once your MetaMask account is all set up and you have some tokens in your wallet, you’re ready to start swapping. In this example, we will be swapping
Then, select the »Swap« option.
3. Find the token you want to get
Now, you can search for the token that you want to get in exchange. In our case, we will select ETH.
Once you’ve selected the token, you’re ready to get your quotes. MetaMask will prepare different quotes and you’ll be able to select the quote that works best for you. You can leave the »Max slippage« setting at 1%.
4. Finalize your swap
Now, MetaMask will look for the best way to make your swap on the Ethereum network. This process should be pretty fast, but it’s not instant, so just wait until it’s done.
Note: The swap in this example is of a very low value. Due to Ethereum network conditions, it’s usually not worth it to swap between small amounts of tokens on-chain. This is because the transaction fees can often be more expensive than the transaction amount. Make sure to carefully check the estimated transaction fee before approving a token swap.
After it’s done, MetaMask will provide you the best quote, but you can choose to view the other quotes as well. Below, you can also see the estimated network fee and the maximum network fee for the swap.
In this example, we will choose to pay a low gas price, since we’re not in a hurry to get the transaction completed. If you want your transaction to go through faster, you can choose a higher gas price.
We’ll pay 0.1 GWEI over the »Low« gas price, so we set our gas price at 25.1 GWEI.
Now, our swap is all good to go! Our transaction should go through in around 11 minutes.
The bottom line
Instead of checking different DeFi apps like Uniswap, Kyber Network and Bancor, you can check multiple sources of liquidity directly through MetaMask. The added convenience does come at a slight cost, as MetaMask charges a 0.875% service fee on each swap.
Since Ethereum is a decentralized platform that dinamically changes according to supply and demand dynamics, swapping tokens through decentralized protocols isn’t always the smartest option. If there’s a lot of congestion on the Ethereum network, the transaction fees might be too high to justify a decentralized swap. In that case, you might want to consider centralized cryptocurrency exchanges as an alternative.
Source link: https://coincodex.com/article/9900/how-to-swap-ethereum-based-tokens-on-metamask/