When swapping cryptocurrencies, the rate you receive can vary depending on the type of swap you choose. Understanding the difference between floating and fixed rate swaps helps you make smarter decisions, especially in volatile markets.
Floating Rate Swaps
A floating rate means the exchange rate is locked in at the moment your deposit is received and processed — not when you request the quote. The rate fluctuates with the market between your quote and the actual processing of your transaction.
Pros:
- Usually slightly better rates because providers don't need to hedge against rate movements
- More liquidity available since the provider isn't pre-committing to a specific rate
- Works for all pairs and amounts within limits
Cons:
- You might receive slightly more or slightly less than your original quote
- In highly volatile markets, the difference can be significant
SyntheticSwap uses floating rates because they consistently offer the fairest market price for the majority of swaps.
Fixed Rate Swaps
A fixed rate locks in your exchange rate for a set window — typically 10 to 30 minutes. Whatever market movement happens during that time, your rate doesn't change.
Pros:
- Predictable outcome — you know exactly what you'll receive
- Useful when market volatility is high and you want certainty
Cons:
- Slightly worse rates — providers charge a premium for the certainty guarantee
- If you don't send your funds within the fixed window, the rate expires and you restart
- Not all pairs and amounts are available at fixed rates
Which Should You Choose?
For most everyday swaps, a floating rate is the better choice. The rate difference is minimal, and you benefit from better market pricing.
Choose a fixed rate if:
- The market is experiencing extreme volatility (more than 2–3% swings per hour)
- You're swapping a large amount and need predictability for accounting purposes
- You have time to send funds within the lock window
A Note on Network Fees
Regardless of rate type, network fees (the cost of the blockchain transaction) are deducted from your received amount. These are set by the network, not the exchange, and can vary significantly based on blockchain congestion.
Always check the estimated network fee shown in the quote before confirming your swap.