Fixed vs. Floating Rates

When you start a trade on Swapabit, one of the first things you have to decide is whether to use a Fixed or Floating rate. It can be confusing if you don't know the difference, but the strategy is simpler than you think.

For 95% of trades, Floating is the right answer.

Here is why: Fixed rates aren't free magic. To guarantee a price for 20 minutes in a volatile market, someone has to pay for the risk. That "someone" is you. Fixed rates include a built-in safety buffer (spread) that accounts for potential price drops. This means you are paying a premium for insurance you probably don't need.

With a Floating rate, there is no insurance premium. You get the real market price at the moment your deposit arrives. Unless the market completely nose-dives in the 10 minutes your transaction is pending—which is rare—Floating rates will mathematically result in more crypto landing in your wallet.

So why does the Fixed option even exist?

There are really only two reasons to use it:

1. You are paying a bill: If you need to send exactly 0.45 ETH to a merchant, and sending 0.449 would cause the order to fail, use Fixed.
2. The market is going crazy: If Bitcoin just dropped 15% in an hour and looks like it's falling off a cliff, grabbing a Fixed rate is like a lifeboat. It protects you from the slide while your funds move.

But for standard, everyday swaps? Save yourself the fees and let it float.