Bridge or Swap? How They Work and Which to Choose

Key Takeaways

• Cross-chain bridges enable crypto assets to be used on another blockchain by minting wrapped tokens in exchange for locked assets.
• Cross-chain swaps provide a peer-to-peer way to exchange coins using smart contracts as intermediaries.
• Both methods require similar time and gas fees, but swaps are preferable for maintaining custody of funds.

What Are Blockchain Bridges?

Blockchain bridges solve the lack of interoperability between protocols like Bitcoin and Ethereum. They facilitate value transfer across different chains without direct compatibility. Bridges lock your crypto in a smart contract and mint equivalent tokens on the destination chain.

Types of Bridges

1. Bidirectional (Two-Way): Transfers assets both ways (e.g., Polygon bridge).
2. Unidirectional (One-Way): Transfers assets in one direction only (e.g., Wrapped Bitcoin).

Trusted vs. Trustless Bridges

• Trusted Bridges: Require trust in the operator; assets are temporarily custodial (e.g., Binance Bridge).
• Trustless Bridges: Use smart contracts for security (e.g., Multichain, Anyswap).

What Are Cross-Chain Swaps?

Cross-chain swaps (atomic swaps) allow direct cryptocurrency exchanges between blockchains without centralized intermediaries. Implementations include:

• Lightning Network (Bitcoin swaps).
• AtomicDEX (multi-chain swaps).
• Thorchain (decentralized liquidity swaps).

How Swaps Work

1. Parties agree to swap (e.g., BTC for ETH).
2. Hash Time-Lock Contracts (HTLCs) lock funds until secrets are revealed.
3. Secrets unlock funds across chains, completing the swap trustlessly.

👉 Explore decentralized swaps

Bridges vs. Swaps vs. Exchanges

| Feature | Bridges | Swaps | Exchanges |
|-----------------------|-----------------------|----------------------|---------------------|
| Custody | Temporary lockup | Self-custody | Custodial |
| Output | Wrapped tokens | Native tokens | Traded pairs |
| Speed | ~Same as swaps | Near-instant | Varies |

Which to Choose?

Opt for Cross-Chain Swaps If You:

• Prioritize speed and self-custody.
• Trade less common tokens.
• Prefer simplicity over wrapped assets.

Use Bridges For:

• Specific wrapped tokens (e.g., WBTC).

👉 Compare bridge and swap fees

How to Execute Cross-Chain Swaps

1. Select currencies and amounts on a platform like ChangeHero.
2. Enter wallet details and confirm terms.
3. Send funds in one transaction (15-minute window for fixed rates).
4. Wait for processing (typically under 10 minutes).

Pro Tip: Always double-check wallet addresses to avoid errors.

FAQs

1. Are bridges safer than swaps?

Both carry risks (e.g., smart contract exploits), but swaps avoid custodial risks.

2. Can I reverse a bridge transaction?

Only with bidirectional bridges—unidirectional bridges lock funds permanently.

3. Which is cheaper?

Costs are similar; fees depend on network congestion.

Bottom Line

• Swaps excel for speed, custody, and simplicity.
• Bridges are niche tools for wrapped assets.

For hassle-free exchanges, platforms like ChangeHero offer instant swaps with no registration.