Non custodial swaps explained: what they are and why they matter
In a non custodial swap, nobody keeps your coins along the way. Here is how the flow works, what you keep and what you trade off.
For most people, crypto starts at a big exchange. You create an account, prove who you are, deposit coins, trade on the platform and withdraw at some later point. All along, the exchange holds your coins. That is custody, and it asks you to trust a lot: how secure they are, whether they stay solvent and what they decide to do with your data.
A non custodial swap takes another route. You have no balance to manage and no wallet to fund. You send one coin and get another back in a single move, delivered to a wallet that only you control.
Step by step
- Pick the coin you send, the coin you want and the amount.
- Paste your own receiving address for the coin you are getting.
- You receive a deposit address that is used only once.
- Send your coins. After the deposit confirms, the exchange happens and the new coins go to your address.
That deposit address is created for this one swap. Once the swap finishes, nothing stays behind: no balance and no account that could be frozen or leaked down the line.
What stays with you
Your keys stay with you. Before the swap your coins are in your wallet, and after the swap they are in your wallet again. Your identity also stays out of any customer database, simply because there is no customer database to join. For people who care about privacy, this is the main reason to prefer this model.
What you trade off
Let us be straight about this part. While the swap runs, which takes a few minutes, the exchange controls your deposit. Deposits are also screened for stolen or sanctioned funds, and one that gets flagged can be held until questions are answered. Non custodial does not mean your coins are never touched. It means nobody holds on to them.
The order book is also out of the picture. An instant swap quotes you a rate with the margin already inside. Swap1337 shows you the amount you get after every fee, right next to the open market price, so the spread is always in plain sight. Learn more on how it works.
Who it is for
It fits anyone who wants to switch coins without opening an account, people who keep their savings in their own wallet, and anyone who would rather not hand over a passport just to turn Bitcoin into Monero. Give it a try on the swap page.
Quick answers
Does non custodial mean my deposit can never be held?
No. For the few minutes the exchange takes, your deposit is out of your hands, and a deposit that fails screening can be held. What does not happen is anyone keeping a balance for you afterwards.
Is an account needed for a non custodial swap?
Not with Swap1337. Choose your coins, paste your receiving address and send the deposit. The new coins go directly to your wallet.
Ready to swap? See the live rate. No account needed.
