Fixed Rate vs Floating Rate: Which Is Better?
When you swap crypto, you usually get a choice between a fixed rate and a floating rate. A fixed rate locks the exact amount you will receive when you create the order. A floating rate follows the live market price until your deposit is confirmed, so the final amount can move up or down. Neither is always better. This guide explains how each works and when to pick one over the other.
What is a fixed rate?
A fixed rate guarantees the amount you will receive. When you create the order, the exchange locks the rate for a set window, usually around 20 minutes. If you send your deposit inside that window, you get exactly the amount quoted, no matter what the market does in between.
The trade-off is that a fixed rate is usually slightly worse than the live market rate. The exchange takes on the risk of the price moving, so it builds a small margin into the quote. You pay for certainty with a slightly lower rate.
What is a floating rate?
A floating rate follows the live market. The amount you receive is calculated at the moment your deposit is confirmed, using the market price at that time. If the price moves in your favor while your deposit confirms, you get more. If it moves against you, you get less.
Floating rates usually quote closer to the live market price, because the exchange is not taking on price risk. The cost is uncertainty. You do not know the exact amount until the swap completes.
When to choose a fixed rate
Choose a fixed rate when certainty matters more than squeezing out the best price. That includes large swaps, where even a small price move costs real money. It also includes volatile markets, where prices can swing several percent in minutes. If you need an exact amount, for example to pay a bill or to fund another trade, a fixed rate is the right call.
A fixed rate is also the safer choice when the network you are sending from is slow. If your deposit takes a while to confirm, a floating rate has more time to move against you. A fixed rate removes that risk entirely.
When to choose a floating rate
Choose a floating rate when the market is calm and you want the closest possible price to the live market. For small swaps, the difference between the two rates is tiny, and the floating rate often comes out slightly ahead.
A floating rate also makes sense when you are swapping between two stablecoins, or between coins that usually move together. The price is unlikely to move much during the confirmation window, so the risk is low and the better rate is worth it.
Fixed vs floating rate at a glance
Fixed rate: the amount is locked at order creation, no surprises, slightly worse rate, best for large swaps and volatile markets. Floating rate: the amount follows the live market, can be better or worse, closer to market price, best for small swaps and calm markets.
There is no single right answer. Check both quotes on the swap page before you decide. The difference is usually small, so pick the one that matches how much certainty you need for that specific swap.
How to pick your rate on FixedSwaps
- Enter your swap — Pick the coins and the amount you want to exchange.
- Compare both rates — Look at the fixed rate quote and the floating rate quote side by side.
- Pick the one that fits — Choose fixed for certainty, floating for the closest market price.
- Send your deposit — Transfer the exact amount shown. With a fixed rate, the amount is locked once you create the order.
Frequently asked questions
- Is a fixed rate always worse than a floating rate?
- Not always. A fixed rate is usually slightly worse than the live market rate, because the exchange takes on the price risk. But if the market moves against you during a floating swap, the fixed rate can end up better.
- How long is a fixed rate locked for?
- On FixedSwaps a fixed rate is locked for around 20 minutes from order creation. Send your deposit inside that window to keep the locked rate.
- Can I change from fixed to floating after creating an order?
- No. The rate type is set when the order is created. If you want the other rate type, create a new order and let the old one expire.
- Which rate is better for a large swap?
- A fixed rate is usually better for large swaps, because even a small price move costs a lot on a big amount. Certainty is worth more than the small rate difference.
More guides
How to Swap Crypto Without KYC | How to Avoid Slippage When Swapping Crypto | What Is an Instant Crypto Exchange? How It Works
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