Arbitrage trading is one way to profit from cryptocurrencies. Essentially, you buy low and sell high and sort of earn the spread.
Swapnex is one such platform that helps automate the otherwise tedious manual process. You don’t have to keep track of several cryptocurrency tokens and exchanges to profit from the market.
All you need to do is make a deposit and let the automated bot do the heavy lifting. To most people, that sounds too good to be true.
In this Swapnex review, we examine the platform in more detail and reveal everything you need to know before you start using it. Is it legitimate or a scam? Read on, and you’ll have your answers.
Swapnex.io is a cryptocurrency arbitrage trading platform that aims to profit from it. It helps find the difference in prices of a token between two or more exchanges and offers a profitable trade opportunity.
You can either take the suggestion and do it manually with the crypto of your choice or use the platform’s popular ‘auto mode’ to do the work for you.
Taking the manual approach is for those who’d prefer to do it the old-school way and have more control. This is not very scalable for obvious reasons, as there’s an upper limit on how much you can manage.
The auto mode makes it all look too easy, but there’s a catch (more on it later).
The platform offers several plans. The higher you go up, the more options/exchanges are made available, however, the auto mode is available even with the free plan (recommended if you want to test it out).
The paid plans offer some perks to people doing arbitrage trading manually but not much to those using the automated mode. For test purposes, it’s best to stick to the free plan, as most arbitraging opportunities are available.
If you feel like upgrading, you do get access to more cryptocurrency exchanges and a personal manager (on the flagship plan). However, this makes little sense because apart from manual trading upgrades, there isn’t much on offer.
Arbitraging, in layman’s terms, is buying low and selling high.
You go to an exchange, buy a token for cheap, and sell it at a slightly higher price on another exchange. This way, you make back your initial amount and then some profit (the difference in pricing between the two exchanges).
This is cryptocurrency arbitrage. As you can see in the above image, I’m trading USDT for several tokens on exchange 1 (Bitcoin, Ethereum, BNB and Tron), and selling them at a slightly higher on exchange 2 for a profit.
This is made possible with Swapnex’s built-in auto mode, which manages the trades 24/7 automatically. Although you can do this manually, it can get overwhelming, as you’ll need to stare at your computer all day long.
Swapnex IO does it in stages. This is how the 8-step process works:
However, things are a lot more sketchy than you would think. Swapnex tries to make things look legitimate, but it falters at times.
The slider moves simultaneously for several open trades, and it looks like it isn’t making any arbitrage trades but rather shuffling the exchange icons.
You are not involved in any of the above steps. At times, it does look like the platform is trying to make it all up so it doesn’t look like a Ponzi scheme.
If it has 30+’ integrated’ exchanges, how are they letting you withdraw simultaneously? (Often, with these crypto exchanges, there’s ongoing wallet maintenance and sometimes deposit/withdrawal delays because of tokens.)
Also, how are the returns always around 2%, considering markets are not static?
In the manual mode, you’re supposed to select a pair from the order book, a network of your choice, and two exchanges where you’ll do your arbitrage.
As of this writing, three networks are available – Ethereum (ERC20), TRON (TRC20), and Binance Smart Chain/BNB Smart Chain (BEP20).
The minimum amount you can use in the trader is 50 dollars. You can deposit various tokens using an appropriate network—your options include BTC, ETH, LTC, DOGE, USDT, TRX, BCH, XRP, DASH, BNB, ZEC, and XLM.
Keeping track of the prices between two or more exchanges and finding something profitable can be a chore at times. This is where the platform’s auto mode comes to the rescue.
You need only select a pair from the order book, input your amount, check/uncheck the compound interest button, and select the trading duration.
The more days you select in the auto mode, the more trades the bot will run for you in a day. More daily trades mean a better ROI, but there’s a catch. Your deposit stays locked, as the bots can’t be stopped midway.
As per the platform, your daily profits can be withdrawn/compounded, and once the term/period is over, you will get your original deposit back.
You can’t change your mind later, so if you’re not comfortable locking in your funds, it’s best to pick a shorter duration for testing. With the 60-day plan, you get roughly 2% returns a day.
It makes no sense, and the exorbitantly high returns seem like a lure to get people to sign up and make a deposit. Cryptocurrency arbitrage can be done, but it isn’t that easy to consistently generate a daily return of over 2%.
What makes it look even more shady is that you get roughly 4% returns on the 120-day plan. If the trading opportunities are similar and the market is fair to everyone, how in the world can the platform double the returns?
I’m always skeptical of these programs, so I tried making a withdrawal after testing out the auto mode for two days.
It never hurts to do that, as you’re not married to a program. Also if you intend to scale it/put more money in, you need to have more confidence.
In two days, I made $41 on a $1,000 test deposit, and my withdrawal request was approved within minutes.
The USDT made it to my wallet in a jiffy. The payment proof is attached. The process barely took 10 minutes from the time I made a request.
The program has consistently yielded 2% returns daily. I made a withdrawal after 2 days (check the above section), and it was successful.
On the third day, the arbitrage trading platform exceeded my expectations and made even better trades, resulting in my ROI approaching 2.5%.
The returns got better and better, making you want to put in more funds. Here’s how the Swapnex dashboard looked like after ten days (for my active orders):
As expected from the first day, something was up with the platform.
It’s not honoring my withdrawal requests anymore. It’s coming up with lame excuses to back it up (issues with exchanges, market sentiment, etc).
My previous withdrawal request took nearly 38 hours to approve, and the last one has been pending for over 48 hours as of now. Since you’re not an active investor, getting in and out of trades should be instant.
So, there should be withdrawals for obvious reasons.
I made a test deposit just for the sake of this review. Unlike some websites, we don’t just write reviews without actually using the product/service!
If you’re going for high returns, there’s a good chance it could be a scam or a Ponzi scheme. The MLM aspect of Swapnex doesn’t make much sense either, as you supposedly get paid for up to 5 levels (for your downlines).
If it’s just arbitrage, how does the system even manage to pay users for this?
This brings us to the end of this Swapnex review.
Swapnex makes the process look legitimate, and if you’re new to cryptocurrencies or the concept of cryptocurrency arbitrage, you can easily fall into the trap.
The platform lures users by offering higher returns the higher you go up (the more you deposit), and it will lock the money for the duration of the bot.
It makes zero sense, as no real crypto exchange will lock your funds for daily arbitraging. It looks clear the platform is only interested in more deposits.
There’s no reason to sign up for Swapnex unless you’re willing to take a risk (and a huge one). It’s not arbitrating, but if it lasts for a few weeks and you can withdraw, you could break even.
The chances of you breaking even are slim, though. The more you invest, the more the platform seems to make money for you—it doubles it.
There’s no way a platform can easily generate an excess of 2% daily returns.
It does everything that a scam or a Ponzi scheme will do. Withdrawals are delayed for over 48 hours, but this shouldn’t be the case as you’re just getting in and out of trades (if it’s really doing arbitrage, which it clearly is not).
However, the company does show a license (Australia-based) and its office address in PDF format, which is not that hard to obtain.
This helps a little, but it isn’t enough proof that the platform is making money with arbitrage trading. Considering the above factors, we can’t recommend Swapnex to anyone as the risks involved are a bit too high.
Is it a scam? It looks like one. The first few withdrawals are quick so the site can gain your trust, but it goes dark once you make a bigger deposit.
There are real arbitrage bots in the market, but they cost a fortune and don’t guarantee returns. This is because the markets are ever-changing.
Always remember that investing is a risky business, and you should only invest what you can afford to lose. If you’re not comfortable with this, it’s best to consult a financial advisor before making a financial decision.
Well, there is. If you’re interested in earning decent yields (at a manageable risk), you should consider Yieldnodes.
The platform has been performing well for over three years and consistently yields 7-10% monthly returns.
Check out our full Yieldnodes review here.
Yieldnodes shares its past performances and regular reports in the user dashboard. Its aim is to profit from mastering, not trading, which makes it less risky compared to trading.
The lone fact that Yield Nodes has lasted the entire bear market (over the last three years) and has profited during this time speaks a lot.
(Create your FREE account)
As expected, swapnex.io turned out to be a scam.
There was another so-called arbitrage trading platform called Cryptos OTC (COTPS). It turns out that both Swapnex and COTPS were run by the same con artist.
It was just a matter of time. From the numerous red flags that were already a clear indication, the website finally shut down in May and scammed investors.
The platform smartly took investors in, initially seemed like the real deal, and honored the withdrawal requests on time.
Once the user base grew large enough, the website started making lame excuses for payment delays, and as expected, it went dark.
Even though it’s sad, it reinforces the idea that you should never fall for something that promises unreal results. If it sounds too good to be true, it is!
You just can’t make 2% returns a day. At least, not for long! Even these scams share an opportunity to profit if you make an early entry and an early exit.
As bad as it is, it’s best to learn from our mistakes and move on. Mistakes are a part of being human, and you can’t avoid them.
I have personally invested in the Swapnex platform just to test the waters and write this honest Swapnex review for the visitors.
If you’re looking for a solid investment platform, consider Yield Nodes. Our in-depth review is available here.
The platform has been providing exceptional results for over three years and has repeatedly proven to be sustainable. Definitely give it a shot if you’re looking to generate a passive income with cryptocurrency.
Disclaimer: I’m not a financial advisor, and this is not financial advice. These are strictly my personal opinions and should be treated as such. The information on this website is for educational purposes only. Investing is risky, and it can often result in a loss of capital, so you should only invest what you can afford to lose. If you intend to invest any time soon, it’s best to consult a licensed financial advisor/consultant first.
Last updated: August 7, 2024
