4swap Crypto Exchange Review: Deep Dive into Features, Security, and Usability

TL;DR:

• 4swap runs on the Mixin Network and uses atomic swaps instead of AMM pools.
• Privacy and trustlessness are top strengths, but you need a counter‑party and more technical knowledge.
• Swap times are slower than Uniswap or Binance, and liquidity can be thin.
• Fees are low, but there is no built‑in tax reporting.
• Best for advanced users who value privacy over speed.

What Is 4swap?

4swap a decentralized cryptocurrency exchange built on the Mixin Network that uses atomic swaps to trade assets directly between users launched on September 3, 2020. Unlike typical Automated Market Maker (AMM) platforms such as Uniswap, 4swap does not rely on pooled liquidity. Instead, it matches two counterparties and executes a peer‑to‑peer swap using a series of hashed time‑locked contracts (HTLCs).

How the Atomic Swap Engine Works

The core of 4swap’s technology is the Atomic Swap a cross‑chain transaction method that guarantees either both sides exchange assets or none do. The protocol follows four on‑chain steps:

1. Each party locks its asset in an HTLC on its native blockchain.
2. The contracts include a grief‑free penalty that discourages stalling.
3. When both HTLCs are verified, the assets are released simultaneously.
4. The final step settles the swap and refunds any unused collateral.

The use of Hashed Time‑Locked Contracts cryptographic scripts that enforce a time window for claim and refund actions ensures that a malicious participant cannot lock the other party’s funds indefinitely. This design, highlighted in a 2025 Cointelegraph analysis, makes the swap “grief‑free” while keeping the transaction count to a minimum.

Advantages Over Traditional AMM DEXs

Because there is no liquidity pool, 4swap offers two clear benefits:

• Maximum privacy: No public order book, no pool balances, and no on‑chain price oracle that can be scraped by bots.
• Trustless execution: Swaps are settled directly between users, eliminating the risk of a malicious pool owner.

These points appeal to users who are wary of front‑running or who need a completely on‑chain, audit‑friendly process.

Trade‑offs and Practical Considerations

Every technical edge comes with a cost. 4swap’s reliance on finding a matching counterparty means:

• Liquidity can be thin. If no one is offering the exact asset pair, the swap sits idle until a match appears.
• Price discovery is manual. Users negotiate rates, unlike AMM platforms where the curve automatically sets a price based on pool depth.
• Execution time varies. While the protocol itself can settle in under a minute, real‑world swaps often take 30-90 seconds to find a partner, longer than the ~45‑second swaps on Symbiosis.finance or the ~60‑second average on Uniswap.

For casual traders who want instant execution, the platform feels sluggish. For privacy‑first users, the wait is a reasonable price to pay.

Security and Trustworthiness

4swap inherits the security guarantees of the Mixin Network a high‑throughput, multi‑chain messaging layer that enables atomic swaps without bridges. The network’s consensus model has never suffered a major breach, and because swaps are settled on the underlying blockchains (Bitcoin, Ethereum, BNB Chain, etc.), there is no single point of failure.

However, the platform is listed as an “Untracked Listing” on CoinMarketCap as of 2025, meaning volume data is not publicly verified. This opacity raises a compliance question: while tax agencies can still trace HTLC transactions on the source chains, the exchange itself does not issue tax documents, leaving the reporting burden entirely on users.

Fee Structure

Fees on 4swap are minimal because there are no pool swap fees. Users only pay the standard on‑chain transaction fees for each HTLC (typically a few satoshis on Bitcoin and a fraction of a gwei on Ethereum). Compared to the 0.30%‑0.35% fee on Binance or the 0.25% fee on Uniswap, 4swap’s cost advantage is clear, especially for large‑volume traders who can absorb the slightly higher latency.

Usability: Who Should Consider 4swap?

If you’re comfortable reading a light‑whitepaper, understand hashlocks, and don’t mind waiting for a match, 4swap can be a powerful tool. It shines for:

• Privacy‑conscious traders who avoid on‑chain price leaks.
• Institutional or high‑net‑worth users looking to move large sums without slippage.
• Developers building custom cross‑chain applications that need a trustless swap layer.

Conversely, beginners, retail investors, or anyone chasing ultra‑fast trades should probably stick with user‑friendly platforms like Crypto.com or Binance.

Feature Comparison

Getting Started: Step‑by‑Step Guide

1. Download a Mixin Network wallet (e.g., Mixin Messenger) and secure your seed phrase.
2. Deposit the assets you want to swap into the wallet.
3. Visit the 4swap web interface and connect your wallet using the built‑in QR code.
4. Select the asset pair, enter the amount, and propose your desired price.
5. Wait for a counterparty to accept the offer. Once matched, the platform auto‑generates the HTLCs.
6. Approve the on‑chain transactions in your wallet. After all four steps confirm, the swap completes.

Because the process uses on‑chain contracts, you can view every step on the respective block explorer (e.g., Etherscan for Ethereum swaps).

Potential Pitfalls and How to Avoid Them

• Stale offers: If you set a price far from market rates, your offer may sit idle for hours. Keep an eye on price feeds and adjust.
• Gas spikes: During network congestion, HTLC fees can rise sharply. Consider swapping when gas prices are low.
• Counterparty risk: Although the protocol is grief‑free, a malicious party could still try to cause a timeout. The built‑in penalty refunds your funds, but you’ll waste time.
• Tax reporting: Record every transaction hash and the assets involved; tools like CryptoTaxCalculator can import the data for filing.

Future Outlook

The DeFi space is moving toward more user‑friendly cross‑chain bridges, but the fundamental privacy advantage of atomic swaps keeps 4swap relevant for a niche audience. If the team introduces a matching engine that aggregates pending offers, we could see faster execution while preserving the grief‑free design.

Until then, the platform remains a specialized tool for those who prioritize decentralization over convenience.

Frequently Asked Questions

Is 4swap safe to use?

Yes, because each swap is settled on the underlying blockchains via HTLCs. There is no central custodian, so the risk is limited to smart‑contract bugs (none have been reported as of 2025) and normal network fees.

How do fees on 4swap compare to other exchanges?

4swap only charges the on‑chain gas fee for each of the four HTLC transactions. That’s typically a few cents, compared to the 0.25‑0.35% trading fees on AMM DEXs and the 0.10‑0.20% fees on centralized exchanges like Binance.

Can I trade any crypto pair on 4swap?

Only assets that are supported by the Mixin Network and have HTLC‑compatible implementations can be swapped. Common pairs include BTC/ETH, BNB/USDT, and SOL/USDC, but exotic tokens may not be available.

Do I need to complete KYC to use 4swap?

No. 4swap is a non‑custodial, permission‑less platform. Your identity remains private, but you are fully responsible for tax compliance.

What happens if the counter‑party disappears mid‑swap?

The grief‑free HTLC design ensures that if one side fails to claim within the timeout, the other side can refund its assets automatically. You won’t lose funds, but the swap will abort and you’ll need to start over.