A Foreign Exchange Swap (FX Swap) is a financial agreement between two parties to exchange a certain amount of one currency for another, with the intention of reversing the exchange at a later date. In the context of cryptocurrency, it involves trading one cryptocurrency for another while agreeing to perform an opposite trade at a specified future date.This mechanism helps participants manage currency risk and liquidity. For example, a trader may swap Bitcoin for Ethereum, confident that they can revert the trade later at an agreed rate. This is useful for hedging against market fluctuations or for speculating on price changes.Unlike traditional FX swaps that involve fiat currencies, crypto FX swaps allow for more diverse asset pairs and can be executed on various trading platforms. They are becoming increasingly popular as crypto markets mature, offering flexibility and opportunities for arbitrage.