Routing & Exchange
Exchange Settlement Times: Why Some Swaps Take Longer
An inside look at the technical process of non-custodial crypto swaps, network confirmations, and the factors that dictate settlement speeds.
By BetaExchanger Research · Published · Updated · 6 min read
Key takeaways
- Swap speed is largely dictated by the consensus mechanism of the blockchains involved, not the provider.
- Providers wait for a specific number of 'block confirmations' before executing a swap to protect against chain reorganizations.
- Bitcoin requires fewer confirmations (usually 1-3) but blocks take 10 minutes; Ethereum requires more confirmations (12-64) but blocks take 12 seconds.
- Never create a duplicate order just because the first one is taking a long time to settle.
A seamless non-custodial swap can complete in under two minutes, while others may take an hour. Understanding the mechanics of blockchain settlement will save you from anxiety when a transaction appears to be 'stuck' in a pending state.
The Anatomy of a Swap
When you initiate a transfer through BetaExchanger, the backend process involves three distinct phases:
- Phase 1: Deposit Confirmation. You broadcast a transaction. The provider monitors the receiving blockchain until the network confirms the funds are irreversible.
- Phase 2: Execution. The provider routes the confirmed funds through their liquidity pools to perform the actual asset conversion.
- Phase 3: Payout Broadcast. The provider generates a transaction on the destination blockchain and broadcasts it to your receiving wallet.
The Confirmation Bottleneck
The vast majority of delays occur in Phase 1. To prevent double-spending attacks, providers will not execute an exchange the second your transaction appears in the mempool. They require a certain number of blocks to be mined on top of your transaction to ensure it cannot be reversed.
Different blockchains have different confirmation requirements based on their security models:
- Bitcoin (BTC): Requires 1 to 3 confirmations. At ~10 minutes per block, expect a 10 to 30-minute wait.
- Ethereum (ETH): Requires 12 to 64 confirmations. At ~12 seconds per block, expect a 3 to 15-minute wait.
- Solana (SOL) & Polygon (MATIC): Near-instant finality. Expect a 1 to 3-minute wait.
Compliance and Risk Holds
Occasionally, a swap clears the blockchain instantly but remains stalled in Phase 2. Reputable exchange providers utilize automated risk-scoring tools to flag deposits linked to sanctioned entities, hacks, or mixers. If an algorithmic flag is triggered, the provider may halt the payout and require KYC (Know Your Customer) verification before proceeding or refunding the assets.