The 1inch exchange has been gaining popularity throughout 2021 after a long 2020 for new projects and decentralized finance (DeFi) solutions. This platform works as a decentralized exchange (DEX) aggregator that allows users to buy and sell digital currencies through different DEX platforms.
Although these terms can be somehow complicated they are very easy to understand. This is why we have decided to create a guide that would answer all the questions you might have about this platform.
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Decentralized exchanges, compared to traditional crypto trading platforms, are services that are not controlled by a centralized authority. Users are able to handle their funds and exchange virtual currencies through a system that is decentralized and that does not require the permission of a centralized party.
However, one of the weak points of decentralized exchanges is related to their lack of user-friendliness. They are usually not comfortable to use and they do not have the same interface as traditional platforms.
Due to this reason, DEXs have failed to achieve mass adoption in the last few years. Nevertheless, 1inch aims at changing this by offering a decentralized exchange aggregator to buy or sell digital assets.
Decentralized finance (DeFi) is a sector of the cryptocurrency market that has been growing over the last few years. In general, they have expanded throughout 2020 and their aim is to offer financial services but in a decentralized manner.
Decentralized exchanges, for example, are one of the services offered by this industry. However, there are many other solutions and platforms that have been launched and that offer crypto services.
For example, lending and borrowing platforms are now the hot topic of the crypto industry. Users are able to lend and borrow digital assets without having to rely on a centralized authority such as a bank or a financial institution.
Just by simply using crypto as collateral it is possible to get a credit. By depositing funds on a smart contract, investors can also get rewarded.
1inch exchange is a company that is offering an aggregator of decentralized exchanges where users can simply buy and sell virtual currencies without relying on a single platform. Rather than going through different platforms searching for the best option, traders can easily get connected to the exchange and start trading through the best options available in different DEX platforms.
One of the main benefits is related to the fact that the platform is able to place different orders on different exchanges. In this way, it is possible to reduce slippage and avoid paying higher prices for your digital assets.
With these services, users can easily find the easiest, fastest and cheapest way to swap their virtual currencies. By sourcing liquidity from different platforms, 1inch makes sure you are getting the best deal for your virtual currencies, making the market much more efficient.
It is worth noting that the company received funding from Pantera Capital, Blockchain Capital and Spartan Group, among others. At the moment, 1inch is also run through a decentralized autonomous organization (DAO). Moreover, the platform is very easy to use. It has a very simple user interface and makes it very straightforward for users to get access to several digital currencies.
With the expansion of the 1inch cryptocurrency exchange, they have decided to launch the 1inch digital currency. With it, users are able to participate in the governance of the platform and also to get access to different solutions in the crypto market.
The coins are now available on different decentralized and centralized exchanges and can be purchased by most of the crypto community. Some of the platforms that are already working with this virtual currency include Binance, Uniswap or Huobi Global.
It is worth taking into consideration that the virtual currency has moved from $0.82 in early January to over $6 a few days ago. This shows that there is a bullish demand for the virtual currency in the market. Although it is not possible to predict how far this virtual currency can go, moving from $0.82 to these levels shows that there is a large demand for this digital asset.
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