1inch: Why and How to use it?
1inch is a decentralized crypto exchange platform, or DEX, which stands out for its optimal security and affordable transaction fees.
1inch is one of many decentralized exchanges (DEX) that make the DeFi ecosystem much more accessible to ordinary cryptocurrency traders. In addition to its similar features to other DEXs, 1inch offers optimal security and affordable transaction fees.
What is the 1inch exchange?
1inch is a revolutionary decentralized crypto platform, which plays two different roles:
- A role as a platform for exchange
- A DEX aggregator role
The 1inch exchange allows you to buy and sell cryptocurrencies. Many of its features are very similar to those of Uniswap.
However, it stands out for its functionality as a DEX aggregator, which seeks the best offers among a wide range of decentralized exchanges (1inch price prediction).
For each transaction, the 1inch DEX aggregator explores several options. He can also divide the funds into several small amounts, then exchange them on different DEXs, thus guaranteeing the lowest prices on the market for his customers.
The 1inch exchange uses arbitration robots to distribute and exchange orders on several DEXs. This, in order to find the best price on the market. Although this operation can also be done manually, 1inch can do it in a single transaction and at a very fast pace. This distribution of orders on several DEXs also reduces slippage costs, which are a major concern for DEX users, especially when they carry out large transactions in illiquid markets.
The platform also offers its users a wide choice and advantageous prices for their swaps. Like other DEXs, 1inch does not impose any KYC processes on its customers.
1inch is also compatible with several DEX and DeFi platforms.
The main features and features of the 1inch exchange are:
- Liquidity protocol
- DEX aggregator
- Limited price order protocol
- Multi-string compatibility
- Low transaction costs
How does the 1inch crypto platform work?
When a user launches a transaction, 1inch distributes his order between different DEXs to find the best possible price. The customer can also change the percentage of slippage and gas costs necessary to process his transaction. Of course, this influences the processing time of the transaction (litecoin price prediction 2030).
The main objective of 1inch is to find the most profitable way to exchange cryptocurrencies. Generally, token exchange is not a simple swap between two assets. The crypto platform must execute several transactions before obtaining the desired asset.
This is particularly true if the crypto you are looking to exchange is not very popular. For example, if you want to exchange wBTC for LINK and you do not find a liquidity pool offering this pair, you will have to convert wBTC to ETH, then to LINK.
While most DEXs offer this type of functionality internally, 1inch distributes orders on different exchanges to find the best offers on the market.
The main advantages of this crypto platform are:
- A user-friendly interface.
- No additional transaction fees: users only pay transaction fees on the blockchain, because the 1inch exchange does not charge any fees.
- Affordable exchange fees: users have the option to choose between different exchanges to find the best prices and gas costs.
- LP tokens can be used in yield farming.
- The platform is secure.
- Better liquidity: As a DEX aggregator, 1inch is connected to more than 50 DEX, which hold a significant amount of liquidity.