1INCH Network is a DEX (Decentralised Exchange) aggregator; it aims to find the best exchange rates with the best trading fees for you. To put it simply, look at it as a fast-food aggregator. You use it to find the best pizza around, with the best prices. And after you found it, you would use the fast-food aggregator to order it instead of switching platforms to order the pizza.
Blockchain is a revolutionary technology and is always changing or helping other industries to change for the better. One other thing that was successfully changed to be a better version of itself with the help of blockchain was exchanges and trading.
The traditional way that exchanges work is through centralized exchanges, such as Binance and Coinbase. Centralized exchanges need an organization or a company to run them so that they can maintain them; in other words, it needs people to run them so they can operate. On the other hand, decentralized exchanges do not need people to keep operating and performing trades. Instead of human interference, decentralized exchanges work using smart contracts. Smart contracts are programs that operate in a specific way when the conditions are met.
Let’s not get ahead of ourselves and discuss decentralized exchanges,1inch network, and the way it operates in the following sections.
What is 1inch Network?
1inch network is a DEX aggregator, aimed at simplifying the task of finding the best DEX to exchange and trade. Finding the best DEX between all the decentralized exchanges that have the best trade rates and the lowest exchange fees can be very hard, as different DEXs offer different prices with different trading fees. Even if you know what you should do, it could be very frustrating. 1inch network’s ultimate goal is to provide your exchange with the best price possible, but how does 1inch define the best price for your exchange? How does 1inch operate?
When you decide to buy cryptocurrency from decentralized crypto exchanges, you’ll realize that the prices of certain crypto vary in different DEXs. What you have to do is to find a DEX with the best prices on that certain token, you should also calculate the exchange rates and then check the final numbers. As you can tell, it’s a very boring job to be done manually.
How does 1inch network work?
Let’s say you want to buy some 1inch tokens for example. You have to check different decentralized crypto exchanges and protocols to find the best price and the cheapest exchange fees. 1inch uses complex algorithms to look the information up for you, it makes sure to check all the different DEXs and protocols to find the cheapest one.
You have some ETH tokens in your wallet and you want to exchange them with some 1inch tokens for example. 1inch may do this trade by first swapping your ETH tokens between several different protocols and various tokens to finally arrive at 1inch tokens. Now you may be able to clearly understand why it is that we can not manually do what 1inch does; the services that 1inch provides can only be done by itself (or another DEX aggregator, maybe!).
What are the benefits of using 1inch Network?
One of the biggest benefits of using 1inch Network is that it saves your time. There is no need for you to search between different DEXs to find the best crypto prices and trading fees, as 1inch mainly aims to do just that for you.
The other benefit of using 1inch Network is that you won’t be spending more money on slippage. If you have traded cryptocurrencies you probably know what slippage is. The difference between the market price when you place the trade and when the trade is placed and validated is called slippage. By using 1inch Network you won’t be paying slippage.
Another perk of using the 1inch network is that the aggregator (1inch) doesn’t charge you fees for trading on the platform. The only fees you will have to pay are the exchange fees and the transaction fees or the gas fees. Plus, as you won’t move your assets into and out of 1inch, you won’t have to pay extra gas fees to 1inch (so it’s only the 1 gas fee that you pay to the exchange).
Let’s take A look at another advantage you can get by using the 1inch Network. Once you have successfully connected your wallet to the 1inch platform, you can move your tokens to the 1inch network’s liquidity pool. Liquidity pools are there to make sure there are enough of certain tokens when users want to trade them. By moving your tokens to the liquidity pool you’ll earn some profit whenever a user uses that liquidity pool to trade.
What is a 1inch token?
We have learned what the 1inch network is and we’ve gone through the services that the 1inch network provides us. Now that we have some basic knowledge about 1inch, it’s time to check out the 1inch’s native token and learn what it is used for.
The 1inch network has a native token named 1inch. 1inch tokens are used for what 1inch network likes to call “instant governance”. Token holders can participate in the governance of the 1inch network by voting, they will be voting on how they want the 1inch network to be run in the future. The “instant governance” is a great replacement for the need of a person or an organization to run the crypto exchange.
Where to buy 1inch Network (1INCHL)?
From centralized exchanges:
One way to buy 1INCH tokens is through centralized exchanges. Centralized exchanges are exchanges such as Nominex and Binance run by foundations. If you are planning to buy 1INCH Token, we recommend Nominex Exchange. If you do not know how to buy Nominex tokens, follow the step-by-step instructions to learn how to do it.
To trade 1INCH tokens from this exchange, you must create a new account or sign in to your previous account if you already have a Nominex exchange. You can trade 1INCH tokens from an exchange website by following the steps below.
Click the Create Account button to get started. This is a blue button in the upper right corner of the screen.
You are currently on the registration page, enter an email address and password strong enough; after marking “I am over 18”, you should be ready to move.
After registration, an email containing your account confirmation link will be sent to you. Open the email and click “OK” to confirm your account.
After registering and verifying your Nominex account, you should be on the landing page of the Nominex website. Click the “Inventory” tab to enter the inventory section.
This page displays a list of bookmarks. You can search for the 1INCH tag or you can search for it in the search box. After finding the 1INCH, click on the deposit option.
After entering the deposit page, click on the blue “Confirm” button and select your payment method. After determining the payment network, click on the 1INCH token purchase option from the top menu.
In this section, specify the amount of Fiat currency with which you are going to buy the tokens. Select your currency from the drop-down menu in the “I want to spend” section.
On the right side of the “I want to spend” section, select the type of digital currency you want to buy.
Then choose one of the payment methods with different commissions. You will be taken to a payment page, enter your credit card information and finalize your purchase process to purchase 1INCH tokens.
From Decentralized exchanges (DEX):
Another way to buy a 1INCH is to buy it from a decentralized exchange or AKA DEX. A decentralized exchange is an exchange managed by smart contracts, and the main difference with a centralized exchange such as Nominex and Binance is that no human is behind the wheel, so human accidents cannot happen and a decentralized exchange does not have access to you. All you have to do is connect your wallet to a DEX, complete the transaction and then close the exchange just as easily. Now, let’s go to the stock market where you can trade 1INCH and show you step by step exactly how you can do it.
- If you plan to use a computer, go to Metamask to install the Metamask plugin in Chrome. If you’re using your phone, download the Metamask app and continue.
- After installing the Metamask plugin, create a wallet and save the original code phrases in a safe place (do not keep the seed expressions on your computer or phone).
- After launching Metamask Wallet, copy your public address. You will use it to send your purchased tokens to your Metamask wallet. You should also put a few tokens in your wallet to trade them with 1INCH at an exchange.
- Choose a DEX to buy your tokens. You can use Uniswap to buy 1INCH.
- Enter DEX and connect your wallet to an exchange office.
- Select the 1INCH to buy and select the token you are going to trade with.
Q&A
What is 1inch protocol?
The 1inch Liquidity Protocol is a next-level automated market maker (AMM) that protects users and individuals from attacks and offers capital efficiency to liquidity providers while guaranteeing traders can trade ERC-20 tokens on the platform without having to overpay due to slippage. 1inch aims to find the best exchange rates with the best trading fees so you can buy the token you want in the cheapest way possible.
Is 1INCH a good investment?
While 1INCH surged in 2021, it has also experienced significant volatility. Most analysts think it is not a good investment and thus do not recommend investing in it, as they think it will go down in price in the future. Though it’s merely dependent on your investing strategy and your investing goals, such as how long you want to hold. Thus it’s best to decide based on your own strategy.
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