1Inch Review

Trading on the DeFi ecosystem used to be complex, but with a DEX aggregator, the process is much more streamlined. So, in this 1inch review, I'll be talking about how this dApp finds you the best exchanges for optimum rates.

Now, it might be your first time hearing about a DeFi aggregator. I'll walk you through that along with what is the 1inch exchange while exploring its pros and cons around numerous aspects, from user-friendliness to security, in this 1inch review.

But, to quickly answer, which exchange provides the most competitive rates? Arguably, different factors chime in, but Binance and Bybit offer 0.1% trading fees, which can make a notable difference for frequent traders. That said, if DeFi trading is more of your jam, find out if the 1inch DEX is truly for you!

Verdict at a glance: The 1inch DEX offers great value for experienced crypto traders, thanks to its efficient trade routing and support for multiple blockchains. It’s a flexible tool for minimizing fees, but the complexity may challenge beginners, and the platform lacks direct credit or debit card support.

What is the 1inch Exchange?

1inch is a DeFi platform that helps you find the best rates for your crypto trades by pulling prices from different decentralized exchanges. Aside from what is the 1inch exchange, we’ll also explore how the platform simplifies trading and helps you find good deals easier, but that’s in the latter part of this 1inch review.

Let's start with a bit of backstory. 1inch was originally developed at the ETHGlobal New York Hackathon in May 2019. The founders, Anton Bukov and Sergej Kunz, initially didn't expect that 1inch would turn into a full-time project.

Of all the many Hackathons they've participated in, they won the smallest prize with 1inch. Anton and Sergej took that as a wake-up call to fully rebuild 1inch from the grown, turning it into the full-brown decentralized ecosystem we see today.

Now, to further understand what is the 1inch exchange, let's shift gears to discussing how it works. Essentially, 1inch is an aggregator that works with big blockchain networks like Ethereum, Binance BNB Chain, and Polygon, giving you access to a wide range of options.

No matter what coin or how much you're trading, 1inch taps into these networks to give you the best rates by minimizing costs and ramping up what you get out of each trade.

Think of it like shopping around different stores to get the best price, but instead of doing all the legwork, the 1inch crypto exchange does it for you. It scans through multiple exchanges so you can pick the best deal without being stuck with just one option. That way, you can make quicker decisions with your trades, especially in the ever-changing world of crypto.

On top of that, the 1inch DEX plays a key role in keeping the DeFi space running smoothly, helping liquidity move freely between different platforms and making trading more reliable for everyone.

Hopefully, the definition and analogy above help you understand what is the 1inch exchange in a deeper sense. After all, a DeFi aggregator may not be a common phrase to hear, but it could make a difference in your trading experience. Let's explore that further.

1inch Review: PROS

As promised, I'll discuss how the 1inch Exchange does things differently, especially compared to centralized exchanges, when finding optimal liquidity for your trades. I've tested the platform myself, and let's roll right into the major advantages in this 1inch review.

User-Centric Security

Right off the bat, for those asking, is 1inch safe? Well, I find a couple of reasons to back up the answer: yes, 1inch is safe, thanks to its non-custodial and tamper-proof approach to asset management.

Operating as a non-custodial DEX, 1inch lets you keep a firm grip on your cryptocurrencies and private keys. The truth is, this is where most DEXs shine compared to CEXs. Instead of handing in your treasured assets to be reserved by one entity, 1inch gives you more freedom: you control what you do with your funds.

Of course, there's always a debate about whether larger entities with larger resources are inherently more trustworthy for asset management. However, a growing number of cyberattacks has led to a decline in public trust in crypto exchanges.

Well, a major pro in this 1inch review is how the platform has no central vault to store user funds, so practically, there's nothing for hackers to target. Instead, everything is safeguarded in the wallet of your choice, whether it is the Ledger Nano X or Trezor Safe 5. Both of these wallets have maintained spotless security records with zero history of hacks.

Plus, since the 1inch exchange does not collect personal details, the chance of a data leak is much lower. Then again, reiterating for those asking, is the 1inch exchange safe? Well, its privacy-focused setup adds peace of mind. Although, is that enough?

1inch takes extra steps with its bug bounty program, inviting experts to identify, troubleshoot, and resolve vulnerabilities. On the tech side, 1inch adds another layer of protection by ensuring its API interactions are encrypted and tightly controlled to kick out unauthorized access.

Next, let's see how the 1inch DEX secures your transactions. The platform relies on smart contracts to handle transactions, conducting regular audits with top firms like OpenZeppelin and ConsenSys Diligence. With such a proactive approach, it's quite easy to feel confident when wondering is the 1inch exchange safe.

On top of regular audits, 1inch has its internal audits, too. Skynet, an advanced monitoring system, continuously oversees the platform. Using sophisticated algorithms, Skynet identifies and responds to potential threats quickly.

And again, with 1inch's non-custodial system, users have full power. Furthermore, the involvement of 1inch's decentralized autonomous organization (DAO) empowers 1INCH token holders to maintain integrity within the DEX's operations.

So, with all the advanced security measures laid out in this 1inch review, the answer to the very question, is the 1inch exchange safe? Yes, it is. From robust encryption to in-depth audits, 1inch is sufficiently reliable when it comes to protecting your assets.

Zero Fees for Some Features

While trying out the token swapping functionality on 1inch, I was pleasantly surprised that it incurred me no fees at all. So, I'd like to highlight how the absence of token swapping fees is an advantage in this 1inch review.

Generally, a DEX will charge you swap fees ranging between 0.1% to 2% and sometimes more. In 1inch's case, though, they absolutely waive the fees. Turned out, this no-swap-fee policy has been implemented since the DEX's launch.

After all, the mission of 1inch is to make sure that users get the best prices for their trades, and alleviating token swap fees is one way to achieve that.

By loosening up the fees, both sides win. 1inch and its less competitive rates will put the platform in a favorable right. On the other hand, users can enjoy the platform's user-friendliness, making it more simple to manage crypto transactions without the stress of calculating add-on costs.

Keep in mind that while the 1inch crypto exchange does not charge token swapping fees, you're still on the hook for network gas fees. Rest assured, such expenses are necessary for processing transactions smoothly on the blockchain.

As for the amount of gas fees you'll need to pay, well, it varies based on network activity. I'd suggest monitoring the market to optimize the timing of your transactions and avoid peak fees overall.

Thankfully, 1inch does help you save up gas fees. Smart features like Infinite Unlock, which removes permission to spend gas fees for a token you've locked in the past, or utilizing CHI Gas tokens can reduce the total you need to pay.

On top of that, if you're trading using 1inch's limit order protocol, you'll also be exempted from fees, making your gas fee spending much more efficient.

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Smart Contract-Powered Trading Protocols

Further exploring the 1inch crypto exchange, another pretty cool feature is the smart contract technology integrated into 1inch Router V6 and Limit Order Protocol V4.

Here's the deal: smart contracts on 1inch don't just sit idle. They actively scan multiple trading routes to save on costs and secure the best rates. For that, 1inch uses a smart algorithm known as Pathfinder, which checks fees, slippage, and liquidity like a seasoned trader with an eagle eye.

What's more, Pathfinder's newest update keeps track of various market depths. Whether the trades are split across one or multiple platform(s), users can potentially get the most competitive rates while keeping the gas fees relatively low.

Now that we've noted the basic tech stacks down, let's take a deeper look into 1inch's trading protocols.

Router V6

Router V6 is a renewed Ethereum-based protocol by the 1inch DEX for token swapping. This up-to-date version will bring down your gas fees by 16%, compared to the previous 10%.

As with all technology, though, error incidents are inevitable. That said, 1inch's smart contract features an improved error processing system. With the addition of custom errors, the system lets you know why a trade hasn't successfully gone through while facilitating convenient and gas-efficient alternatives.

Additionally, Router V6 supports 200+ protocols, including top-tier networks like BNB Chain, Polygon, and Arbitrum (aside from Ethereum, of course). So, if you're looking to diversify your liquidity sources, 1inch has plenty to offer.

Traders can swap big-name currencies like Bitcoin and Ethereum. These are the staples for many traders, and having them on the 1inch DEX ensures you're in familiar territory if you like to stick with the majors.

If you're a trader who prefers a little more stability, 1inch has your back with stablecoins like USDT (Tether) and USDC (USD COIN), as they're pegged on a 1:1 ratio to US dollars. But, if you're more adventurous, 1inch opens the door to a world of ERC-20 tokens, from well-known assets like DAI to emerging gems like SHIB.

Limit Order Protocol V4

1inch DEX's Router V6 is seamlessly merged with Limit Order Protocol V4. What is that, exactly? Well, it's an order type that enables users to set specific triggers when executing their orders to maximize earnings and minimize risks.

Limit Order Protocol V4 leverages dynamic pricing for cost efficiency. Utilizing the power of smart contracts, the technology calculates prices based on demand and supply to find the best deals. Plus, with Extra RFQ support, the protocol allows requests for specific amounts of cryptocurrency, offering greater flexibility.

Now, do you remember when I brought up how the DEX's Limit Orders incur no fees in this 1inch exchange review? Well, these limit orders aren't just tied to one function, but they also extend to various applications:

• Peer-to-Peer orders. Both lenders and borrowers can securely swap their tokens at optimal rates.
• Stop-Loss Order. As a user, you can set a specific price point to execute your order. Once that limit is reached, your open position will automatically be closed to prevent further losses.
• Trailing Stop Order. Users can set a stop price at a fixed amount below the market, with a "trailing" amount that adjusts following market fluctuations.
• Auction. Making use of the protocol's dynamic pricing, auctions on the 1inch crypto exchange will facilitate more instant settlements and real-time price discovery.

But keep in mind, all this fancy tech means there's quite a bit going on behind the scenes. These systems rely on high-performing off-chain infrastructure to execute orders. So, it demands the user's trust in the system's ability to retrieve accurate data and initiate a trade.

Tightly-Secured Earning and Mining Programs

Aside from the limit order feature, which allows you to set the exact price you're willing to buy or sell at, the 1inch crypto exchange also provides you with opportunities to earn some rewards on the side.

One of the methods is by staking the 1inch token. By doing so, you can earn potential extra tokens along the way, making your crypto work for you as you focus on other things. However, the trader's discretion is advised.

Liquidity provision is another tool in the 1inch kit. In cryptocurrency markets, liquidity provision involves market makers buying and selling assets to ensure smooth transactions^[1].

On 1inch, users provide equal amounts of two tokens to a liquidity pool and earn a share of the fees from the trades. While it carries some risk, it can be a familiar earning option for those used to liquidity mining.

On top of that, 1inch does not limit you to only one liquidity source, as it aggregates more than 100 DEXs. Now, not all DEXs are equal in terms of security, but the RabbitHole – a standout feature in this 1inch exchange review – enhances safety for Web3 explorers by protecting you against front-running attacks.

Whenever you're making transactions on any of the DEXs, RabbitHole will reroute your data to trusted validators like Flashbots and Eden. It also actively avoids the public Ethereum mempool, which is a hotspot notorious for predatory trading. Overall, RabbitHole ensures your transactions are less vulnerable to interception and manipulation.

And if you're keen to cut down on gas fees, 1inch's Fusion Swaps are worth exploring. It allows for gassless transactions, which might help you optimize costs as you trade.

So, whether you're into staking, providing liquidity, or active trading with minimal fees, this 1inch review has shown you several ways to make the most of your assets on the platform.

Mobile 1inch Exchange App

The mobile 1inch exchange app is a handy tool for traders who like to manage their assets on the go. Whether you’re using iOS or Android, the app keeps things simple with a clean and intuitive interface that works for both beginners and experienced traders.

The UI is not flashy, but it gets the job done. Right from your 1inch exchange app, you can monitor price movements and execute trades as if you're using a desktop.

One of the more convenient features of the 1inch exchange's app is the smooth integration with popular crypto wallets like Ledger Nano X and Trezor Safe 5. Once your wallet is connected, you can trade across different blockchains, including Ethereum and the BNB Chain, without jumping through hoops.

And just like the desktop platform, the 1inch exchange app uses a non-custodial model. It employs AES-256  encryption, which protects your data with a 256-bit key and 128-bit blocks, making it highly resistant to cryptographic attacks^[2].

For an added layer of security on mobile, the 1inch Shield API monitors malicious tokens or DEXs on the app. So, if you're asking, is the 1inch exchange safe, even on mobile? The combination of robust encryption and real-time monitoring, as shown in this 1inch review, helps ensure that your assets and data remain secure while using the app.

To summarize, the 1inch mobile app's focus on convenience and security makes it quite a solid option for mobile traders, especially if you prefer managing your assets independently.

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Compare Crypto Exchanges Side by Side With Others

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1inch Review: CONS

One important point to mention in this 1inch review is that while it offers advanced features, the platform also has its share of drawbacks. Let's look at them in more depth.

Not Ideal for Beginners

If you're new to DeFi, 1inch can seem like a bit of a maze. The platform is packed with over-the-top features, but it doesn't offer much hand-holding for beginners. To get started, you'll need to know how to connect a crypto wallet and be familiar with  DEXs. Without such background, it's easy to feel lost.

For example, if you're coming from user-friendly platforms like Binance or Kraken, where you can just click a few buttons to make trades, 1inch's interface might feel like a different world. There are no tutorials or guided steps, so you're expected to figure out how to swap tokens, provide liquidity, or stake assets on your own.

	BINANCE	KRAKEN
Overall Score	9.6	9.1
Best For	Buying, Trading, and Holding a Wide Variety of Cryptocurrencies	Best for Beginners
Operating Countries	Turkey, Russia, Argentina, Vietnam, Ukraine, + 40 more	United States, Germany, United Kingdom, France, Canada, + 190 more
Latest Coupons	SECURE $600 BONUS All Binance Coupons	Visit Site All Kraken Coupons
Verdict	One of the leading crypto exchange platforms in the industry.	One of the best crypto exchanges.
	Visit site Read review	Visit site Read review

Table: Binance VS Kraken comparison.

Even though 1inch has features like limit orders and liquidity aggregation are great for seasoned traders, they might feel like an overkill if you're looking for a simple place to swap some tokens.

So, if you're a beginner or a trader who prefers simplicity, consider user-friendly alternatives that offer clear, simple interfaces and a wealth of educational resources. Believe me, the platform you choose can make a big difference if you're still learning the ropes. After some time, you may consider switching to 1inch.

Inconsistent Transaction Speeds

User 1inch exchange reviews have also reported inconsistent transaction speeds on the platform. While 1inch is known for its advanced routing algorithms, which do a good job of finding cost-efficient paths for trades, transaction speed isn't always consistent. Not to mention, network congestion can slow things down, especially on blockchains like Ethereum.

When the network gets busy, either during token launches or times of high demand, transactions can take longer than expected. Even though 1inch is designed to optimize routes of multiple DEXs, it can't fully escape the delays that come with an overloaded network.

As highlighted in user 1inch reviews, Ethereum is particularly prone to the issue at hand. When traffic is heavy, the number of transactions in line can outpace the network's ability to process them quickly. Consequentially, users may experience delays and higher gas fees, even if the 1inch exchange itself is quite efficient in finding liquidity.

Such a scenario can be frustrating for traders, especially during fast-moving market conditions where timing matters. If you're trading during peak congestion, it's worth keeping in mind that 1inch can't fully control the speed at which transactions get confirmed.

Limited Traditional Payment Methods

Another area where 1inch might fall short for some users is its lack of traditional payment methods like using credit/debit cards. If you're looking to buy crypto using traditional currencies like USD or EUR, 1inch doesn't make that easy.

While it provides access to third-party services like Moonpay, Banxa, and Transak (via the 1inch Wallet), the process isn't as seamless as platforms that directly allow you to buy crypto with a debit or credit card. Many user 1inch exchange reviews highlight this as a disadvantage for users seeking more straightforward crypto purchasing options.

Moreover, a huge drawback of using those third-party providers is the added processing fee. The rates aren't always competitive, and the extra steps involved in converting fiat to crypto might put off new users who want a smoother entry point into crypto trading.

Compared to platforms like Bybit or Coinbase, where you can instantly purchase crypto with a bank transfer or credit card, 1inch feels a bit more complex. Nevertheless, for users who are already comfortable with DeFi, the lack of direct fiat support may not be a big issue.

1inch Exchange Fees

So, I've covered the pros and cons in this 1inch review, but those aren't the only deciding factors. After all, you might wonder about 1inch exchange fees.

For starters, you won't encounter charges for depositing or withdrawing funds. Instead, the only costs you need to consider on the 1inch exchange are related to your actual trades.

As always, gas fees are unavoidable. Without these fees, your transactions on the blockchain won't be processed. The real question is, how much are the 1inch exchange fees for gas? It varies by the network you use. For instance, trading on Ethereum might be expensive during times of high network activity.

To help reduce gas fees, 1inch offers the CHI Gas Token. I've mentioned this briefly in my 1inch exchange review, and it is a token that can cut gas costs by up to 42%, which can come in handy during moments of high traffic on Ethereum or other networks. For even more savings, you might consider using other blockchains like the BNB Chain or Polygon, which typically incur lower gas fees.

1inch also aggregates liquidity from various DEXs, so the trading fees you encounter depend on where your trades are executed. For example, Uniswap might charge a flat fee, whereas another DEX's fees vary depending on the liquidity pool. Take note here that 1inch exchange fees also apply when withdrawing liquidity from the platform's pool, depending on the gas fees of the blockchain you use.

However, the DEX benefits from positive slippage or when trades are executed at better prices than expected. This not only generates revenue for the platform but also favors you with a share of 1inch exchange fees from partnered liquidity pools.

How to Use 1inch Exchange

Up to this point of 1inch review, I've shown you how the platform simplifies cryptocurrency trading with its DEX discovery algorithm and more. Next up, especially if you're curious, let's find out how to use the 1inch exchange.

I'll go through the process for signing up and swapping tokens. So, let's get started.

Step 1: Visit the 1inch website and connect your cryptocurrency wallet (e.g. Ledger Nano X, SafePal S1, or Trezor Safe 5). Click on the "Connect Wallet" button in the upper right corner. Once your wallet is connected, you'll be prompted to accept the terms and choose your preferred blockchain network, such as Ethereum or BNB Chain.

Step 2: Select your trading tokens from the displayed selections. On 1inch, there is quite a spread of cryptocurrencies available, complete with the comparison chart of exchange rates across different DEXs, and understanding this step is key to the overall process of how to use the 1inch exchange.

If the token you're looking for isn't listed, you can easily add it by tapping the small plus icon in the order entry box.

Step 3: Time to swap! Decide if you want to make a market order or set a limit order and whether you're aiming for the best exchange rate or the lowest gas fees. Pay attention to details like exchange rates, the estimated USD value, and anticipated fees in this "How to use 1inch exchange" tutorial.

Step 4: Next, choose how you'd like to unlock your tokens, whether it's just for this transaction or using the Infinity Unlock. Although the latter option can be more secure, it can also be costlier in the long run.

Step 5: Confirm your swap by hitting the "Swap Now" button once the token is unlocked. A final summary of your transaction will pop up for verification. Once everything looks good, approve the swap in your wallet. Your transaction will then make its way to the blockchain, finalizing your token swap.

Overall, understanding how to use the 1inch exchange is simple once your wallet is connected, and the steps laid out make trading on the platform intuitive.

Pros

• Very low trading fees
• Exceptional functionality
• Mobile trading app

Main Features

• Very competitive trading fees
• An intuitive mobile app
• Up to 100x leverage available

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Pros

• A very well-known crypto exchange platform
• More than 500 different cryptos available
• Two-factor authentication

Main Features

• Over 500 different cryptocurrencies available
• Strong security
• Small withdrawal fees

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Pros

• Fully reserved and transparent
• Multiple tradable asset classes
• Early new token support

Main Features

• 265 supports cryptocurrencies
• Secure & transparent
• Fully reserved

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Conclusion

So, what is the main takeaway of this 1inch review? The platform excels at finding the best rates across decentralized platforms, establishing its position as a key player for traders looking to cut costs. Furthermore, its low fees, vast token support, and smart features like slippage protection streamline the trading process for users who know their way around DeFi.

Despite its strengths, 1inch isn't without its downsides. Beginners might find the platform complex, and the lack of direct debit/credit card payment adds extra steps for those who prefer traditional currencies. Inconsistent transaction speeds during network congestion can also present challenges.

Overall, 1inch is best suited for DEX-experienced traders seeking cost-effective solutions. Its low fees and security features make it a strong contender, but if ease of use and flexible payment methods are your priority, other platforms like Kraken, BYDFi, or KuCoin may be suitable.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. M. Husni, H. T. Ciptaningtyas, W. Suadi, et al.: ‘Security Audit in Cloud-Based Server by Using Encrypted Data AES-256 and SHA-256’;

2. H. Farag, D. Luo, L. Yarovaya, et al.: ‘Returns from Liquidity Provision in Cryptocurrency Markets’.