What is a decentralized exchange and how does it work?
A decentralized exchange is an online digital asset exchange that works on the principle of decentralization. Such an exchange does not store data about users and their funds, but is only a platform for conducting transactions without intermediaries (p2p).
Not all cryptocurrency exchanges that call decentralization as their feature are such. One of the main differences between decentralized exchanges is the absence of the KYC process and, as a result, the lack of the possibility for the user to recover their data. This can be attributed to both disadvantages and advantages of DEX.
The classic centralized exchange runs on servers with computer hardware. It is usually located at the company's headquarters. Thus, it is quite possible to carry out a hacker attack on these exchanges to steal personal information and money from users.
A decentralized exchange that uses blockchain technology is more secure. Fraudsters can only try to penetrate the structure of smart contracts of the DEX exchange, as well as to the server on which the official website of the decentralized exchange is located. This is its main advantage over a centralized platform for cryptocurrencies.
What is Matcha?
The rise in the number of decentralized exchanges creates certain difficulties for some users, especially for beginners. Therefore, DeFi aggregators began to appear on the market. Such platforms allow you to manage your investment portfolio, buy and sell digital assets at the best prices, and monitor projects on the DeFi market.
One such liquidity aggregator is the Matcha platform. The project was created in 2020 by the 0x team.
0x is a project founded by Amir Bandiali and Will Warren. 0x is a platform for building decentralized exchanges. The protocol developed by 0x is actively used by many decentralized projects. Matcha is the first product produced by the 0x team.
The Matcha platform brings together many of the leading DEXs including Uniswap, Kyber, Curve, Bancor and more. By aggregating this liquidity, the platform provides its clients with the most favorable conditions for making a deal to buy or sell tokens.
At the moment, the platform cannot boast of having many trading instruments. There are now about 20 cryptocurrency pairs available. But the creators of the platform are constantly working to expand the functionality and available trading tools.
Types of orders
Several types of orders are available on the platform. These are standard buy and sell orders and limit orders.
A limit order is an order to buy or sell at a specific price.
Since Matcha is a decentralized exchange, limit orders work a little differently than on a centralized exchange:
- When executing a limit order, you do not pay Ethereum gas fees and 0x protocol fees.
- Limit orders are partially executable. They will remain open until they are 100% full or until they expire.
- Limit orders are currently not available in the ETH markets. They are only available in the ERC-20 token markets, including the WETH markets.
- You can set the order limit for 10 minutes, 1 hour (default), 24 hours, 3 days, 7 days. You can cancel a limit order at any time. This will require you to pay a small amount of ETH to cover the gas charge for the cancellation transaction. Deadline orders are automatically canceled free of charge.
The platform currently supports 4 cryptocurrency wallets:
- Coinbase Wallet.
The use of the platform is absolutely free for users. But when making trading operations, you will have to pay the cost of Ethereum gas and the commission for the 0x protocol.
Matcha platform has all the distinctive features of DEX platforms. Therefore, in comparison with CEX-exchanges, it has both certain advantages and disadvantages.
Among the main advantages of DEX-sites, as a rule, high anonymity and security are highlighted.
Benefits of Matcha
Like other DEX platforms, Matcha has the following advantages over CEX platforms:
- decentralized exchanges provide complete user anonymity;
- a decentralized exchange does not store user assets, therefore, neither hacker attacks nor the complete collapse of the exchange itself threaten to lose funds;
- a decentralized exchange does not have a single entry point through which one could gain access to all assets and data, which complicates the work of hackers and makes the attack itself pointless;
- there are no personal accounts on the decentralized exchange, no verification is required, and you don't even need to provide email, so no one can use or steal personal data of users;
- the decentralized exchange has no management interested in manipulating prices within the exchange.
Since the exchange has a distributed architecture, the authorities cannot close it or freeze your account.
How to start trading on Matcha in India?
How to trade on Matcha in India? Everything is very simple. Go to the Matcha website, connect the wallet (the process takes no more than 30 seconds) and trade.
The registration procedure is simplified as much as possible, and the functionality is very simple. Therefore, even a beginner will not have the question of how to trade on Matcha. Even if you didn't know what Matcha was before, within a short time, you could easily use all the functionality of the trading platform.
Connect wallet to Matcha
On the Matcha trading platform, the process of connecting a cryptocurrency wallet is simplified as much as possible. You need to select a wallet from the available list and click the "connect" button.
MetaMask is a browser extension designed to facilitate access to the Ethereum Dapp ecosystem. It also serves as a wallet for storing ERC-20 tokens, allowing users to access services created on the network through the wallet.
To connect MetaMask to Matcha, you need to click the "connect MetaMask" button.
Coinbase Wallet is a hot type of cryptocurrency wallet, which automatically makes it vulnerable to hacker attacks. Nevertheless, the company has foreseen and implemented a number of measures aimed at improving the reliability of the application.
Coinbase Wallet users have access to a system of cold storage of cryptocurrency on servers disconnected from the network. When funds are credited to a wallet, the system separates them and only 2% of the total amount remains on the online resource, and the remaining 98% are sent to offline storage.
The Matcha trading platform also works with Coinbase Wallet. To connect the wallet to the platform, you need to click the "connect Coinbase Wallet" button.
WalletConnect is a connection protocol already used by over 20 mobile wallets, including Trust Wallet, MetaMask, Coinomi, and more.
The Matcha trading platform also supports wallet connection via WalletConnect.
Bitski is another web wallet that can be connected to Matcha in one click.
Find the trading pair to trade
The most popular trading pairs are listed on the home page of the Matcha website. By clicking on any of these instruments, a page for trading opens, where all trading pairs presented on the platform are already available. Now there are about 20 of them.
Make a trade
Even if you didn't know what Matcha is before, you can easily understand how to make trading operations. You simply choose the instrument and the direction of the trade (buy or sell).
For some instruments, limit orders are also available. In this case, you still need to set the order execution price and the duration of the limit order.
Alternatives to Matcha
The Matcha platform is not unique. In parallel, other projects are developing that can offer users similar functionality. In this regard, the main advantage of Matcha is its very simple functionality.
Even a beginner can figure out how the platform works in a few minutes.
Below, we take a look at the most popular questions about what is Matcha and how to trade on Matcha in India.
How does Matcha offer the best prices?
Currently, the platform aggregates liquidity from many decentralized platforms, about 30. At the same time, the owners of the Matcha project are working to expand this list in order to provide clients with the most favorable conditions.
How is Matcha different from other exchanges?
The platform has a very friendly and intuitive interface. Even if you didn't know what Matcha is before, you can easily master the platform in a few minutes.
What kinds of users and organization types does Matcha work with?
Matcha refers to DEX platforms. Therefore, it is not regulated by government agencies and can work with clients all over the world.
What languages does Matcha support in their product?
Currently, the platform only supports one language, English.
What other applications or services does Matcha integrate with?
At the moment, the Matcha trading platform is integrated with many DEX-exchanges, about 30. The full list is presented on the platform's website.
What type of training does Matcha provide?
There is no training section on the platform website. The functionality is made in such a way that even a beginner can quickly figure out the features of the platform. The question of how to trade on Matcha will not arise.
Why you can trust Matcha to securely swap your tokens?
Like other DEX platforms, Matcha provides users with a high degree of anonymity and security.
How Matcha is safer to use than a centralized exchange?
Yes. Matcha provides more anonymity and security than CEX platforms.
Where you can use Matcha to trade?
You can use Matcha in most countries in the world. It is a decentralized platform so regulators cannot block it.
What exchange networks does Matcha aggregate liquidity from?
Currently, the Matcha trading platform aggregates liquidity from about 30 exchanges.
What Ethereum wallets are supported?
The platform currently supports 4 wallets: MetaMask, Coinbase Wallet, WalletConnect, Bitski.
How do you connect Matcha to Ledger?
To connect Ledger to Matcha, you need to use the MetaMask application.
How does Matcha connect to Metamask?
Click the “Connect Metamask” button on the Matcha website.
Is there a Matcha token?
The Matcha trading platform does not have its own token.
Is Matcha crypto safe?
The platform provides a high degree of security for funds. All funds remain in your wallet.