What is a decentralized exchange and how does it work?
A decentralized exchange (DEX) is an exchange that operates on the basis of a distributed ledger, does not store funds and personal data of users on its servers and acts only as a platform for searching for matches on orders to buy or sell assets.
In 2009, a revolution took place: the first decentralized P2P currency was born - Bitcoin. The vision and ideals of Satoshi Nakamoto have inspired millions of people around the world, and other cryptocurrencies have gradually followed Bitcoin. The rapid development of the cryptocurrency ecosystem dictated the need for the exchange of cryptoassets, and on March 17, 2010, the first cryptocurrency exchange, Bitcoinmarket.com, was launched.
The increase in the number of crypto exchanges has provided massive growth in crypto markets. All of these exchanges were centralized: they were run by the creators. Many representatives of the crypto community saw this as a serious problem and even considered centralization a "betrayal" of the original concept of bitcoin.
The problem was not only ideological: users were forced to transfer control of their assets to a third party, and for hackers, centralized exchanges became easy prey. The crypto community soon realized that the concept of bitcoin and decentralized money needed to be applied to exchanges as well.
On January 3, 2014, NXT announced the creation of a decentralized exchange. Soon, the NXT Asset Exchange was launched, one of the first DEXs. In the NXT ecosystem, tokens were created using the NXT cryptocurrency to represent bonds (bonds) and other assets. Subsequently, such a system for creating assets on existing blockchains was called "colored coins".
However, in this early DEX iteration, assets could only be traded for NXT coin. Direct exchange of assets was not available. In addition, colored coins could only be sent to wallets that supported the Open Assets Protocol.
The DEX ecosystem continued to grow and change. Multi-gateway - a project in the NXT ecosystem - evolved into Supernet, which created the Komodo platform in 2016. Towards the end of 2014, it became obvious that a truly decentralized trading system never appeared: all existing systems either provided for complex and slow deposit mechanisms, or trading was limited to the assets of a specific blockchain.
Trading can be truly decentralized only if the four main components of trading are decentralized:
- Capital deposit
- Order notification
- Reconciliation of orders
- Token exchange
Centralized exchanges are managed from a single center. Managers are responsible for protecting user data and information about trading, fully control the operation of the platform and independently make decisions that are important for the development of the project.
Decentralized exchanges are managed automatically or semi-automatically, with the involvement of platform participants in the key decision-making process. Such platforms provide the technical possibility of direct interaction between participants and use a distributed ledger (blockchain) to store and process all (or almost all) of the data.
What is Matcha?
Matcha is one of the DEX exchanges, but it has its own peculiarities. This is not just a trading platform, it is a liquidity aggregator. The platform integrates and analyzes prices from more than 30 exchanges and sends users' orders to sites that are currently offering the most favorable prices.
This makes life much easier for traders. You no longer need to monitor many exchanges to find the most favorable exchange conditions. Matcha does it all for you. Having received an exchange request from you, the platform will send it to the place where the best exchange price is.
Therefore, if you did not know what is Matcha and what is DEX liquidity aggregator before, you should definitely familiarize yourself with this information.
How to trade on Matcha and what instruments are available for trading? At the moment, about 20 different digital coins can be exchanged on the platform. The entire list of available instruments is available in the “Trader” section.
Types of orders
Matcha is primarily a platform for a profitable exchange of tokens. It is not very suitable for trading. Nevertheless, in addition to the standard buy or sell orders, there is the possibility of placing limit orders here.
They are not available on all instruments, but most exchange directions still support limit orders. They can be exhibited both indefinitely and for a certain period.
Other orders (stop loss, take profit, etc.) are not yet available on the platform.
How to trade on Matcha? To work with any DEX platform, you must have a crypto wheel. By connecting a crypto wallet to the platform, you immediately get access to all functions.
Matcha supports several popular cryptocurrency wallets:
- Coinbase Wallet
The process of connecting a wallet to the platform takes no more than half a minute. Those. even a person who does not know what is Matcha and how to work with DEX will be able to easily connect to the platform.
Any user can use the Matcha trading platform absolutely free. But the traditional Ethereum gas fees still have to be paid.
There is also a small fee to pay for using the 0x protocol.
The platform was launched in 2020. The developers were the 0x team, which previously successfully developed the 0x protocol for DEX. Now this protocol is used by many projects.
Thus, the platform is being implemented by a successful team that has already created several successful developments in the blockchain field.
Benefits of Matcha
Compared to other exchanges, Matcha offers its clients a more user-friendly interface and the most favorable conditions for exchanging tokens. By exchanging tokens on Matcha, you always know that your order will be executed at the best price among more than 30 exchanges.
How to start trading on Matcha in Kenya?
How to trade on Matcha in Kenya? There are no exceptions or limitations for Kenya. Even if you don't know what is Matcha, you can easily get started on the platform.
To start, you need to connect your wallet to the platform. After that, you get access to all functions and can start trading immediately.
Connect wallet to Matcha
The registration process for all DEXs is as simple as possible. You do not need to provide your details, phone number, mailbox or other confidential information. You just connect your wallet and trade.
To connect, you need to select the available wallets from the list and click the "connect" button. After a few seconds, the connection will pass and you will have full access to the site's functions.
Metamask is a cryptocurrency wallet. With its help, you can interact with various decentralized applications built on the basis of the second largest cryptocurrency in terms of capitalization - Ethereum (ETH).
The crypto wallet is presented in the formats of a browser extension and a mobile application.
This wallet easily connects to Matcha.
Coinbase Wallet is another popular cryptocurrency wallet developed by Coinbase. You don't need to be a Coinbase customer to open a wallet. Therefore, many users prefer this wallet.
This wallet easily connects to Matcha.
WalletConnect is a very interesting protocol that is open source. It allows you to connect to DApps by link or QR code. In the same way, you can connect this wallet to Matcha.
Bitski is not as popular as previous wallets, but it is also a fairly user-friendly web wallet that easily interacts with Matcha trading platform.
Find the trading pair to trade
All tokens available for exchange are presented in the "Trade" section. To make an exchange, you need to select instruments from the list and select the direction of exchange.
Make a trade
Having chosen the instruments for the exchange and the direction, you can easily make a deal by clicking on the Review order button.
To place a limit order, you must click on the corresponding tab. You will be prompted to enter the order execution price and the time of its action.
Alternatives to Matcha
There are other analogues of the Matcha platform on the market now. The platforms offer similar functionality and are generally similar to each other.
It should be noted here that the DEX market is now in an active stage of development, therefore, competing with each other, similar sites give an impetus for the development of each other. Time will tell who will win in this competitive struggle.
If you still don't understand what is Matcha and how to trade on Matcha in Kenya. We invite you to familiarize yourself with the most frequently asked questions.
How does Matcha offer the best prices?
The platform automatically monitors offers from more than 30 sites and sends the user's request to the platform that offers the best exchange conditions.
How is Matcha different from other exchanges?
Matcha is not just an exchange, it is a DEX liquidity aggregator.
What kinds of users and organization types does Matcha work with?
The platform does not impose restrictions on use for traders and organizations.
What languages does Matcha support in their product?
Now only English.
What other applications or services does Matcha integrate with?
The platform works with more than 30 exchanges and this list is constantly expanding.
What type of training does Matcha provide?
The platform is very easy to use and requires no additional training.
Why can you trust Matcha to securely swap your tokens?
The platform acts as an intermediary and does not have access to your funds. They are always in your wallet.
How Matcha is safer to use than a centralized exchange?
The main difference is a higher level of security and anonymity.
Where you can use Matcha to trade?
The platform is mainly used for the exchange of tokens.
What exchange networks does Matcha aggregate liquidity from?
Now the platform works with a large list of sites. All exchanges are presented on the site.
What Ethereum wallets are supported?
MetaMask, Coinbase Wallet, WalletConnect, Bitski.
How do I link Coinbase wallet to Matcha?
Click the Connect Coinbase button.
How do you connect Matcha to ledger?
Ledger does not directly connect to Matcha. This can be done via MetaMask.
How does Matcha connect to Metamask?
Click the Connect Metamask button.
Is there a Matcha token?
Is Matcha crypto safe?
The platform provides a high level of security.