What is a decentralized exchange and how it works?
A decentralized exchange is an exchange where all trading operations are performed on the basis of smart contracts, users have complete control over their wallets, and the transactions themselves are made directly by users - without an exchange as an intermediary.
We can call an exchange decentralized if it has the following characteristics:
- Wallet, account is fully owned by the user. This means that you are not creating a wallet on the exchange, but adding your own. Even if the exchange has the function of creating a wallet, it still belongs to you and the exchange cannot restrict your access to this wallet or make transactions with funds on it.
- Trade transactions are made using smart contracts and processed on the blockchain. This means, if you created an order, and some other user responded to it, the exchange cannot influence the process of making a deal in any way, because it is processed on the blockchain.
Benefits of decentralized exchanges:
- Anonymity - you don't go through the KYC process.
- Full control over your funds - your wallet and the funds on it belong to you and are stored in your wallet, and not on the exchange wallet.
- Security - your login information, your funds are not stored on the servers of the exchange, therefore, it is impossible to hack into your account.
Disadvantages of decentralized exchanges:
- Lack of many tools that a trader needs - margin trading, stop loss trading robots, etc.
- It is impossible to restore access to the wallet if you have lost your login data.
- It is impossible to cancel the operation if you made a mistake when entering the address or amount.
- On decentralized exchanges, you can trade only those assets that support smart contracts.
- Slow order processing - depending on the network load, the completion of transactions can take hours.
Centralized exchanges are better suited for trading due to their rich functionality and the ability to add an unlimited number of assets, while decentralized exchanges are more secure for users and better suited for exchanging cryptocurrencies and tokenized assets.
Therefore, if you choose the type of exchange you want to work on:
- Centralized exchanges for earning.
- Decentralized exchanges for exchange.
What suits you best is up to you.
What is Matcha?
Matcha is a decentralized platform that differs from most competitors in that it is also a liquidity aggregator.
With the help of a special 0x protocol, your exchange request can be split among several DEXs, so that you will get the most favorable price for the exchange.
Accordingly, the main advantage of trading on Matcha is that you simultaneously trade on all the exchanges that the platform unites (now there are more than 30 of them). You don't have to go to all these exchanges and look for the best price. Matcha does it for you.
Like other DEXs, Matcha suffers from a limited set of trading features and tools. Currently, over 20 cryptocurrencies are available for exchange on the platform.
At the same time, trading functions for some instruments are limited only to simple buy or sell orders.
Types of orders
The developers are constantly working on expanding the functionality and have already added the ability to place limit orders.
A limit order is an order to buy or sell at a specified price or better. A limit order excludes the possibility of execution at a less favorable price than a limit order, however, its execution is not guaranteed.
But, as mentioned above, limit orders are not available for all trading instruments.
The limited functionality of Matcha once again confirms the thesis that DEXs are more suitable for exchanging tokens, and not for trading. Perhaps the situation will change in the future, but so far it is.
The registration process on Matcha involves connecting a cryptocurrency wallet to the trading platform. The following wallets are currently available for connection:
- Coinbase Wallet.
All users can use the Matcha trading platform for free. But when making trade transactions, payments for Ethereum gas and the commission for using the 0x protocol have not been canceled.
All these costs are paid by the user himself.
DEX Matcha differs from most other exchanges in that it is also a liquidity aggregator. Thus, the platform can offer its clients a better price for the exchange than other platforms.
Benefits of Matcha
An important advantage of Matcha is its very simple interface. Even if you didn't know what is Matcha before, within a short time you can easily learn all the functionality.
This is important because many other DEXs are not very user-friendly.
How to start trading on Matcha in Nigeria?
If you were familiar with DEX before, then you will not have a question how to trade on Matcha in Nigeria. This platform is completely anonymous and can be used by people from different countries, including Nigeria.
Connect wallet to Matcha
How to trade on Matcha? The first step is to connect a cryptocurrency wallet to the platform. Only after that you will have access to all the functions of the exchange.
Any wallet supported by the platform can be connected in one click. The procedure is very simple. Even a person who does not know what is Matcha and how to trade on Matcha will be able to connect to the platform within 1 minute.
How to trade on Matcha in Nigeria? The easiest way to use Metamask wallet.
Metamask is a browser plugin (Chrome, Firefox, Opera) for fast payments and transfers of Ethereum and ERC-20 tokens. With it, you can make transfers directly from your browser without going into your main wallet.
You can also sync your MetaMask extension wallet to your mobile using the MetaMask Mobile Sync feature.
Coinbase Wallet is a standalone crypto wallet within the Coinbase ecosystem for securely storing cryptocurrencies and interacting with the decentralized network.
Any user can install the wallet; you do not need to register on Coinbase for this.
WalletConnect is an open protocol that brings all of your wallets together, whether you are a beginner or a power user. The open protocol allows a remote connection using a bridge server between two applications.
Another wallet supported by Matcha. The wallet connects to the exchange in one click.
Find the trading pair to trade
A complete list of available trading instruments is presented in the "Trade" section. The list is not very long, but the platform developers are working on expanding this list.
Make a trade
The user opens access to trading immediately after connecting the crypto wallet. In the section for trading, you can select the instruments you are interested in for exchange. You can immediately exchange the asset you are interested in for another.
The function of placing a limit order is also available for some instruments.
Alternatives to Matcha
The Matcha trading platform has competitors. One of the market leaders in this one below is the 1inch platform. But Matcha beats its competitor with a more user-friendly and easy-to-use interface.
Even a beginner will immediately be able to understand how the platform works. But 1inch can be difficult for beginners to learn.
How does Matcha offer the best prices?
Everything is very simple. Matcha integrates many exchanges, analyzes prices and offers users the best exchange price.
How is Matcha different from other exchanges?
First, DEX Matcha differs from others in its convenient and friendly interfaces.
What kinds of users and organization types does Matcha work with?
DEX can be used by users from all over the world.
What languages does Matcha support in their product?
So far, only English is supported.
What other applications or services does Matcha integrate with?
The Matcha trading platform is integrated with many DEX platforms. Thanks to this, users are provided with the most advantageous prices.
What type of training does Matcha provide?
The platform is intuitive and requires no additional training to use.
Why you can trust Matcha to securely swap your tokens?
Matcha uses robust smart contracts that have been well audited.
How Matcha is safer to use than a centralized exchange?
All user funds remain in his own wallet.
Where you can use Matcha to trade?
The Matcha trading platform can be used in almost any country.
What exchange networks does Matcha aggregate liquidity from?
More than 30 exchanges in total. The entire list is presented on the Matcha website.
What Ethereum wallets are supported?
The platform supports:
• Coinbase Wallet.
How do I link Coinbase wallet to Matcha?
Click the “Connect Coinbase” button.
How do you connect Matcha to ledger?
You can connect ledger to Matcha only through the Metamask application. The instruction is on the website.
How does Matcha connect to Metamask?
Click the "Connect Metamask" button.
Is there a Matcha token?
Is Matcha crypto safe?
Matcha is a highly secure platform.