What is a decentralized exchange and how does it work?
Large cryptocurrency platforms violate the basic principles of digital money - users must be identified, and their coins are stored in company accounts. This is one of the reasons why platforms operating according to different rules have been rapidly developing in recent years.
A decentralized financial system is the main feature of most digital money. But so far, their exchange mainly takes place on large centralized trading platforms that obey the rules of local financial regulators, require personal data from users and can transfer information about transactions to the government, which completely destroys the principles of cryptocurrencies.
Decentralized exchanges, or DEXs, have been created specifically to bypass such platforms. The principle of operation of such a site is based on a peer-to-peer p2p network - all participants have equal opportunities. Its system is open source, no one controls the exchange. The user can make transactions without intermediaries.
The exchange system uses clients' computers to create a single network, while there is no specific center. Traders and investors do not need to worry about hacker attacks or technical problems, since the funds are kept by the client of the site, and not by third parties.
The main advantages of such exchanges are complete anonymity - a trader does not need to identify himself to work, security of funds storage and open source code. However, decentralized platforms are more difficult to work with due to the fewer tools to trade. These exchanges are not in high demand compared to traditional exchanges, so they have low trading volumes and low liquidity.
Decentralized trading platforms are in the development stage. The creation of such exchangers is more complicated and expensive. These exchanges are built on a specific blockchain - most often on the Ethereum network.
Despite the presence of problems, this market continues to develop actively and quite successfully solves many of the problems facing DEX. Thanks to this, in some parameters, DEX sites can already be compared with CEX platforms.
What is Matcha?
The explosive growth of the DEX market has created a new problem. It has become difficult for many users to navigate DEX. The list of instruments, and the exchange conditions on many sites differ significantly. Which complicates the process of exchanging tokens.
In addition, many platforms have complex functionality that is not always clear to new market participants.
What is Matcha? It is a DEX platform that solves the above problems.
Matcha is a DEX liquidity aggregator. The protocol on which the platform operates collects liquidity from many exchanges and determines the most favorable conditions (price) for the exchange of tokens. All applications from platform users are sent to sites that offer the best price for the exchange.
This approach greatly facilitates the process of finding favorable conditions for the exchange and saves time. Working through the Matcha trading platform, you will always be sure that your order will be executed at the best price on the market.
Like other DEXs, the choice of exchange tools on Matcha is limited. So far, about 20 tokens can be exchanged on the platform.
Perhaps in the future the list of tools will be expanded, but so far Matcha and other DEX platforms are significantly inferior to their CEX counterparts.
Types of orders
It should be understood that Matcha is primarily a platform for a profitable exchange of tokens, and not a trading platform. This platform is not quite suitable for trading.
Therefore, the basic functionality of the platform was initially limited to standard orders to buy or sell an asset. Later, limit orders were added, which somewhat expanded the possibilities for exchange, but still do not allow full use of the platform for short-term trading (trading).
How to trade on Matcha? This is very easy to do. You need to connect a wallet. Immediately after that, you will have access to all the platform's functions and you can start trading on Matcha.
The platform currently supports 4 popular wallets. Therefore, in order to start trading on the platform, you need to open one of the following wallets:
- Coinbase Wallet.
Any user can use the platform for free, but you will be charged Ethereum gas fees and 0x usage fees while making exchange transactions.
An experienced development team is behind the creation of the Matcha platform, who previously introduced a universal protocol for working with DEX - 0x. It is the 0x command that is behind the creation of Matcha. This project is a logical continuation of their idea of improving the DEX and providing traders with optimal conditions for the exchange.
Benefits of Matcha
The main advantage of Matcha over similar platforms is its simple and user-friendly interface. Even a user who did not previously know what is Matcha in a short time will be able to fully understand how to work with the platform.
At the same time, many other DEXs do not yet have a very user-friendly interface and it is difficult for beginners to understand them.
How to start trading on Matcha in South Africa?
How to trade on Matcha in South Africa? In fact, everything is very simple. You need to connect the wallet to the platform (the process takes no more than 1 minute) and you can start trading.
It does not matter where you are from South Africa, Nigeria, Nepal or another country. Wherever there is internet, you can use the Matcha trading platform.
Connect wallet to Matcha
How to trade on Matcha? The first step is to connect the cryptocurrency wallet to the platform.
To do this, on the main page, you must click the "Connect wallet" button. From the list you need to select the wallet that suits you and click the "connect" button. Within a few seconds, a connection will be made, and you can start exchanging tokens.
This is one of the more popular wallets that Matcha works with. It easily connects to Matcha and can also be used as an intermediary to connect other wallets to the platform.
It is an equally popular wallet that also connects very easily to Matcha.
It is not just a cryptocurrency wallet, it is an open source protocol that supports many other cryptocurrency wallets. With this protocol, you can easily connect your wallet to DEX platforms, including the Matcha trading platform.
It is not as popular as the previous three, but it is a fairly user-friendly web wallet that can be easily connected to Matcha as well.
Find the trading pair to trade
To start trading on Matcha, you need to select a currency pair to exchange. This can be done both on the main page and in the special section “Trade”.
Make a trade
How to trade on Matcha in South Africa? To make a trade, you need to select a currency pair for exchange and the direction of exchange. After that it is necessary to press the button “Review Order”.
When placing a limit order, you will also need to indicate the order execution price and the time during which the order will remain relevant.
Alternatives to Matcha
Matcha occupies a rather narrow niche, but this platform also has its competitors. Probably the most popular DEX liquidity aggregator right now is the 1inch platform.
This project appeared in 2019, a year earlier than Matcha, and managed to gain popularity. It has similar functionality to Matcha.
There are other liquidity aggregators on the market, but they are less popular than 1inch.
How does Matcha offer the best prices?
The platform aggregates liquidity from many exchanges and transmits the trader's application to the exchange that offers the best price for the exchange.
How is Matcha different from other exchanges?
Matcha has a very user-friendly interface that will be easy to understand even for beginners.
What kinds of users and organization types does Matcha work with?
The platform does not place restrictions on use for users and organizations.
What languages does Matcha support in their product?
So far, only English.
What other applications or services does Matcha integrate with?
The platform is now integrated with many exchanges. Their list is regularly expanding.
What type of training does Matcha provide?
The platform is very simple and no additional training required.
Why can you trust Matcha to securely swap your tokens?
This is DEX, so during the work, all the money remains in your wallet. You do not transfer them to the platform.
How is Matcha safer to use than a centralized exchange?
The platform provides more anonymity and security.
Where can you use Matcha to trade?
First, the platform is designed for a profitable exchange of tokens.
What exchange networks does Matcha aggregate liquidity from?
Now more than 30 exchanges are connected to the platform.
What Ethereum wallets are supported?
- Coinbase Wallet.
How do I link a Coinbase wallet to Matcha?
You must select “connect Coinbase”.
How do you connect Matcha to a Ledger?
You cannot connect Ledger directly to Matcha. This can be done for example through Metamask.
How does Matcha connect to Metamask?
You must select "connect Metamask".
Is there a Matcha token?
Is Matcha crypto safe?
The platform can provide a high level of reliability and safety of your funds.