What is a decentralized exchange and how it works?
Decentralized exchanges allow people to exchange cryptocurrency tokens directly with each other.
The main difference between such exchanges from centralized ones is that they are not controlled by a specific person or company, which issue guarantees for the safety of users' funds. Decentralized sites are curated either automatically or with the participation of all its participants. Blockchain ensures the safety of money.
DEX platforms have some advantages over centralized crypto exchanges and some disadvantages.
The decentralized exchange uses smart contracts (a protocol that runs automatically) to facilitate trading. In this case, the tokens remain on the user's wallet.
Trading operations on DEX platforms can be carried out in three ways:
- in-chain order book;
- off-chain order book;
- automatic market maker.
The obvious advantages of DEX platforms over CEX platforms are as follows:
- Easy access to financial services, especially for those who, for some reason, are isolated from access to the current financial system.
- The rules for carrying out business transactions are recorded in a smart contract. Once launched, the DeFi app can run on its own with minimal or no human intervention.
- Control over the ecosystem is evenly distributed among all network participants.
- Transactions are executed quickly and without a chain of intermediaries, which reduces commission costs.
- The application source code is open for study, which allows any user to understand the functionality of the contract or identify vulnerabilities.
- Anyone can create an application and use it. New services can be created by combining other products.
- Unlike the traditional financial sector, there are no controllers and accounts that require complex forms to be filled out.
These and other factors have contributed to the rapid rise in popularity of DEX platforms. If the trend continues, then we are likely to see more technological innovations throughout the industry.
What is Matcha?
Against the background of the rapid development of the direction of decentralized financial, it has become difficult for many users to navigate in many DEX sites and platforms. Aggregators of liquidity came to the rescue, which began to accumulate from many cryptocurrency exchanges, giving users the most advantageous offers.
What is Matcha? These are liquidity aggregators. The platform accumulates liquidity from various cryptocurrency platforms and provides users with the most favorable conditions for exchanging cryptocurrencies.
In this regard, the sphere of centralized finance does not differ from the markets. For example, in the Forex market, both well-known banks (J.P Morgan, Citibank and others) and liquidity aggregators (LMAX Exchange, Currenex, Integral and others) can act as liquidity providers for brokerage companies.
Matcha is the same liquidity aggregator, but only in the area of the decentralized cryptocurrency market.
Decentralized platforms are actively developing, but so far they remain limited in their capabilities, therefore, they provide users with a limited set of trading tools. In particular, about 20 cryptocurrency pairs are now available on the Matcha trading platform. Perhaps in the future, the platform developers will more significantly expand the list of available tools.
Types of orders
One advantage of the Matcha platform over its competitors is the availability of limit orders for some trading instruments. The presence of limit orders expands the trader's capabilities allowing him to apply a wider range of trading strategies and save time.
You don't have to sit and wait for the price to reach the level at which you want to buy or sell the coin. You place a limit order at the price you need, and your order will be executed as soon as the price reaches this level.
The Matcha trading platform currently supports a limited number of cryptocurrency wallets:
- Coinbase Wallet;
The platform is completely free for all users. But when making a trade, you still have to pay for Ethereum gas and a small commission for using the 0x protocol.
All decentralized platforms have both advantages and disadvantages over centralized platforms. Moreover, each decentralized site has differences and features in comparison with their counterparts.
The main difference between Matcha and direct competitors is the presence of an intuitive interface, which is maximally focused on user-friendliness.
Even a person who has never worked with the platform will immediately understand how to trade on Matcha.
Benefits of Matcha
Decentralized platforms have a significant set of advantages over centralized exchanges. One of the main benefits is higher security and privacy. There is no need to go through the verification procedure, and all the user's funds remain in his own wallet.
All trading operations are carried out directly between users. The platform acts only as an intermediary. In this case, the safety of funds depends only on the user himself and the wallet that he uses.
How to start trading on Matcha in New Zealand?
How to trade on Matcha in New Zealand? Everything is very simple. Open the Matcha trading platform, connect a cryptocurrency wallet and trade, getting the most profitable quotes.
Everything is as clear as possible, even for novice users.
Connect wallet to Matcha
How to trade on Matcha? First, you need to connect a wallet to the platform. The process of connecting a wallet to the Matcha platform is simplified as much as possible. On the site, you need to select the wallet that suits you and click the "connect" button. That's it, within a few seconds the wallet will be connected, and you will get access to all the functionality of the platform.
MetaMask is a handy application that integrates into the Google Chrome browser to facilitate the transfer of Ethereum (ETH) or ERC 20 tokens to the Ethereum blockchain. If you already have an Ethereum wallet, you can import it into MetaMask. The MetaMask app works with the following browsers:
- Google chrome.
Popular hardware wallets can be connected using MetaMask in the Matcha platform.
Coinbase Wallet is a mobile crypto wallet that allows you to easily manage all your assets, send cryptocurrencies by name instead of addresses, and use decentralized apps. It features a good level of safety and high comfort of use.
Coinbase Wallet connects very easily to the Matcha trading platform. You need to press one button and wait a few seconds. YouTube has a detailed video on how to open Coinbase Wallet and connect it to Matcha.
WalletConnect is a popular protocol used by encrypted wallets that makes it easy to connect to many DEX sites. You can connect using a QR code or direct link.
Connecting WalletConnect to Matcha is quick and easy, too. One press of a button, a few seconds of waiting, and that's it.
Bitski is a user-friendly web wallet that easily connects to the Matcha platform.
Find the trading pair to trade
Like many other DEX platforms, the Matcha platform does not yet boast a wide range of trading tools. In 2021, there were about 20 cryptocurrency pairs available on the platform. At the same time, trading with limit orders is not available on all of them.
Make a trade
What really sets Matcha apart from the competition is its simplicity and ease of use. A couple of clicks, connecting a crypto wallet and that's it, you can trade.
The process of performing trading operations is also very simple and can be partially comparable to trading binary options. You simply choose a direction, buy or sell, and open a position.
Limit orders can be placed for some currency pairs. In this case, it is necessary to indicate the price at which the trade operation will be executed and the duration of the limit order.
Alternatives to Matcha
The Matcha platform is not unique. In the decentralized liquidity aggregators below, there are other platforms that can boast of a go-to functionality. Perhaps this is a positive signal, since competition will contribute to the further development of this direction of the cryptocurrency market.
The most popular platforms include B2BX and Paraswap.
Below we will look at the answers to the most popular questions that will allow you to better understand what is Matcha and how to trade on Matcha in New Zealand?
How does Matcha offer the best prices?
The platform aggregates liquidity from many trading platforms and provides the user with the most attractive price.
How is Matcha different from other exchanges?
The Matcha platform differs from its closest competitors in a friendly and intuitive interface. Even a beginner can easily use the platform.
What kinds of users and organization types does Matcha work with?
The platform works with users all over the world and with many cryptocurrency exchanges.
What languages does Matcha support in their product?
Unfortunately, so far the platform only supports English, but it is possible that support for other popular languages will appear in the future.
What other applications or services does Matcha integrate with?
Matcha is integrated with a wide variety of trading platforms. There are already more than 30 of them.
What type of training does Matcha provide?
To start trading with Matcha you don't need to spend many hours learning. Even a user who does not know what Matcha is and hears about the platform for the first time will be able to trade on it in a few minutes.
Why you can trust Matcha to securely swap your tokens?
Matcha is a decentralized platform. Therefore, all the client's funds throughout the entire process of interaction with the platform remain in the user's wallet. All interaction takes place through smart contracts, which have an open source cat and have been audited.
How Matcha is safer to use than a centralized exchange?
When interacting with Matcha, all client funds are stored in his own wallet. When working with centralized sites, funds are not stored on the user's wallet. It is not uncommon for centralized crypto exchanges to be hacked and clients' funds were stolen. In this regard, Matcha provides more protection.
Where you can use Matcha to trade?
You can use Matcha for both simple cryptocurrency exchange and trading.
What exchange networks does Matcha aggregate liquidity from?
Matcha collects liquidity from over 30 trading platforms. This list is constantly expanding.
What Ethereum wallets are supported?
Matcha supports popular cryptocurrency wallets such as: MetaMask, Coinbase Wallet, WalletConnect, Bitski.
How do I link Coinbase wallet to Matcha?
The process of connecting to Coinbase wallet is simplified as much as possible. You need to press the button “connect Coinbase wallet” and that's it.
How do you connect Matcha to ledger?
Matcha does not directly work with hardware wallets, but you can connect Ledger through MetaMask. The instruction is on the project website.
How does Matcha connect to Metamask?
The Metamask connection process is simplified as much as possible. You need to click the "connect Metamask" button and that's it.
Is there a Matcha token?
The platform does not yet have its own token.
Is Matcha crypto safe?
The Matcha platform does not have access to your funds. They are stored in the user's wallet.
Interaction with the platform takes place through smart contracts. At Matcha, they are open source and security audited.