Decentralised cryptocurrency exchange IDEX
What is IDEX
The decentralised cryptocurrency exchange IDEX trades digital currency. It stands for “Decentralised Exchange” and enables users to trade Ethereum-based tokens with one another directly without the need for a central authority or middleman.
Users of IDEX have complete control of their assets at all times and are not required to deposit their tokens onto the exchange itself because it provides a non-custodial trading environment.
Instead, when consumers wish to trade, they connect their wallets to the exchange where they keep their assets. As their assets are not held by a third party, users have more control and security over them.
Since its 2017 introduction, IDEX, which provides a large selection of trading pairs and sophisticated trading tools, has grown to become one of the most well-known decentralised exchanges in the cryptocurrency industry.
It seeks to give consumers a secure, decentralised platform where they may trade cryptocurrencies without relying on a centralised organisation.
The history of IDEX
IDEX was founded in 2017 by Alex Wearn and Ray Pulver, who saw an opportunity to create a decentralized exchange that would offer users the same level of control and security as centralized exchanges, but without the risk of having their funds held by a third-party.
The exchange was launched in beta in October 2017 and quickly gained popularity in the cryptocurrency community. In early 2018, IDEX raised $2.5 million in a seed funding round led by GZR Capital, with participation from other investors including Distributed Global and 1confirmation.
Throughout 2018 and 2019, IDEX continued to grow and expand its offerings, adding new trading pairs, features, and integrations with other decentralized applications (dApps) built on the Ethereum blockchain. In October 2019, IDEX released a new version of its platform, IDEX 2.0, which offered improved performance and security features.
In 2020, IDEX launched a new service called IDEX staking, which allowed users to earn rewards by staking their IDXM tokens, the native token of the IDEX platform. The staking rewards were funded by a portion of the fees collected on the exchange.
Today, IDEX remains one of the most popular decentralized exchanges in the cryptocurrency space, with a strong focus on security, decentralization, and user control. The exchange continues to innovate and add new features to its platform, including support for new blockchain protocols beyond Ethereum.
How IDEX works
Here’s how it works:
- Users link their Ethereum wallets to the IDEX platform: Users must link their Ethereum wallets to the platform in order to utilise IDEX. By doing so, they can trade and deposit tokens based on Ethereum on the exchange.
- Orders are placed by users on the exchange: After joining IDEX, users can make orders to buy or sell tokens based on Ethereum. These orders are available for execution at any time and are kept on the Ethereum blockchain.
- The IDEX smart contract matches orders: To match buy and sell orders, IDEX uses a smart contract on the Ethereum blockchain. When the criteria of a purchase and sell order are met, the smart contract automatically conducts trades.
- The Ethereum blockchain is used to settle transactions: The tokens are automatically transferred between the Ethereum blockchain wallets of the two parties after a deal is completed. Both sides receive their tokens immediately after the trade is completed.
- IDEX levies commissions for trading: IDEX levies commissions for trading on its platform, which are settled in tokens based on Ethereum. These charges pay for platform development and upkeep as well as rewards for IDXM token owners who take part in the IDEX staking programme.
- Due to the fact that IDEX is a decentralized exchange, users always have full control over their assets. Their private keys are not kept by a third party, and they do not need to deposit their tokens on the exchange itself. As their assets are not stored by a centralized exchange, users have more control and security over them.
Can IDEX be trusted
IDEX has established a reputation as one of the most reliable and secure decentralized exchanges in the cryptocurrency space. There are several reasons why IDEX can be trusted:
- Decentralisation: Since IDEX is a decentralised exchange that uses the Ethereum blockchain to run its operations, it does not keep the assets of its users. This gives users more autonomy and security over their money while removing the possibility of a centralised exchange being compromised or going out of business.
- Security precautions: To safeguard the assets of its users, IDEX has put in place a number of security precautions, such as two-factor authentication (2FA), SSL encryption, and cold storage for the private keys of its hot wallets.
- Transparency: IDEX is open and honest about how it runs its business, giving users real-time details on its trade volume, commissions, and other stats. To maintain the integrity of its smart contracts, the exchange also regularly publishes audits of them.
- Reputation: IDEX is well-known as one of the top decentralised exchanges and enjoys a good standing in the bitcoin community. The exchange has a history of dependability and security and has been in operation since 2017.
Having said that, it’s critical to understand that there is some risk involved in utilising any cryptocurrency exchange. Users must always take the necessary precautions to safeguard their assets, including turning on 2FA, utilising a secure wallet, and only dealing with trustworthy exchanges.
Does IDEX charge a fee
Yes, IDEX charges a fee for trading on its platform. The fee is calculated as a percentage of the total value of the trade and is paid in Ethereum-based tokens. The fee varies depending on the user’s trading volume and whether they hold IDXM, the native token of the IDEX platform.
The fee structure for IDEX is as follows:
- Taker fee: 0.2% of the total value of the trade.
- Maker fee: 0.1% of the total value of the trade.
In addition, users who hold IDXM tokens can receive a discount on trading fees based on their IDXM balance. The discount starts at 25% for users with a balance of 2,500 IDXM and increases up to a maximum of 100% for users with a balance of 250,000 IDXM.
It’s worth noting that fees on IDEX can be higher than on centralized exchanges due to the nature of decentralized exchanges, which require more complex infrastructure and higher gas fees for executing trades on the Ethereum blockchain. However, many users are willing to pay a premium for the added security and control that comes with using a decentralized exchange like IDEX.