HOW TO BUY 1INCH CRYPTO
If you are part of Telegram Channels that discuss Crypto topics, you have probably heard of 1inch, a distributed network for decentralized protocols on Ethereum and Binance Smart Chain, enabling operations in decentralized finance. There are several ways to acquire the governing coin (1inch) to start swapping tokens at their exchange. This article will briefly describe how to do it and what investment options you have when doing it via Binance. Note: This article doesn't constitute financial advice; you should take it as an informative text.
What is 1inch?
1inch is a network for decentralized protocols that operate on Ethereum and Binance Smart Chain, enabling operations in decentralized finance (DeFi). The 1inch network consists of 5 components:
The 1inch Aggregation Protocol facilitates cost-efficient and secure atomic transactions by utilizing a wide range of protocols and performing argument validation and execution verification.
The 1inch Liquidity Protocol is a next-generation automated market maker that protects users from front-running attacks and offers capital efficiency to liquidity providers.
The 1inch network (governed by the 1inch DAO) is a decentralized autonomous organization that enables 1INCH stakers to vote for key protocol parameters and participate in the network's governance.
A key contributor to the 1inch network is 1inch Labs, a decentralized group of software builders that develop a range of open-source protocols governed by users through the 1inch DAO.
The 1inch Foundation is a non-profit organization that issued the 1INCH token, and its primary goal is to foster the 1inch network and benefits the network's community.
What is a Decentralized Exchange (DEX)?
In case you are not aware of what a DEX is, let's clarify it here. Unlike CEXes (Centralized Exchanges), no central authority or third party is involved in a DEX operation. As a result, a user retains complete control of their funds stored or traded on DEXes, which offers a higher security degree than CEXes. While CEXes are believed to be faster and offer generally better user experience than DEXes, the latter has recently shown significant improvements in those areas.
Binance: The Top Crypto Exchange to Buy 1inch
Binance operates the world's leading cryptocurrency exchange in daily volume and transactions (1.4 million per second).
Beyond being the largest cryptocurrency exchange by volume, Binance offers multiple products and services; its core objective is to build a broad ecosystem in the blockchain sector. In this regard, this ecosystem consists of numerous variants. Of course, the cryptocurrency exchange stands out among them and the wallet services for its users, crypto laboratories (to launch new tokens), charity, information, and education, among many others.
Besides the fact that Binance, through its Binance Smart Chain, allows you to connect to the 1inch network to swap tokens, it also provides you with other staking-and-earn-interest options. Let's mention them.
What Can I do with 1inch tokens on Binance?
If you decide that swapping your tokens at 1inch via Binance Smart Chain is not your thing, you have a few options.
Besides the apparent Staking way of investing in Crypto, buying a token and holding it in the hope that its price will increase, Binance offers you two possibilities to make use of the tokens:
Flexible Savings: Flexible Savings is your Crypto savings account. As your bank pays you a small interest for your cash in your account, Binance pays you a small interest for your 1inch tokens parked on this account. As its name states, with the Flexible Savings feature, you may redeem your funds at any time.
Locked Savings: If you are committed to holding your Crypto for at least 15 days, you can earn a higher interest. If you subscribe your 1inch tokens to locked savings periods, you make higher interest earnings than the Flexible Savings feature. You have to be aware that you can't redeem your tokens on the Locked Savings feature, so if the price decreases rapidly, you won't be able to exchange your tokens.
Warning: EU's Supervisory Authorities opinion on Crypto Assets
As crypto-assets continue to attract public attention, the European Supervisory Authorities (EBA, EIOPA and ESMA – the 'ESAs') remind consumers that some crypto-assets are highly risky and speculative. As stated in the ESAs' February 2018 joint warning, consumers must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money.
Additionally, crypto assets come in many forms, but most remain unregulated in the EU. This means that consumers buying and/or holding these instruments do not benefit from the guarantees and safeguards associated with regulated financial services.
To conclude, Crypto Assets are complex instruments and come with a high risk of losing money rapidly. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.