IDEX exchange is a new competitor in the market and is one of the top decentralized exchanges particularly in terms of volume. IDEX uses the Ethereum network and allows trading of ERC-20 tokens.
Similar to EtherDelta, it employs smart contracts and offers a secure way for users to manage private keys and to trade in a peer-to-peer environment. IDEX exchange can be used with wallets like MetaMask and Ledger Nano S for extra security.
The IDEX exchange is part of the Aurora group, which has a collection of Ethereum applications and protocols that combine to form a decentralized banking and finance platform.
What are the IDEX features?
- Functionality – With a user-friendly interface, the IDEX platform amalgamates features like TradingView Charts and encrypted Wallets. IDEX offers a prompt and rich trading experience. Additionally, it uses an off-chain trading engine that operates with an Ethereum Smart contract. The off-chain structure is designed to manage the user trading experience and the smart contract checks and controls the funds, trade authorization, and final settlement.
- Security – The smart contract, a trading engine, and a transaction processing arbiter allow users to store all the assets on the platform and every executed trade settlement is authorized by the user’s private keys. IDEX also implements private key encryption and helps users to trade through MetaMask and Ledger Nano S wallets.
- Trading Options – The exchange offers a wide range of trading options. The user can start trading as soon as he or she has funds on the exchange. IDEX platform lets a user create market or limit orders, and gas-free cancels.
- Technology – One of the greatest benefits of using an IDEX decentralized exchange is the integration of a hardware wallet. Using this combination for trading will prevent users from risks like malware and phishing attacks. On the other hand, when a user signs off a transaction, the exchange broadcast transactions to the Ethereum network and updates account balances and order books in real time.
- Customer Support – To handle any issues of users, the support team is always available. Users can use the Contact Form, Twitter accounts, or Telegram group to contact the team. The website provides an FAQ page that contains answers to most common questions and guidelines on how to easily navigate the IDEX platform.
How to Create an Account on IDEX?
As soon as the user visits the site, a pop-up message appears with an option to “Explore” the site or to “Unlock Wallet”. The tabs “New Wallet” and “Unlock Wallet” are available at the top right of the main page.
Unlock a Wallet
A user can integrate an existing wallet that is already in their possession to deposit funds into the exchange’s smart contract. IDEX exchange offers four options for users while unlocking a wallet on the exchange:
- Keystore File: the user can upload the private key via a Keystore file that is already possessed by the user
- Private Key: the user can enter the private key to access an Ethereum address created.
- Metamask: the user can log into the MetaMask wallet and integrate it with the exchange.
- Ledger Wallet: the user can use Ledger Nano S wallet on the exchange to make direct transfers.
Create a New Wallet
To create a new wallet on the exchange, a user can enter a password and IDEX will generate a private key and produce a downloadable JSON File. The user can download and save it.
What are the Supported Currencies?
IDEX— being an Ethereum-based exchange, deals exclusively with Ethereum and ERC20 tokens. Tokens include:
- OmiseGO (OMG)
- Basic Attention Token (BAT)
- Augur (REP)
- Maker Token (MKR)
- Tomochain (TOMO)
IDEX Exchange includes the AURA token— a native currency that prompts users to stake the coin. The staking of AURA helps users to have a share of fees and rewards node operators accordingly. Around 50% of fees have been reserved to pay for the stakers of AURA.
- IDEX charges a maker 0.1% fee for creating a new order for the order book and making liquidity.
- 0.2% for takers who fill an order on the book and takes liquidity.
- Takers are also responsible for paying the gas fee for a transaction. The detailed process is shown here.
The prices of Ethereum are increasing and each trade costs around 140k gas and the cost of gas is 1.5 times higher than on EtherDelta. These high gas prices have led the exchange to introduce order minimums in an attempt to lower costs of users. IDEX allow users to cancel trades without paying gas. All the canceled trades are executed by the exchange. In addition, there are minimum order and withdrawal limits. Minimum order limits of $20 for makers and $10 for takers and the minimum withdrawal limit is $1.
Is IDEX Safe?
Some of the features that are listed below would suggest that IDEX is a safe exchange:
- There are many protocols designed and adhered to by IDEX to enhance security on the platform
- Private keys accessed directly on the exchange are encrypted and stored in the browser memory and this prevents access from outside of the IDEX app
- Smart contracts keep funds securely and safely locked until the user uses a private key to sign off a transaction for transferring them
- Funds are always under the control of a user
- There is no permission to IDEX to process any transactions until the user signs a permission
- An “escape hatch” allow users to withdraw directly from the smart contract after they reach a set period of inactivity
- Incorporating of MetaMask and Ledger hardware wallets adds an additional level of security as both wallets allow users to trade without having to disclose their private keys
- This cryptocurrency website is highly protected as it never allows users to enter their private keys manually thus reducing the risk of hijacking the URL or getting compromised.
Pros and Cons
- Decentralized Exchange
- Heaps of Ethereum Tokens
- Concrete and highly responsive Platform
- Secure use of Smart Contracts
- Quick access to new currencies
- Reliant on the Ethereum Network
- Only trades ERC-20 Tokens
- Low Liquidity
- No Fiat Trading
IDEX Exchange was launched in January 2018 and has quickly grasped growth in terms of both user numbers and trading volume. Despite having many other decentralized exchanges in the crypto market that server Ethereum network, IDEX has attracted the significant number of EtherDelta users and is well-positioned among competitors.
Overall, IDEX is a good option for anyone who is looking to purchase ERC-20 tokens, which may be hard to find on other exchanges.
Featured Image: twitter