The decentralized finance (DeFi) space continues to evolve rapidly, and one platform that has gained significant traction is 1Inch. Designed to streamline cryptocurrency trading across multiple decentralized exchanges (DEXs), 1Inch has become a go-to solution for users seeking better rates, improved liquidity, and seamless cross-chain swaps. This guide breaks down what 1Inch is, how it works, and provides a step-by-step walkthrough for using it with popular wallets like Coin98.
What Is 1Inch?
1Inch is a decentralized exchange (DEX) aggregator built primarily on the Ethereum blockchain. Its core function is to scan multiple DEXs—such as Uniswap, SushiSwap, and Curve—to find the most favorable trading routes for users. By splitting large orders across various platforms, 1Inch minimizes slippage and maximizes returns, offering traders optimal execution.
While initially launched on Ethereum, 1Inch now supports multiple blockchain networks, including:
- Binance Smart Chain (BSC)
- Polygon
- Optimism
- Arbitrum
This multi-chain support allows users to trade efficiently across ecosystems, reducing dependency on a single network and lowering transaction costs during peak congestion periods.
Beyond aggregation, 1Inch has expanded into other DeFi services, such as:
- Lending & Borrowing Aggregator
- Leverage Trading Aggregator
- Limit Order Functionality
These features position 1Inch not just as a swap tool, but as a comprehensive DeFi hub.
Advantages and Limitations of 1Inch
✅ Advantages
- Best Price Execution: Aggregates liquidity from multiple DEXs to offer the best possible exchange rate.
- Multi-Chain Support: Operates across several major blockchains, enhancing accessibility and flexibility.
- Low Slippage: Smart routing algorithms reduce price impact on large trades.
- No Registration Required: Fully non-custodial—users retain control of their funds at all times.
- Native Token (1INCH): Offers governance rights and staking opportunities.
❌ Limitations
- Gas Fees Depend on Network: High Ethereum gas fees during congestion can make small trades uneconomical.
- Learning Curve: Beginners may find the interface complex without prior DeFi experience.
- Smart Contract Risk: As with all DeFi protocols, there’s inherent risk tied to code vulnerabilities.
How to Prepare for Trading on 1Inch
Before you start swapping or providing liquidity on 1Inch, ensure you have the following:
Wallet Compatibility
1Inch integrates with various Web3 wallets. The most commonly used include:
- MetaMask
- Trust Wallet
- Coin98 Wallet (mobile and browser extension)
This guide focuses on using Coin98 Wallet, known for its user-friendly interface and multi-chain capabilities.
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Setting Up Coin98 Wallet
For Mobile:
Download the Coin98 Mobile Wallet from the official website: coin98.com/wallet
For Desktop:
Install the Coin98 Extension Wallet for Chrome via the Chrome Web Store.
Once installed, create a new wallet and securely back up your recovery phrase. Since 1Inch supports Ethereum, Binance Smart Chain, and Polygon, consider setting up a multi-chain wallet to manage assets across networks seamlessly.
Note: Always verify URLs and avoid phishing sites. Never share your private keys or recovery phrase.
Preparing Gas Fees
To execute transactions on 1Inch, you’ll need native tokens for gas fees depending on the chain:
- Ethereum Network: ETH
- Binance Smart Chain: BNB
- Polygon: MATIC
You can purchase these tokens on centralized exchanges like Binance or directly within Coin98 Wallet, then transfer them to cover transaction costs.
Step-by-Step Guide: Using 1Inch with Coin98 Mobile Wallet
Connecting Your Wallet
- Open the Coin98 Mobile Wallet app.
- Tap the Browser feature and search for
app.1inch.io. - On the 1Inch website, tap Connect Wallet.
- Select Web3 Wallet and confirm connection via Coin98.
Tip: Look for the MetaMask icon—even when using Coin98—to initiate the Web3 connection.
Swapping Tokens
- Choose the token you want to trade and enter the amount.
- Select the desired output token.
- Review the estimated rate and associated fees.
- Tap Swap, then confirm the transaction in your wallet.
The trade will be routed through the most efficient DEXs automatically.
Providing Liquidity
- From the main menu, tap the three-line icon (☰) in the top-right corner.
- Go to DAO > Pools.
- Select a liquidity pool (e.g., 1INCH-BNB).
- Enter the amount you wish to contribute.
- Click Provide, then approve token usage by selecting “Give permission to use [token].”
- Confirm the transaction.
Upon contribution, you’ll receive LP (Liquidity Provider) tokens representing your share in the pool.
Yield Farming with LP Tokens
After providing liquidity, you can stake your LP tokens to earn additional rewards:
- Navigate to DAO > Farming.
- Find the farm corresponding to your liquidity pool (e.g., 1INCH-OPIUM).
- Tap Deposit and send your LP tokens to the farming contract.
- Confirm in Coin98 Wallet.
You can withdraw your stake at any time, giving you full control over your assets.
Using 1Inch with Coin98 Extension Wallet (Desktop)
Connection Steps
- Visit app.1inch.io.
- Click Connect Wallet.
- Choose Web3 Wallet.
- Select Coin98 Extension Wallet from the popup.
- Enter your password and click Connect.
Once connected, proceed with swaps or liquidity provision as described above.
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Frequently Asked Questions (FAQs)
Is 1Inch Safe and Trustworthy?
Yes, 1Inch is considered a reputable project in the DeFi ecosystem. It raised $2.8 million in funding from notable investors including Binance Labs, Dragonfly Capital, Galaxy Digital, and formerly FTX. The protocol has undergone multiple smart contract audits and maintains a strong security track record.
Does 1Inch Have Its Own Token?
Yes, 1Inch launched its native utility and governance token, **$1INCH**, in late 2020. A portion was distributed to early users and liquidity providers as an airdrop. Today, $1INCH is listed on major exchanges such as Binance, Huobi, and OKX, enabling broad access for traders and investors.
What Are the Transaction Fees on 1Inch?
As a DEX aggregator, 1Inch itself does not charge trading fees beyond a small protocol fee (typically 0.3% or less on certain actions). However, users pay standard network gas fees based on the blockchain they're using (e.g., ETH for Ethereum). There are no additional withdrawal fees imposed by 1Inch.
Is Trading on 1Inch Difficult for Beginners?
While the interface is intuitive, navigating DeFi platforms requires basic knowledge of wallet management, gas fees, and token standards. New users should start with small transactions and familiarize themselves with concepts like slippage tolerance and contract permissions.
Can I Use 1Inch Without KYC?
Absolutely. 1Inch is fully decentralized and non-custodial—no registration, email, or identity verification is required. You interact directly from your wallet.
How Do I Avoid Scams When Using DEXs?
Always double-check token addresses before confirming transactions. Fake tokens often appear in search results with slight name variations. Use trusted sources or copy addresses from official project websites only.
Final Thoughts
1Inch stands out as a powerful tool in the DeFi landscape, combining smart routing, multi-chain support, and yield-generating opportunities in one platform. Whether you're swapping tokens for better rates or participating in liquidity pools and farming rewards, 1Inch empowers users with greater control and efficiency.
As DeFi adoption grows, platforms like 1Inch play a crucial role in democratizing financial services—offering transparency, accessibility, and innovation without intermediaries.
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