What Is 1inch? Should You Invest In 1INCH And Where To Buy It?

Last Updated March 29th 2022
17 Min Read

The number of people investing in cryptocurrencies is increasing by the day. People are beginning to understand that investing in the crypto world can be really profitable, though risky. People also appreciate the cryptocurrency market because it is easy to make a lot of money while remaining anonymous. The opportunities are huge and relatively untapped. 

Though it is generally a fun space, the cryptocurrency universe is not as simple as outsiders see it. Developers understand this and have been working harder recently to develop protocols and platforms that make participating in the industry easier for everyone. 1inch is one of the platforms helping to make the market easy for traders, investors, and other industry actors who need accurate data to make important decisions. 

The primary role of 1inch is finding the best cryptocurrency prices on the market. Obviously, it is important to a lot of people in the industry. But does that mean you should invest in 1inch? 

We often recommend that potential investors find answers to some critical questions before they start buying any token. In this case, these critical questions include: what is 1inch? Should you invest in 1inch? And where can you buy 1inch? 

We will answer the questions above systematically to help you get the most important information you need to determine whether investing in 1inch is the right thing for you. We may not offer investment advice, but we will discuss everything you need to know about 1inch to guide your decisions properly. 


What is 1inch? 

1inch is primarily a decentralized exchange (DEX) aggregator, which means that the protocol scours the cryptocurrency market, comparing prices of different tokens across several exchanges. The 1inch Liquidity Protocol is recognized as a next-generator automated market maker (AMM) that can protect users from making mistakes due to a lack of accurate information. It uses three different protocols to ensure that users get the best. 

1inch is one of the most innovative platforms in the decentralized finance space. Due to the nature of the industry, finding the best deals used to be very difficult. 1inch searched deals across different liquidity sources and offers individual users the best rates and fees. Its aggregation protocol utilizes the Pathfinder algorithm to search and compare more than 60 liquidity sources on Ethereum, more than 30 on Binance Smart Chain, as well as more than 30 liquidity sources on Polygon, Optimistic Ethereum, and Arbitrum. 

It is important to state here that 1inch is not just an aggregator. It runs an ecosystem of its own that includes the aggregator protocols and other aspects that make up a cryptocurrency platform. It is built on the Ethereum network and has an ERC-20 token that powers its ecosystem. This token is the primary subject of this blog post as we are going to discuss its viability as an investment vehicle. The ecosystem also supports a Chi Gas (used to power transactions) and a wallet. 

Like other Ethereum-based tokens, 1inch can be traded like any other digital asset. It has been around for just about a year but is becoming a lot more popular in recent times. It is also the governance token of the network, meaning it grants holders the right to put up proposals for a community vote. It is traded as 1INCH and is currently available on many platforms. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

A Brief History Of 1inch 

1inch was founded by Sergej Kunz and Anton Bukov. The two reportedly met for the first time during a live stream of CryptoManiac, which is Kunz YouTube Channel. They started entering hackathons together and came up successful in one event in Singapore. They started working on a joint project to focus on arbitrage opportunities in the market during the ETHGlobal New York hackathon in May 2019. 

Kunz and Bukov succeeded at building a protocol that could aggregate prices from a handful of decentralized exchanges (Uniswap, Bancor, and Kyber) and they named it 1inch Aggregation Protocol. They continued working on the project and were able to build Mooniswap (which is the first version of the current 1inch liquidity protocol) in August 2020. In a matter of a few months, the team was able to launch several other aspects of what we now call the 1inch ecosystem, including 1inch V2, the 1inch token, and their own decentralized autonomous organization (DAO). 

The second version of the 1inch liquidity protocol introduced many important features, including the Pathfinder routing system and a new and better interface. It also supported many more liquidity sources. At the moment, 1inch aggregates prices and fees from more than 100 liquidity sources primarily across three blockchains, including Ethereum, Binance Smart Chain, and Polygon. 

What Makes 1inch Unique? 

1inch is special because it solves one of the biggest problems in the DeFi sector, which is the problem of liquidity. Yes, there are several liquidity sources that traders and investors can use, but the major problem is that prices differ significantly across these sources. 

By scouring more than 100 liquidity sources and comparing rates and fees, 1inch helps industry players determine the best place to buy and sell at any given time. It is the best friend to players who are heavily invested in arbitrage trading. 1inch is also regarded as the most audited project in decentralized finance (DeFi). 

Read Also: What Might Happen If You Invest $100 In 1Inch (1INCH) Today?

More About The 1inch Token 

As you should know already, 1INCH is the token that powers the entire 1inch ecosystem. It is an ERC-20 token on Ethereum and is also available on the Binance Smart Chain through a cross-chain bridge. It serves both as the utility and governance token of the 1inch network. 

The 1inch token, just like most cryptocurrencies, trades on different cryptocurrency platforms. It trades under the ticker symbol, ‘1INCH.’ It also serves as a connector between tokens that are characteristically difficult to swap directly. 

There is not much information about the initial coin offering for 1inch. What we know is that it was set for December 2019. It wasn't really an ICO but community airdrops. No information is given about the price of the token at that ICO or how much the company raised to execute the project. 

At the time of writing this piece, 1INCH was selling for $1.6 per token, with a 24-hour trading volume of $68,217,111. Within the previous 24-hours, it had recorded a low price of $1.59 and reached a high point of $1.74. The market capitalization is $750,655,973, making it the #92 cryptocurrency in the world. There are currently 468,162,403.57 1INCH in circulation and the total supply is 1,500,000,000 1INCH. 

Should You Invest In 1inch? 

1inch is unarguably an important part of decentralized finance. It is helping millions of online traders discover the best trade prices for all kinds of tokens. The best part of the deal is that it compares data from hundreds of liquidity sources to offer users the very best deals. But does that automatically make the token a good investment vehicle? Not really. 

If you are planning to invest in 1INCH, then you have to have a strong belief that the price of the utility token is going to improve with time and that your investment will fetch you significant profit. Truly, the nature of the 1inch network will influence the price of its token, but there are other market factors you need to consider. We will discuss some of the most important things that should influence your decision right here. 

Check Out: Will 1inch Make Me Rich In 10 Years?

Is 1inch A Safe Investment? 

One of the most important things to consider before investing in any digital asset is the safety of your investment. In cryptocurrency, you need to consider how secure the network you intend to buy its token is. The 1inch network is generally believed to be secured as it is non-custodial. 

The 1inch protocol is designed in a way that prevents losses. Even though insecure liquidity sources can connect to the 1inch Aggregation Protocol, users’ funds are never at risk because security checks are performed during every transaction. 

To ascertain the safety of the network, leading audit teams in the cryptocurrency space, including OpenZeppelin, SlowMist, CoinFabrik, Certik, Consensys diligence, MixBytes, Chainsulting, and Haechi Labs, audited 1inch smart contracts. The network was found to be highly secure. 

Major Reasons To Invest In 1inch 

From what we have discussed so far, you can tell that there are several good things about 1inch. It has become one of the most important cryptocurrency platforms on the DeFi space, especially for regular traders. You still need to be sure that investing in the 1INCH can yield the financial benefits you need. 

Here are some concrete reasons you may want to invest in the hot token: 

1. It helps traders find the lowest rates on the market 

It doesn’t matter what digital currency you are trying to swap in the DeFi sector, 1inch will help you find the very best rates. The protocol is very articulate when it comes to finding the best deals for any currency pair. In some instances, the protocol can split a swap across different exchanges if that will bring a better deal. 

2. There are no fees for getting the best deals from 1inch 

One of the reasons users love 1inch is because it doesn't charge any fees. Don't get it wrong, users have to pay the fees for the exchanges where transactions happen, as well as the accompanying transaction costs (gas fees). 1inch doesn’t keep your asset on its platform and doesn’t charge additional fees for getting you the best deals. This is another reason people will keep adopting 1inch. 

3. 1inch solve one of the most important problems facing DeFi traders/investors 

Decentralized finance has several benefits, but the fact that prices for the same assets are different across platforms is a problem for users. Only arbitrage traders take advantage of this, and they are also troubled by price disparity. The 1inch network solves the problem for everyone, which is why we believe it will attract more users and grow bigger in the coming years. 

4. As part of the fast-growing DeFi, 1inch is set to explode with the industry 

The future is decentralized, and DeFi will replace the world financial systems as we know them. It is already happening, and platforms like 1inch will benefit from the revolution. The best part of the deal is that 1inch already solves a critical problem in the sector. It will definitely explode further in the coming future and reward early investors massively. 

5. 1inch offers a multi-token wallet 

1inch is very easy to use because of the way it is built. It has a multi-token wallet that makes transactions easy. Depending on the browser you use, the network accepts a wide range of wallets. 

6. 1inch can help you manage future cryptocurrency investments better 

Experienced cryptocurrency investors understand the importance of keeping a diversified portfolio. New coins will still become relevant in the future, and 1inch will help you trade anyone you choose to trade with less risk. Investing in the coin now should be a no-brainer, especially if you are aiming to be active in the decentralized future. 

7. 1inch is still relatively cheap 

1inch is currently selling for around $1.5. This may seem too much for a token that was released to the market barely one year ago. Considering the potentials of 1inch, the price is too cheap. It is better to buy now because 1inch may explode soon and the price will be too much that making a significant investment will become harder. 

8. The liquidity pool helps you earn more without selling your assets 

With 1inch, you can put your digital assets to work and earn passive income. You can put your 1inch investment in something called ‘liquidity pool,’ which basically ensures that there is always enough coins available for users who want to trade. The liquidity pool rewards everyone who contributes to keeping it up. You can grow your crypto holdings this way without having to sell when you don't want to. 

9. You can access a wide range of cryptocurrencies on 1inch 

1inch is an ERC-20 token on Ethereum and it also supports every other currency on the Ethereum blockchain. While using 1inch, if you don’t find the ER-20 you want, all you need to do is get all the details and add it. Currently, there are more than 400 tokens available on 1inch, and users are loving the wide variety of investment options they get. 

10. 1inch has performed well in such a short time 

Regardless of how wonderful a crypto network is, the poor performance of its token should warn you that it may not have a good future. In the case of 1inch, the token has performed really well in a matter of months. Price prediction sites are optimistic about the future of 1INCH

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Reasons To Think Twice About Investing In 1inch 

Obviously, there is so much going for 1inch that it can appear as one of the best investment options for you. You should know, however, that there is always another side to a success story. There are a few reasons you may want to avoid investing in the coin, including the following: 

1. 1inch is a new cryptocurrency with no history to study 

One of the best ways to study a cryptocurrency and get it right with timing is to look at its price history. Unfortunately, 1INCH has been around for a short time, and there is not enough historical data to determine how it reacts to market factors. 

2. 1inch is volatile 

No matter how you look at it, 1inch is a volatile asset, and this can be a problem for some investors/traders. However, this is a general problem in the cryptocurrency market and your experience can guide you through the risks it presents. In any case, the volatile nature of 1inch makes it particularly risky, especially for inexperienced traders. 

3. 1inch and other DeFi platforms may face strict regulations in the future 

While we hope that DeFi will achieve its potentials, it doesn’t cost us anything to admit that the future looks pretty dicey for all assets in this promising subsector. Decentralized Finance may face excessive regulation in many countries, and this can affect the value of 1inch and other tokens in the category. This is not a big threat, however, as the cryptocurrency scene has already survived several negative projections. 

Where Can You Buy 1inch? 

The blockchain industry has grown so big that digital currencies are far easier to obtain than fiat currencies. It is very easy to buy any cryptocurrency of your choice, and 1inch is not an exception. 

While there are many places you can buy 1inch, they are all generally classified under three groups. The commonest sources of cryptos are exchanges. Most cryptocurrencies are listed on the top crypto exchanges, and many buyers choose exchanges because of the variety they get. Some exchanges also offer competitive rates and fees. 

You can also get cryptocurrencies from a select group of brokerages. Many of the world’s most progressive brokerage companies have come to realize that cryptocurrencies wield a lot of power and may decide the future of investments. Many of these brokerages now allow the trading of cryptos. Some actually offer several bonuses for users who are interested in trading cryptos because of the potentials the industry holds. 

Besides cryptocurrency exchanges and brokerages, there are apps you can buy cryptocurrencies from. Some are marketed as trading platforms while others are marketed as investment platforms. They serve similar purposes when it comes to buying and selling digital assets. 

Best Platform To Buy 1inch 

Between the three options, we briefly discussed in the paragraphs above, which is the best for buying 1INCH? 

Though brokerages are the commonest choices for most people, they are not really the best for everyone. Cryptocurrency exchanges normally do not offer many benefits to investors, and they are not as safe as many believe they are. Many cryptocurrency exchanges have been hacked in the past, and some may still be hacked in the future. Leaving your digital assets in exchanges is too risky. 

The regular apps that are neither official exchanges nor brokerages are even worse than exchanges. While some are genuine investment platforms, some are nothing better than scam companies. Most times, it is really difficult to distinguish genuine platforms from fake ones, which is why some investors avoid such platforms completely. 

From what we’ve covered so far, it is easy to tell that we favour brokerages when it comes to investing in cryptocurrencies. Most brokerages offer a wide array of assets you can invest in from the comfort of your home, including stocks, commodities, indices, ETFs, currencies, and, of course, cryptocurrencies. 

There are many brokerages out there, and, of course, they are not all made equal. There are different ways to judge them, but you want to make sure the brokerage you choose supports their customers/users properly. eToro happens to be one of the best brokerages for trading cryptocurrencies, and you can buy 1inch from it. eToro offers users many perks and it is ideal for traders of all experience levels. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Next After Buying 1inch?  

Investing in 1inch means buying when the token when you can afford to buy and selling when the market favours your investment. Depending on your investment strategy, you can sell after a few hours or days. You can also wait for months or years before selling your assets, but what becomes of them after you buy? You need to keep them safe, and that is where a digital wallet comes in. 

There are several digital wallets out there, and 1inch also has its multi-token wallet. Even eToro offers customers an easy-to-use and reliable digital wallet. You need to choose a digital wallet that works for your cryptocurrency portfolio. 

Final Words 

1inch has the potential to become one of the most popular DeFi protocols. It is currently being used by so many traders to find the best deals in the market. We have discussed some of the most important things you need to know about the platform. From what we have covered, you can tell that investing in 1inch can be profitable. The decision has to be yours. 

eToro – Best Platform To Buy 1Inch

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Key Points To Keep In Mind 

We have covered most things you need to understand before investing in 1INCH. The information above can be a lot for most people, so here are the key points to keep in mind when making your investment decision: 

  • 1inch is primarily a decentralized exchange (DEX) aggregator that helps users find the best deals in decentralized finance. 
  • 1inch is one of the most important protocols in DeFi because it facilitates the most innovative limit order swap opportunities in the industry. 
  • 1INCH is the ERC-20 token that powers the 1inch network and also the investment vehicle you can trade across different crypto platforms for profit. 
  • 1INCH is both a utility and governance token that can be used to vote on important proposals under the decentralized autonomous organization (DAO) model. 
  • 1inch raised lots of money through a couple of funding rounds that has several well-known investors in the industry. 
  • The technical structure of 1inch makes it a very secure platform. It was audited by a team of top auditors and found to be really safe. 
  • 1inch is a complete ecosystem, though it is built on the Ethereum blockchain. 
  • 1inch is attractive for many reasons – it finds the best rates, charges no additional fees, and works with various wallets and several other cryptocurrencies. 
  • You can put your 1INCH holding to work by contributing to a ‘liquidity pool’ and earning rewards. 
  • 1inch is a relatively new digital asset, though it has performed well. 
  • 1INCH is a volatile asset and is considered too risky for inexperienced traders. 
  • 1inch is not regulated and the entire DeFi sector may face detrimental regulations in the future. 

Read More:

Top 7 Best DeFi Cryptocurrencies To Invest In

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