IDEX Exchange Reviews: Is it a safe Crypto Exchange?
IDEX is a popular decentralized Ethereum-based exchange that focuses primarily on ER20 token and Ethereum trading pairs. Like other decentralized Ethereum platforms, IDEX uses smart contracts that give users the ability to trade in a safe and secure environment. Unlike other IDEX exchange reviews, this one will tell you everything you need to know.
- Operating Since 2016
- Currencies Supported 100+
- Fees aker: 0.10%/ Taker: 0.20%
- Deposit methods Private key, Keystore file, MetaMask, or Ledger
- Fiat currencies No
- Verification methods ID/KYC
- Margin trading Yes
- Futures trading No
We’ll talk more about smart contracts and how they work in a moment, but for now, just know that IDEX offers plenty of features for anyone interested in using an Ethereum-based decentralized exchange.
Founded in 2017, IDEX is a decentralized platform located in Panama that offers the security of blockchain technology with the speed of centralization. The exchange provides real-time crypto trading, along with the ability to complete multiple trades simultaneously.
Since its creation, the platform has provided users with off-chain matching paired with on-chain settlement. However, the platform realized that there were ways the exchange could be improved. That’s why an upgrade occurred in 2019, touted by the site as IDEX 2.0.
With its 2.0 iteration, users have access to the same core available with version 1.0 but with additional improvements. These enhancements include the implementation of scalable applications, unlimited off-chain settlements, bottleneck removal, and much more.
What makes IDEX a decentralized exchange?
Technically, IDEX is a hybrid exchange.
This is because deposits and executions are processed in a central manner. However, storage and settlement are decentralized. As a result, the platform is fast enough that users don’t encounter a lot of bottlenecks but still enjoy the security enjoyed through fully decentralized exchanges.
What are smart contracts, and how do they work?
IDEX is a decentralized exchange based on the Ethereum.Visit Exchange
One of the features that make this exchange so appealing is its use of smart contracts.
But what are these unique contracts that exist on the blockchain? Smart contracts self-execute when the conditions set by a buyer and seller are met.
These terms are directly written into the code and distributed across a decentralized network. It’s the code that controls all parts of the contract, including its execution. All aspects of the transaction are entirely trackable on the blockchain and cannot be reversed.
What’s the appeal of these contracts?
For starters, they allow for a trusted transaction to be performed among anonymous parties. No central system or authority is required. That means agreements don’t need external or third-party mechanisms to enforce the parameters of the contract.
What cryptocurrencies does IDEX support?
As I mentioned, the platform deals only with ETH and ERC-20 tokens and digital assets. That means you’re not going to have the ability to buy, sell, or trade any coins that fall outside the world of ETH. However, you’re still left with a wide variety of choices, which you can find here.
Additionally, IDEX often gives its users access to up-and-coming tokens and ICOs before being released on centralized exchanges. This means you can get in on an exciting project before everyone else does simply by using this unique exchange.
Why doesn't IDEX support Bitcoin?
Since the platform is an Ethereum-based decentralized exchange, it does not offer support for coins like Bitcoin. While some traders prefer not to use a platform that doesn’t feature BTC, others relish the opportunity to focus primarily on ETH and the coins built on the Ethereum blockchain.
IDEX offers a simple, two-tier verification system for its users.
With Tier 1, users need an email address to create an account. Then your name, date of birth, and country of residence are requested to confirm your identity. Once you submit verification, you’re qualified for unlimited trades and a daily withdrawal limit of USD 5,000.
If you need to withdraw more than USD 5,000 a day, you’ll have to provide another form of ID, along with your address and a picture of yourself. Once approval is granted, the exchange allows you to perform unlimited withdrawals and trades on its platform.
What wallets does IDEX support?
Like other exchanges, anyone can trade on the IDEX platform. However, there is one small catch.
You must have either a Ledger Nano S or MetaMask wallet to access the cryptocurrency exchange.
If you don’t have either of these wallets, you can use the IDEX online wallet. Most users prefer to use MetaMask because it’s free and can store coins offline.
Metamask vs. Ledger Wallet
The thing that draws users to Metamask is that in addition to supporting Ether and ERC-20 assets, the wallet gives users the ability to interact with Ethereum decentralized apps.
Users can do everything they need to do in their favorite browser, with web extensions for Firefox and Chrome. Once the extension is installed, you’ll have an easily accessible wallet to hold all your ERC-20 coins.
On the other hand, the Ledger Wallet is a hardware wallet that stores all the private keys to your favorite cryptocurrencies in a physical, secure device. Through the Ledger Nano S, you can check your account balances, manage your digital assets, and transfer coins quickly and easily.
Your digital coins are stored offline, which means your coins can’t be hacked. If you prefer a simple and easy way to manage your crypto, an offline wallet like the Ledger Nano S is a great option.
There are four ways to deposit crypto into your IDEX account: MetaMask, Ledger, Private key, or Keystore file. We’ve already covered MetaMask and Ledger, so let’s take a closer look at the private key and Keystore file methods.
The private key and Keystore files are used to connect to an already existing Ethereum wallet. This is a little more complex if you’re not familiar with using a cryptocurrency wallet, so if that’s the case, you may want to sick to MetaMask.
No fiat support
Since IDEX focuses on tokens and coins that exist on the Ethereum network, you can’t use digital assets built from the ground up. Additionally, the platform does not support fiat currencies, so if you want to trade on the exchange, you’ll need to have ERC-20 tokens in your online wallet.
All trades that take place on the platform involve two parties: the taker and the maker. The maker creates the market order on the order book before the transaction, while the taker is the one who places an order that matches the maker’s request.
The trading fees for makers on the IDEX platform are 0.20%, which is a little less than the market average. Takers get a reasonably good deal as well, as they are only charged 0.10% per trade. However, keep in mind that takers are responsible for the gas fees for each transaction, so they may wind up paying a little more than 0.10%.
Withdraws on the IDEX platform are subject to a 0.2 ETH minimum, mainly due to gas fees and the way gas costs are applied. If you don’t have the required 0.2 ETH available in your account, you’ll have to deposit more to withdraw the full amount of any given token.
IDEX offers a native token on its platform: the AURA token.
Users can start staking their AURA on the platform’s chain and begin earning rewards in the form of fees on the exchange. The platform aims to incentivize traders and makers by providing additional liquidity in the form of AURA tokens to high-profile users.
Overall, IDEX is a platform that supports real-time trading along with high-transaction throughput. Users will experience an exchange that offers off-chain trading along with smart contract technology that provides a fast and secure platform.
The beauty of the exchange is that it operates at a speed that users can only typically find on a centralized exchange while also offering the security, safety, and protection of a decentralized platform.
With this hybrid combination, IDEX sets itself apart as an excellent option for anyone looking to buy, sell, and trade ERC-20 tokens that aren’t easy to find on other platforms.