0x (ZRX) is an open protocol that is designed to offer a decentralized exchange as part of the Ethereum blockchain. 0x uses a protocol that involves Ethereum smart contracts allowing people around the world to run a decentralized exchange.
In the future, there will be thousands of tokens that will be available from Ethereum. 0x wants to provide an efficient and trustworthy way to exchange them. The platform is different from both centralized and decentralized exchanges, providing the best possible combination of features.
Decentralized exchanges are getting a lot of attention these days, mainly because they avoid a single point of failure. Exchanges like Coinbase and Kraken carry the of theft because they require users to put their money in the hands of a third party. If something goes wrong with it, your funds will be lost.
In the past we have seen that happen with Mt Gox in 2014 and Bitfinex in 2016, resulting in losses of $460 million and $72 million, respectively. With decentralized exchanges, all the trades happen on the blockchain, where funds are more secure.
Ox works something like this: A “maker” broadcasts his or her order. A “relayer” then posts that order in an off-chain order book and a counterparty (called a “taker”) accepts the order by pushing the transaction into the project’s DEX smart contract.
A decentralized cryptocurrency exchange seems like a logical step for the future. It will effectively take care of all the flaws the current centralized exchanges have. Due to its versatility and the easy availability of the protocol, it is not far-fetched that 0x will grow quickly, providing the basis for other similar exchange systems using the Ethereum blockchain.
How to buy 0x?
At the time of writing, 0x is trading at $0.22, posting a market cap of $112 million. It is important to note that there are currently no projects actively launched using the protocol. Once that happens, the price of the token may substantially increase.
Step 1: Get an ETH wallet
A single Ethereum wallet can hold ERC20 tokens and Ethereum. ZRX, GNT, DNT are all Ethereum tokens and can be stored on that same wallet. However, you cannot store non ERC20 tokens, for example Bitcoin or SiaCoin on that wallet.
So if you have Myetherwallet, you can store both ZRX and ETH.
Step 2: Buy ZRX from an exchange
Currencies are different in different countries, so are the exchanges that support those currencies. Every exchange that uses fiat in exchange of cryptocurrencies, has to go through a simple KYC process whereby users must submit government issued id(s) and other personal information in order begin trading on the platform.
The process usually takes 3-4 working days depending on the exchange. Once the KYC is done, you’re free to purchase ZRX, which are automatically stored in exchange’s online wallet.
1. How to buy 0x using fiat
Unfortunately, at the time of writing, there is no way to buy ZRX using fiat directly.
2. Buy ZRX using Bitcoin
There are plenty of exchanges that support ZRX/BTC pair
3. Buy ZRX using Ethereum
4. Buy ZRX using USDT
Step 3: Withdraw ZRX to your wallet
Leaving your coins on the exchange is not recommended. After the purchase of ZRX tokens from any of the exchanges, you must transfer them to a hardware wallet or choose any of the other wallet options above depending on your security needs.