What Is 0x (ZRX)? How It Works & Where To Buy It

0x (ZRX) is a unique decentralized exchange that offers users access to various DeFi products.

The DEX has a primary focus on the peer-to-peer trading of assets and claims to be more affordable and efficient than the majority of decentralized exchanges currently on the market.

ZRX is currently the 114th largest cryptocurrency by market cap.

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How 0x (ZRX) Works

0x (ZRX) is a decentralized exchange that positions itself as a peer-to-peer exchange. It boasts low trading fees and unique exchange functionality when compared to some of the top protocols in the crypto space.

Decentralized exchanges have become especially popular in recent years because people are less and less willing to give out their sensitive data to centralized authorities.

Decentralized exchanges:

Don’t require a KYC
Allow users to trade anonymously
Don’t hold users’ private keys.

Aside from facilitating decentralized trading, 0x also allows anyone to build a DEX atop the 0x protocol. Developers can utilize the 0x developer kit and the 0x API to ensure a seamless experience.

Much like other protocols, the 0x platform is able to achieve its functionality through the use of smart contracts. These smart contracts ensure that trades and all actions are secured and can’t be reversed.

Centralized exchanges on the other hand have a very different front-end experience. Users typically use fiat currencies to purchase crypto from an exchange. On centralized exchanges, paying trading fees is typically in the exchange’s native token or Tether USDT. Whereas decentralized exchanges built on the Ethereum blockchain, require gas fees to be paid in a portion of an Ethereum token.

The 0x protocol handles the gas fee structure a little differently than other decentralized exchanges; it utilizes a relay mechanism that makes use of off-chain broadcasts for smart contracts and on-chain settlement.

Additionally, it should be noted that whenever transactions occur on the platform, tokens aren’t held in the hands of relayers. The smart contracts that are utilized are simply facilitating the transfer of value.

For instance, in your own liquidity pool on the 0x platform, the tokens deposited into the pool would still be yours, and the smart contract would simply facilitate the transfer of value.

The 0x platform boasts faster and cheaper transactions, and this has garnered the platform both exposure and adoption in recent months. It also offers a unique settlement mechanism that leverages off-chain settlements to enable smoother and more efficient transactions on the platform.

This is especially important because of the exorbitant gas fees users have been paying on the Ethereum network. Many individuals are seeking an alternative decentralized exchange that is more affordable but remains a secure platform. 0x claims to be the optimized alternative that doesn’t charge fees that are simply unaffordable; this is one of the main reasons the platform has attracted the attention of several venture capitalist firms.

Users seeking more detailed information about the 0x protocol can read through the whitepaper.

What Is 0x Protocol (ZRX) Used For?

Utility coins, like ZRX, are used to compensate relayers for the expenses associated with trading in exchange for holding an order book. The 0x ecosystem had tremendous growth in the year 2020, as 0x reached a total transaction volume of over $5 billion in January 2021.

ZRX is used as a governance token and this contributes to the asset’s worth to a large extent. The ability of holders of ZRX tokens to participate in protocol changes and developments is one factor that may drive rising demands for the token. Because there is a restricted supply of ZRX, the price of ZRX and its worth on the market might be influenced by scarcity.

Additionally, some individuals choose to day trade or swing trade ZRX tokens. They’re looking for opportunities to benefit from price fluctuations. This has the potential to be very profitable, but it also carries a significant amount of risk.

Where To Buy 0x (ZRX)

0x (ZRX) has attracted a significant amount of retail and institutional investors in recent months. The decentralized exchange boasts some unique value proponents which have led to its flourishing recently.

0x (ZRX) is available for purchase on most centralized cryptocurrency exchanges. However, you must first deposit currency into an exchange before you can buy ZRX tokens on a centralized exchange. Your ZRX digital wallet on the exchange will then be credited with ZRX tokens.

You can purchase, trade, and store tokens at the crypto exchanges listed below:

Before purchasing any tokens on a centralized exchange, users are expected to have a thorough understanding of the risks involved. When a person stores tokens on an exchange, it effectively implies that they no longer have control over their private keys. This is because the user’s tokens might be stolen in the event that the exchange is compromised.

The vast majority of users store their tokens in a digital or physical wallet. On the market, one may choose from a variety of different wallets designed to hold 0x tokens. The most well-known and dependable digital wallet is MetaMask.

FAQs About 0x (ZRX)

How long has 0x (ZRX) existed?

The 0x protocol was initially launched in 2017. The decentralized protocol has a core focus on the peer-to-peer trading of assets. The DEX is built on Ethereum, which is currently the blockchain network with the highest TVL.

What’s controversial about 0x (ZRX)?

Both individual investors and institutional investors find a great deal of interest in the decentralized financial industry. The industry is thriving, and frequent new innovations are taking place inside it; yet, the industry is also susceptible to exploits because of its rapid growth and lack of regulation. Over the last several years, many of these vulnerabilities have caused customers to lose millions of dollars.

When examining initiatives, individuals should constantly analyze both the accuracy and rationality of the information they uncover. You should get as much information as possible about cryptocurrencies before you spend any money in any enterprise using them.

Let’s take a look at the biggest controversy surrounding 0x (ZRX).

Competition – Over recent years, and especially since the 2021 bull run, there has been an exponential interest in decentralized exchanges and DeFi. Users are drawn to the space because of DeFi products like staking and liquidity pools, as well as the distinct lack of central authority and regulation. This makes it easy for users to engage in various activities that have previously been unattainable.
Because of the surge in interest, several decentralized exchanges have emerged recently. Some of these platforms have managed to attract hundreds of thousands of users and have already processed billions of dollars. For projects such as 0x, it is incredibly difficult to dominate a space that is so incredibly competitive.

The 0x protocol will need to remain innovative and provide users with unique value proponents if it wants to dominate, unfortunately, many individuals believe the competition the protocol faces is superior.

How many 0x (ZRX) tokens are there?

At the time of writing, 0x (ZRX) has a circulating supply of 847,496,054.80 ZRX (85% of the total supply).

The total supply of 0x (ZRX) is 1,000,000,000.

The max supply of 0x (ZRX) is 1,000,000,000.

Can 0x (ZRX) be mined?

0x (ZRX) can’t be mined. However, ZRX token holders can earn rewards by participating in liquidity pools and a host of other DeFi products.

Users should be wary of websites that offer ZRX mining services. These websites are falsely advertising and users could expose themselves to permanent losses if they don’t act with caution.

Decentralized platforms offer people various ways to earn rewards from their crypto assets. Users can simply connect their digital wallets to the platform and start participating in staking, farming, and LPs.

What is the market cap of 0x (ZRX)?

The market cap of 0x (ZRX) is the total amount of coins in circulation multiplied by the current ZRX price.

0x (ZRX) Market Cap = 847,496,054.80 ZRX x $0.29 = $247 million (114 largest market cap).

The market cap is continuously fluctuating as the market changes.

Biggest Competitors Of 0x (ZRX)

The decentralized exchange sector is growing exponentially. In 2021, decentralized exchanges saw their biggest rise in popularity to date. The likes of Uniswap and Pancakeswap managed to facilitate trading volumes that were larger than many centralized exchanges.

Users are especially drawn to DEXs because of their unique DeFi products which include staking, farming, and liquidity pools.

The biggest competitors of 0x (ZRX) are:

Uniswap (DEX)
Pancakeswap (DEX)

What Are The Future Plans For 0x (ZRX)?

0x will actively work on onboarding more users to the platform. The decentralized exchange sector is becoming increasingly popular and DEXs have to be innovative if they want to dominate.

0x is already a well-known DEX and offers some of the most affordable fees among all the decentralized exchanges. Additionally, the protocol will look to build more value proponents that will attract more exposure and adoption for the project.

Pros And Cons Of 0x (ZRX)

Pros

Faster and more affordable – 0x claims to be faster and more affordable than most of the DEXs on the market. This is largely due to the part relayers play in off-chain broadcasting, and on-chain settlement.

Cons

Competition – The DEX sector is incredibly competitive and 0x is going to struggle to dominate because it faces competition from the likes of Pancakeswap, Uniswap, and others.