This guide will explore the use of two new slangs named WAGMI and NGMI. These slangs are in direct contrast to each other. The fir...
In this guide, you’ll learn what a crypto trading aggregator is, how it works, why should a trader consider using one and more!
At the time of writing, there are an estimated 20,000 unique cryptocurrencies in circulation. On top of this, there are hundreds, if not thousands of different exchanges upon which these digital assets are traded, some of them centralized, some decentralized.
Given the somewhat fractured and complex state of the current crypto landscape, it’s clear that accessibility is one of the key bottlenecks preventing further mass adoption.
In fact, even the most seasoned traders can have a hard time keeping track of all the various coins/tokens across all the different exchanges, not to mention the specific trading pairs offered on each (and that’s not even taking liquidity or fees into account).
This is where crypto trading aggregators come in.
In the most basic sense, a crypto trading aggregator is a platform that collects and processes data from multiple exchanges in order to provide users with a single, consolidated view of the market.
However, not only do these aggregators show you the current price (across multiple exchanges), but they also allow you to place trades in one easy-to-use interface.
The aim is to make it as easy as possible for users to find the best prices for the assets they want to trade, without having to search through multiple exchanges individually. This is done by connecting to the various exchanges’ APIs and retrieving the relevant data, which is then processed and displayed on the aggregator platform in a user-friendly way.
There are a few different types of data that a typical aggregator will track, including (but not limited to):
Some aggregators will also track historical data, such as past prices and volumes, in order to provide users with a better overview of market trends.
There are several key benefits that make using an aggregator an attractive proposition, both for experienced traders and those new to the world of crypto. Some of the most notable advantages include:
While crypto trading aggregators are prominent across centralized exchanges (CEX), they’re also becoming increasingly popular in the world of decentralized finance (DeFi).
In DeFi, aggregators play an important role in bringing together the various decentralized exchanges (DEXes), since this is by far the most fragmented and complex part of the ecosystem. There are currently hundreds of different DEXs, each with its own native token, trading pairs, and order book.
On top of this, many DeFi protocols operate on different blockchain ecosystems, which means it is extremely difficult to cross-trade between them.
Fortunately, crypto trading aggregators like Unizen, 1inch, and ParaSwap offer a cross-chain enabled solution that makes it simple for users to trade digital assets from both centralized and decentralized finance networks (CeDeFi).
Unizen’s Trade Aggregator, for example, facilitates trades across seven different blockchains and aggregates data from over 70 DEXes, all within one user interface. This significantly improves the odds of finding a cheaper deal on your trades and removes almost all of the hassle associated with trading currencies cross-chain – not to mention the fee-saving aspect.
The main advantage here is that users will no longer need to use a blockchain bridge to convert their tokens to another blockchain’s native currency, as they will be able to trade directly between any two assets. This makes trading DeFi assets safer, simpler, and more user-friendly.
If crypto is to stand any real chance at becoming truly mainstream, then it needs to become more user-friendly. Thankfully, this is something that trading aggregators can help with.
By providing users with a single platform through which they can trade multiple assets, aggregators make the process of buying and selling digital currencies much simpler and more efficient. In addition, by tracking prices and liquidity across all connected exchanges, they can also help users get the best deals, even when trading DeFi assets.
For these reasons, it’s fair to say that crypto trading aggregators are likely to play an important role in the future development of the digital currency markets.