Newcomers to cryptocurreny are often hesitant to use decentralized exchanges because they are perceived to offer less guidance and support. In this blog post, we will guide your through the process of purchasing tokens on IDEX, the largest decentralized exchange by volume at the time of writing.
If you have ever considered purchasing cryptocurrencies, you probably noticed the large number and different types of cryptocurrency exchanges that exist out there. Through the maze of new companies popping up daily, it can sometimes be difficult to keep the overview. In this article, we will guide you through the process of purchasing tokens on IDEX, the largest decentralized exchange by volume at the time of writing. We have also prepared a tutorial video of the whole process that you can watch below. However, before we dive into the details of purchasing tokens on this particular exchange, let us start with a brief description of the main types of cryptocurrency exchanges.
When it comes to trading digital currencies, we most commonly distinguish between centralized and decentralized exchanges. In real life, these categories are somewhat blurry and you will find many exchanges which are somewhere in between. Nevertheless, it is important to note the differences between the two ends of the spectrum:
Once you decided which type of exchange best suits your needs, there is a large number of options to select from in both categories. In this blog post, we will take a closer look at IDEX, which currently is the largest decentralized exchange for ER20 tokens in terms of volume. You can access it here: idex.market.
In order to trade on IDEX you first have to unlock your wallet. There are a few options to do that. You can either restore a keystore file, use your private key or connect a software or a hardware wallet. When choosing between these options, you should keep in mind that for safety reasons, you don’t want your private key to touch the internet, so uploading it here is not a great option. Your best options are to either use a software or a hardware wallet. We will focus on accessing IDEX via a software wallet, more specifically MetaMask. This is of course only one of the many possible choices and it is your own responsibility to choose a provider you trust.
If you don’t have MetaMask yet, you need to install a browser extension. Search for the Google Chrome “MetaMask extension“ and add it to your browser. Click on the icon in your browser and follow the prompts to set up MetaMask. Since this is fairly easy, we won’t go through the individual steps here. Once you are done setting up the software wallet, you can either purchase ETH against fiat on a centralized exchange or you can send the ETH you already have to your MetaMask wallet. Once your ETH has arrived in your MetaMask wallet, you proceed to unlocking it for IDEX. To do this, click on the unlock wallet tab on the IDEX website. Then choose the software wallet option and click on unlock software wallet.
Now you are logged into IDEX with your Ether address. The next step is to deposit from your software wallet to the IDEX smart contract. This is possible under the Balances tab in the navigation.
After this set up, we’re now ready to go check out IDEX for the token we would like to buy. Just enter the ticker symbol in the search box. For our example, we would like to buy some VLD token. VLD token support the personal data marketplace ecosystem of the VETRI application. The VETRI marketplace enables you to part take in the personal data economy, selling your anonymized data to researchers, marketers and product developers and getting rewarded for it.
To purchase the token, we type VLD into the search bar and can now see the chart, the buy and sell option, orderbook and history of trades like on any other exchange. To place an order, we need to write the price we want to pay per VLD token as well as the amount of VLD tokens we would like to purchase in total.
You can choose between market and limit orders. Limit orders will ensure that the transaction is only executed at or below the price you indicated per token. Market orders will buy you any amount of VLD you can get for your ETH at the current market rate.
When you are happy with the transaction parameters you have set, click “buy”. MetaMask will prompt you to confirm the transaction. Now your transaction is added to the order book. Should you change your mind, you can delete your transaction any time as long as it hasn’t been executed.
Once it has been executed, you will be able to see your VLDs in the balance of tokens. You can either withdraw them to your MetaMask or continue trading with them on the exchange.
That’s it. Pretty easy right? We hope this little tutorial was useful to you and wish you a lot of fun exploring the universe of decentralized exchanges.