Created in 2019 by Sergej Kunz and Anton Bukov, 1inch scans platforms like Uniswap, SushiSwap, Balancer and many more to provide users with the best prices for trading and swapping tokens.
In 2025, there are more decentralised exchanges to choose from than ever before. 1inch is changing the way users trade crypto by finding the better crypto token swap rates across different decentralized exchanges.
The platform uses a method called “Pathfinder Algorithm” to split up the trades. This helps in lowering down transaction fees, making users’ trades more efficient along with reducing gas fees.
1inch checks prices across exchanges to bring out the cheapest route for user’s trade. So, instead of picking a single exchange, 1inch lets users use them all to come up with the best one.
In this article, we will understand what is 1inch, key features, and its pros and cons. Also, we will learn how to use 1inch with the help of a step-by-step guide.
What is 1inch?
1inch is a decentralised finance (DeFi) platform and cryptocurrency that allows users to exchange digital assets. It is an aggregator that allows users to find the best prices for crypto trading across multiple decentralised blockchains and exchanges.
The 1INCH token is the governance and utility token of the 1inch network, where holders can stake their tokens to participate in the network’s DAO governance.
Rather than trading on a platform, 1inch breaks up trades across different liquidity sources to find good rates. This reduces slippage, and lowers gas fees. 1inch uses Pathfinder algorithm, an advanced routing algorithm that finds the most efficient trading paths, minimising costs.
Key Features of 1inch Platform
1inch is a DEX aggregator which is packed with tools that make crypto trading better and simpler. Let us understand the main features of the 1inch network.
Finding Best Prices
When you want to swap tokens, 1inch helps users to search multiple popular decentralized exchanges (DEXs) like Uniswap, SushiSwap, PancakeSwap, Curve, and many others to find the best possible price for trading. It aggregates liquidity from different sources by using the Pathfinder algorithm.
Reducing Gas Fees
1inch offers multiple options that enable users to almost fully cover the gas fees. It finds the best route for users to trade, helping them save on Ethereum gas fees. It also offers users to enable the ‘Chi Gas Token’ feature, which can reduce gas costs and ultimately lower transaction fees. The ‘Chi Gas Token’ is an ERC20-standard token that is meant to be used on 1inch exchange to pay transaction costs.
Earning with Liquidity Pools
Users can earn with 1inch by providing liquidity to pools and collect extra rewards in 1inch token for participating in liquidity mining programs.
A liquidity pool is a digital pile of cryptocurrency locked in a smart contract. The traders who come to swap tokens in the liquidity pool can earn through it using the arbitrage difference in the price of the token.
Setting Trade Price
Sometimes, a user wants to buy or sell at a specific price. Unlike regular trades, the user can set limit orders selecting the price as per their choice and then wait for the market to reach there. Hence, there is no need for a centralized exchange.
Trading Across Different Chains
1inch works across multiple blockchains, including Ethereum, Binance Smart Chain (BSC), Polygon, Avalanche, Optimism, and Arbitrum, giving users the flexibility to trade wherever they want.
How to Use 1inch?
1inch makes swapping tokens easier even if you are a beginner. Here’s a step-by-step guide on how to use the platform.
Step 1: Visit 1inch Platform
Visit the official 1inch website to access the trading platform.
Step 2: Connecting Your Wallet
- Look for the “Connect Wallet” button at the top right corner.
- Pick your wallet – you can use MetaMask, Trust Wallet, Coinbase Wallet, or WalletConnect.
- Your wallet will ask you to approve 1inch – go ahead and confirm.
Step 3: Trade Settings
- Pick the token you want to trade (like ETH).
- Choose what you want to get in return (like USDT).
- Additionally, you can also choose to opt for cross-chain.
Step 4: Checking Trade Details
- 1inch will search around and find you the best price across different exchanges.
- Before proceeding ahead, take a quick look at things like gas fees and slippage.
Step 5: Executing Trade
- Click the “Approve” button.
- Confirm the trade when your wallet pops it up again.
Once the process is completed, you’ll see new tokens in your wallet.
Pros and Cons of 1inch Network
| Pros | Cons |
| Cheaper Transaction Fees | ‘Gas Fees’ Applies |
| DEX Aggregation Platform | Not Tailored to Beginner Investors |
| Best Exchange Rates | Not All Tokens are Available |
| Various Trading Tools | Limited Fiat Support |
| Robust Security | High Volatility |
| Integration with Wallets |
Conclusion
While there are other aggregators out there, the 1inch application still remains one of the finest choices in crypto space that finds the best price across various exchanges and lowers fees when users swap tokens.
What makes 1inch special is how it works across multiple blockchains, splitting up trades in efficient ways that help traders to save money. It uses smart routing techniques and enables users to earn by providing liquidity to pools. 1inch provides security, flexibility, and makes crypto trading smoother and cost-effective.
