The 0x protocol is a decentralized exchange protocol for trading ERC-20 tokens on the Ethereum blockchain. It allows buyers and sellers to connect directly without the need for intermediaries.
Developers can build their own cryptocurrency exchanges using 0x and its open protocol. The protocol's native token is called ZRX, which is used to pay trading fees to relayers.
Select Your Relayer
You can choose a relayer that suits your trading needs. Relayers play a crucial role in the 0x protocol by hosting order books and facilitating trades. They are responsible for broadcasting orders and bringing liquidity to the network. When a trade is executed through a relayer, it is known as a Broadcast Order.
Connect an Ethereum-compatible Wallet
To use the 0x protocol, connect your Ethereum-compatible wallet to a decentralized application (dApp) that integrates with 0x. Examples of such dApps include Nuo, Zerion, DeFi Saver, and Radar Relay, built on top of the 0x protocol.
Start Placing Trade Orders
You can place orders after connecting your wallet to a 0x-enabled dApp. Specify the token pair you want to trade, the amount you wish to buy or sell, and the desired price. The 0x protocol supports both market and limit orders, giving you flexibility in your trading strategies. The dApp will provide you with options to review and confirm your order.
Settle Your Trades
When a counterparty fills your order, the trade is settled on-chain using the 0x protocol's smart contracts. The settlement ensures the transfer of tokens between the parties involved. The decentralized nature of the protocol provides transparency and security throughout the trading process.
Monitor and Manage Your Trading Positions
After settling your trade, you can monitor its progress and manage your positions through the 0x-enabled dApp. You have complete control over your tokens and can choose to hold them or transfer them to another wallet or exchange.
Remember to exercise caution and do thorough research before engaging in any financial transactions in the crypto market.