0x combines the strength and the weakness of both the centralized and the decentralized exchanges to ensure a secure and quick exchange trade on the Ethereum blockchain.

Due to this combination of features, 0x is believed to be a popular way to exchange the tokens from Ethereum in the future as 0x is found to be both efficient and a reliable.

Let’s learn more about this project and see what makes it different from the other projects.

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What is 0x Protocol?

Ox is an open, free, permissible protocol which makes it easier to exchange the ERC20 tokens on Ethereum blockchain. It allows both individuals and companies to use the 0x in the backend to employ a decentralized exchange.

Since this protocol is built on the Ethereum’s distributed network with no centralized system, the token exchanges made on this protocol are trustless exchanges and there is no chance of a system failure or a downtime. All the exchanges are settled automatically without any considerable risk.

What’s different about the 0x decentralized exchange?

0x isn’t an entirely decentralized or exchange and addresses a few of the challenges of using decentralized exchange which is slow, expensive, illiquid and cannot be operated it each other.

Also, for operating an order book in this exchange, you have to go through a blockchain which means that everything is held at block times and there is an additional network transaction fee at every block interaction.

0x uses a standard protocol which transports the orders off-chain so that you don’t have to pay unnecessary network transaction fees at every blockchain interaction and also helps in speeding up the process.

However, once the orders are settled they have to go back on the blockchain but you end up saving a lot when you don’t have to pay for every blockchain transaction.

Who’s Behind 0x Project?

The 0x project was started by Will Warren and Amir Bandeali and since then they have included some exceptional members in their team.

They are a collection of blockchain engineers, end-to-end business strategists, software engineers, graphic designers, product designers, and technologists which are focused on building a project which employs the advantages of decentralization to the global financial organization.

0x Team

How Much Does 0x Cost?

0x allows users to use their protocol free of charge but if someone uses the 0x protocol to build a decentralized cryptocurrency exchange then the Relayer might choose to charge fees for the exchange.

Since 0x protocol protects users from paying numerous transaction fees by keeping the orders off-chain when there is an adjustment or a new order is made so there is an opportunity for Relayers to charge it for usage.

What is 0x OTC?

The 0x team also created another product which uses the 0x protocol which is known as 0x OTC. This product allows a P2P exchange of Ethereum tokens without the need of a Relayer but only if they directly connect with the counterparty.

0x OTC is currently active and is simple to use, all you need to do is send a link to your counterparty for creating and transmitting your order.

This allows you the chance to send your order by your chosen method since it is relayed through the blockchain. So, you can use social media, email, or any other method of posting the order.

What’s the Utility of the 0X (ZRX) tokens?

Another unique aspect of 0x project is the unique Ethereum tokens, popularly known as ZRX, which can be used by the 0x users to pay the trading fees that is employed by the Relayers for their services.

It is also a way to upgrade the 0x protocol system by using the decentralized governance of 0x protocol allowing the masked smart contracts to be modified and upgraded over time.

In layman terms, if you own ZRX tokens then you have the right to provide some inputs about the protocol and its improvements depending on the number of tokens that you own.

Around 1 billion ZRX tokens were supplied during a recent token launch in August 2017 out of which 50 percent of tokens were retained by 0x (15), developer fund (15), founding team (10), and advisors and early investors (10).

The tokens that were bought during the launch were immediately liquidated and people will know more about the tokens held by the founders, advisors, staff members, etc. in the course of next 4 years.

How to Buy 0x ZRX Tokens

How to buy Ethereum:

Purchasing Ethereum is easy and simple and can be done on a variety of Ethereum exchange platforms. Once you have bought Ethereum, you can exchange it for 0x coins and then store the tokens in your 0x wallet.

Here is a detailed guide on how you can buy Ethereum and then exchange it for 0x:

  1. Choose an fiat to cryptocurrency Exchange like Coinbase to purchase Ethereum. You can find our complete list of the best cryptocurrency exchanges here.
  2. Sign up for Coinbase account and verify your bank account or credit/debit cards.
  3. After verifying your payment option, buy the desired ‘Ethereum’ tokens.
  4. Confirm your Ethereum purchase.

buy Ethereum on Coinbase

How to exchange Ethereum for 0x on Binance

1. Sign up on Binance for exchanging your Ethereum for 0x tokens.

2. Login to your Binance account by using your email and password.

3. Deposit your Ethereum coins in Binance from your Coinbase account

4. Wait for the coins to appear in your Binance wallet. It might take somewhere around 20 minutes to an hour.

5. Once Ethereum displays in your available balance, you can go ahead with the exchange. For that, go to trade option is Binance and type in 0x to access the ZRX/ETH exchange market.

Trade Ethereum of 0x

6. Choose the Market option on ZRX/ETH page to purchase the ZRX coins at the current value.

Market Option on Binance

7. Navigate to ‘Funds’ on the top menu and then click on ‘Deposits Withdrawal’. Your ZRX tokens can be seen.

8. You can now transfer these tokens to the MyEtherWallet by using the steps given below.

How to Setup 0x Wallet and Store your ZRX Tokens?

Setting up your own 0x wallet is easy and simple. Since 0x can be exchanged on any Ethereum platform, you can use the MyEtherWallet option to store your ZRX tokens. MyEtherWallet can store all kinds of coins on the Ethereum blockchain so you wouldn’t have trouble storing your 0x tokens here too.

Here is a detailed guide on how you can purchase ZRX tokens:

  1. Create an account at MyEtherWallet.com
  2. Download your Keystore File and backup your file to multiple locations to keep it safe and secure.
  3. Print the strong encrypted key provided to you and keep it hidden as this will protect your coins and tokens from being stolen.
  4. To unlock and access your wallet, you need to choose ‘Keystore File’ option and then upload the Keystore file that you saved in step 2.
  5. You will see a string of letters and numbers under ‘Your Address’ label. This is your wallet address and this is where you will be receiving your 0x coins so copy the address and keep it safe.

You now have a 0x wallet where you can store your 0x tokens once you have exchanged it for Ethereum. To know more about how to buy and exchange Ethereum, see the next section.


Isn’t an Exchange Wallet Safe?

While a lot of people might think that leaving your ZRX tokens in Binance is fine, it is actually not a secure platform and offers hackers with a great opportunity to steal your cryptocurrency.

So, make sure you store your tokens in a dedicated cryptocurrency wallet like MyEtherWallet which is both safe and convenient.

Once you have your ZRX tokens at the Binance exchange, you simply need to send it to your MyEtherWallet’s wallet for which you had earlier saved the private key.

Confirm your transaction via 2FA or email verification and then check your MyEtherWallet for the newly transferred 0x tokens. You will find them under the ‘Token Balances’ where they are safe and protected from the internet hackers.