# Unlocking DeFi Potential: How 1inch Revolutionizes Crypto Trading

By [Web3 News](https://paragraph.com/@jashira-web3) · 2024-04-29

defi, 1inch, dex, token

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1inch is a leading platform in the decentralized finance (DeFi) sector, specializing in the aggregation of decentralized exchanges (DEX). Its goal is to optimize cryptocurrency transactions to offer users the best possible rates by combining different liquidity sources.

**How Does 1inch Work?**
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1inch integrates various exchange protocols into a single interface, allowing users to access efficient and cost-effective exchange routes. It uses an advanced algorithm to minimize slippage on large orders and reduce transaction costs.

### **DEX Aggregator**

The 1inch DEX aggregator searches multiple exchanges for the best available exchange rate, allowing users to conduct cheaper transactions by comparing real-time rates across different DEXs.

### **1INCH Governance Token**

The 1INCH token allows users to participate in the platform's governance. This token is also used for fee stabilization and as an incentive in liquidity mining programs.

**Products and Services**
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In addition to the aggregator, 1inch offers a range of innovative products and services:

*   **Liquidity Protocol**: Facilitates automated exchanges between different cryptocurrencies.
    
*   **1inch Wallet**: A secure solution for managing digital assets and interacting with the DeFi ecosystem.
    
*   **1inch Card**: Allows for everyday cryptocurrency payments.
    

Experimenting with 1inch: Creating my new wallet
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After the introductory theory that allows us to understand more about 1inch, I will proceed to create my wallet on the platform.

![](https://storage.googleapis.com/papyrus_images/74cdfa4a04a5f932e9ab2c9e90ab93c2.png)

I wanted to install an extension on my laptop but I could only download it and install it on my cell phone.

So I downloaded it from the App Store and the first windows that popped up for me were the following:

![](https://storage.googleapis.com/papyrus_images/a5f2e1901ea53e617c404e9f67163b87.png)

I then followed the steps to create a new wallet, chose the color for the card and it also gave me the option to give it a custom name. Then I saved and set a password and the possibility to activate the face ID. After those few additional steps, I was finally ready to securely manage my future cryptos.

![](https://storage.googleapis.com/papyrus_images/b901494aaee5b73fe88fb3499d24365c.png)

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*Originally published on [Web3 News](https://paragraph.com/@jashira-web3/creating-a-defi-wallet)*