1inch Review: Pros, Cons, and More | The Ascent by Motley Fool – Motley Fool

1inch Review: Pros, Cons, and More | The Ascent by Motley Fool – Motley Fool

What could be improved

Not regulated in the U.S.

1inch is not licensed to operate in the United States. This is most likely because its service is anonymous. Most U.S. cryptocurrency exchanges need to collect personal information from their customers to comply with anti-money laundering laws.

While 1inch has been operating for several years and seems to be a legitimate website, you still need to understand the risks. If you use an exchange that is not licensed to operate in your country, you can’t seek help from the authorities if it turns out to be a scam or you somehow lose your money. In addition, the service may close down your account if authorities crack down on unauthorized exchanges. You are breaking its terms of service by using it from the U.S.

If you are a U.S. resident, there are a number of excellent licensed cryptocurrency exchanges and it makes sense to use one of these.

Gas fees

1inch does not charge its own fees, but it is not free. You need to pay fees for every action you take — from adding liquidity to trading your crypto.

1inch runs on the Ethereum, Binance Smart Chain, and Polygon networks. Each one charges transaction fees — called gas fees — to cover the costs involved in processing transactions. That fee changes depending on how busy the network is. If lots of people are trying to use the platform, fees will be much higher.