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IDEX Exchange

The cryptocurrency market has evolved to a point where it is incredibly diverse with thousands of different cryptocurrencies and hundreds of crypto exchanges. Recently, the focus of crypto investors has shifted from centralized crypto exchanges to decentralized crypto exchanges, creating a decentralized finance (DeFi) market. Projects such as IDEX, a decentralized exchange are set to gain traction in this DeFi market. 

In this concise guide, we will focus on the IDEX crypto exchange and its different features.

Connecting your IDEX Address to ZenLedger For Your Crypto Tax Forms

  • To import your transactions, log in to IDEX and copy your receiving address.
  • Paste the receiving address you copied from IDEX Exchange into the wallet address field in ZenLedger.
  • Select the proper coin from the dropdown list.
  • Select if the wallet is based in the USA or not.
  • Then hit add coin.

What is IDEX (IDEX)?

IDEX is a decentralized crypto exchange, which combines the best features of a decentralized and centralized exchange. This best of both worlds not only makes the IDEX crypto exchange incredibly user-friendly but also makes the network faster while maintaining its integrity as a decentralized ecosystem. 

The exchange is hosted on both Binance Smart Chain (BSC) and Ethereum. Projects similar to IDEX use the automated market maker model to perform trades on a decentralized exchange, but IDEX takes a different approach. 

IDEX leverages order books to initiate and carry out token exchanges. Users still debate whether to call IDEX a decentralized exchange or a non-custodial exchange because it asks its users to provide their email addresses to complete the KYC process. Also, it offers a stop-loss function which is usually associated with centralized exchanges. Recently, IDEX has made itself available on Polkadot as a part of its IDEX Multichain strategy. 

IDEX crypto exchange users can swap tokens supported by Polkadot, Ethereum, and Binance Smart Chain. The goal behind this diversity is to enable thousands of transactions within seconds. IDEX users can stake the utility token of the exchange (IDEX) and validate transactions on the off-chain ledger. 

How Does IDEX Crypto Exchange Work?

IDEX works as an order book exchange as the project combines the elements of a decentralized as well as a centralized exchange to expedite faster transactions on the blockchain network. 

For optimum speed and functionality on the Ethereum network, IDEX leverages Layer-2 Optimistic Rollups, which offer greater transaction speeds while maintaining the decentralized model on the IDEX mainnet. 

Ethereum users can experience congestion during peak transaction hours, which results in increasing gas prices. For this reason, Ethereum is moving from a proof-of-work (PoW) consensus algorithm to a proof-of-stake (PoS) consensus algorithm with its Ethereum 2.0 upgrade. 

To ease up the congestion and lower gas prices, the IDEX crypto exchange utilizes Layer-2 scaling solutions and Merkle trees. This mixture enables the IDEX network to settle transactions when they come in bulk.

IDEX Tax Reporting with Zenledger

  1. Connect and Import: Link your IDEX account to Zenledger and import your transaction data, covering your trading activities on the IDEX platform.
  2. Generate Tax Reports: Utilize Zenledger to generate personalized tax reports, specifically designed for your location. These reports include essential information such as capital gains and taxable income.
  3. File Your Taxes: Download the necessary tax documents and forms, complete your tax return, and adhere to your local tax regulations. For specific guidance, consider consulting a tax professional.

What Makes IDEX Exchange Unique?

IDEX promises foolproof execution of trades with low latency. IDEX is unique as it offers sourcing exchange services. Also, it is the first DEX that offers full custody of funds to its users. A user-friendly UI, staking with automated rewards, and advanced order types make IDEX a valuable and unique project in the DeFi sector.

How is the IDEX Crypto Exchange Network Secured?

The exchange uses smart contracts to secure its users’ funds rather than using the questionable security of centralized exchanges. Additionally, the IDEX network communicates using external data by connecting to networks such as BSC and Ethereum adding an extra layer of security. 

IDEX incentivizes its Node operations as integral network participants with IDEX, the utility token for validating transactions and securing the protocol by staking as Node operators. 

How to Use IDEX Crypto?

  1. Sign Up: Register for an account on the IDEX platform by providing your email address, creating a password, and finishing the KYC process. 
  2. Secure Your Account: Enhance your account security by enabling two-factor authentication (2FA) through the provided options.
  3. Deposit Funds: Deposit the cryptocurrency you want to trade from your external wallet into your IDEX wallet. Obtain the deposit address for your chosen cryptocurrency within the IDEX platform.
  4. Trade: Select your trading pair (e.g., ETH/USDT), set your desired price and quantity, and execute your trade directly from your IDEX wallet.
  5. Withdraw Funds: After trading, withdraw your funds back to your external wallet by specifying the withdrawal address and confirming the transaction. This ensures the safety of your assets.

Always prioritize security and be vigilant while trading to protect your investments.

Can IDEX Create My Tax Forms?

IDEX’s tax reporting is limited to its platform, and it doesn’t cover users’ activities on other exchanges, wallets, or platforms. If you engage in cryptocurrency trading or use multiple services like Coinbase or BlockFi, IDEX might not offer a comprehensive overview of your gains, losses, and income for tax purposes. 

Fortunately, Zenledger offers a solution to this challenge. By connecting to multiple exchanges, wallets, and platforms, Zenledger can consolidate your cryptocurrency transaction history from various sources, including IDEX. It automatically calculates your gains, losses, and income, providing a comprehensive overview of your crypto tax obligations. This way, you can ensure that you have all the necessary information for accurate and stress-free tax reporting, even if you use multiple cryptocurrency services beyond IDEX.

Summary

IDEX is a perfect blend of centralized and decentralized exchanges, but still, the company is working to improve and they are developing IDEX 2.0. This upgrade will bring a host of new tools and features to its users. Additionally, the upgraded version will bring more integrated platforms, more functionality, and more supported crypto assets. 

ZenLedger can help you easily calculate your crypto taxes, and also find opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional-prepared plans!

Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide tax, legal, or financial advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

IDEX Crypto FAQs

1. Is IDEX a good exchange?

Yes, IDEX is a good exchange. It is a decentralized crypto exchange, which combines the best features of a decentralized and centralized exchange. This best of both worlds not only makes the IDEX crypto exchange incredibly user-friendly but also makes the network faster while maintaining its integrity as a decentralized ecosystem.

2. What is the IDEX coin?

IDEX is the native coin of the IDEX exchange. It is an Ethereum-based token that powers the IDEX exchange. IDEX incentivizes its Node operations as integral network participants with IDEX coin for validating transactions and securing the protocol by staking as Node operators.

3. How old is IDEX crypto?

IDEX was launched in 2017, but its dev team is working on version 2.0. This upgrade will bring a host of new tools and features to its users. Additionally, the upgraded version will bring more integrated platforms, more functionality, and more supported crypto assets.

4. Why should I invest in IDEX?

The fact that the IDEX exchange is a mix of decentralized and centralized components makes it a valuable project. The exchange’s intrinsic value is driven by the number of active users, its features, technology, tools, and its capacity to scale. Moreover, the exchange’s ability to deliver expected services to its users makes it exceptional and reliable.