Crypto Aggregators Are Destined To Become #1 For All Crypto Traders

Crypto enjoys its share of ups and downs, but on the whole it’s an industry that has snowballed, with more than 20,000 different cryptocurrency tokens now in circulation. With so many different tokens around, there are opportunities galore for traders hoping to make a profit on their price movements. 

Cryptocurrency traders are well catered too, with hundreds of different exchange platforms available. They can choose from centralized platforms such as Binance, Coinbase and Kraken, as well as decentralized alternatives like PancakeSwap, SushiSwap and Uniswap. But for all of the innovative functionalities provided by each exchange out there, traders using a single platform tend to find themselves restricted due to the fact that each one essentially operates in a bubble, with its own level of supply and demand. 

Another problem with using a single exchange platform is that none of them support every single token that’s on the market. Traders can counter this by using more than one platform, of course, but that creates headaches when it comes to keeping track of their crypto assets. There are also difficulties in conducting transactions across different chains, as each exchange platform only supports a limited number of blockchains. 

Crypto Aggregators

Because individual trading platforms are unable to satisfy the needs of professional traders, crypto aggregators such as RocketX, 1Inch, Kyber Swap and Paraswap have been quietly gaining popularity. As the name suggests, crypto aggregators work by combining data and price feeds from multiple crypto exchanges, merging them to help traders find the best possible price for any asset they’re trading. 

With an aggregator, traders can access numerous popular exchanges from a single platform, as opposed to jumping between different portals. They’re especially useful for traders who want to keep an eye on the price movements and trends of dozens of different tokens at once. 

The main advantage of crypto aggregators is that they provide a consolidated view of the crypto markets, allowing users to compare prices across dozens of different platforms and execute their trades at the best possible price while paying lower fees. Aggregators can do this because they’re able to track the bid and ask prices and liquidity of multiple digital assets on every platform they’re currently being traded on. 

How Do They Work

In the case of RocketX, it works by using APIs to pull data from the live feeds of hundreds of different CEX and DEX platforms. This data is then processed and displayed in a user-friendly interface, where users can view it in the form of charts or tables. 

RocketX retrieves the real-time price, trading volume and liquidity data for each token it supports, across every exchange where it can be bought or sold. This data is processed and converted into a uniform format, and the average price across multiple exchange platforms can be shown. 

This information allows traders to dig down into the differences in price across different exchange platforms. At the same time, they can use the aggregator to buy or sell any asset at the best possible price, interacting with users of multiple trading portals to fulfill their orders. Some aggregators go even further, allowing users to customize the UI to zoom into, or out of, specific data points. In this way, users can keep themselves better informed of market trends and asset price movements across different platforms. 

Simplifying Cross-Chain Interactions

Where RocketX and other aggregators stand out is their ability to facilitate cross-chain transactions in a matter of seconds, with only a few clicks involved. Previously, transferring assets across chain has always been a headache-inducing task, with traders required to use risky blockchain bridges and lock their assets in smart contracts, only to gain a “wrapped” version of that asset on the alternative chain. 

RocketX, on the other hand, enables users to bridge their assets from one chain to another in a matter of seconds, without having to interact with any complex protocols. With its support for more than 120 leading blockchain networks – a number that continues to grow, RocketX simplifies cross-chain transactions for almost every kind of trader. 

The Aggregator Advantage

RocketX claims that its platform provides significant advantages to crypto traders, helping to improve price discovery by identifying the exchange platforms where a single asset commands the highest buying price, or lowest selling price. It can even help to facilitate arbitrage trading, which is when traders buy an asset from one platform and sell it immediately via another venue to profit on the price difference. 

According to RocketX Chief Technology Officer Davinder Singh, crypto aggregators are well on their way towards becoming the future of digital asset trading. He points to the rise of aggregator platform in various other industries as an example of their efficiency. For instance, when booking a taxi these days, most people use an aggregator app such as Grab that finds the nearest available taxi, regardless of which taxi company is operating it. 

Aggregators are commonly used elsewhere too, for example when booking an airplane flight or a hotel, platforms such as Expdia, Kayak and Booking.com are favored by millions of travelers. The same is true for grocery shoppers, who increasingly use an aggregator when ordering products online. 

Besides helping traders find the best possible price, RocketX can also help them to better analyze the crypto markets, by scraping data from numerous platforms. This allows traders to get a clearer picture of the overall market for any single asset, as opposed to supply and demand on just one platform.