Ready to take a wild ride with a unique altcoin? 1inch Network (CCC:1iNCH-USD) is the name of both a decentralized exchange (DEX) aggregator and its native cryptocurrency, so today we’ll see if 1inch is appropriate for your crypto portfolio.

This is a token that has whipsawed its investors with sharp moves in both directions. Therefore, please don’t go overboard with your position size.

With that in mind, it’s fascinating to consider how the 1inch decentralized app. or dApp, might transform crypto trading as we know it. At the same time, the token’s price could move much higher.

DApps are like normal apps, and offer similar functions, but the main difference is they run on a peer-to-peer network, such as a blockchain.

So, prepare to scale up with an advanced concept and a still-cheap digital asset for risk-tolerant crypto enthusiasts. It’s a zero-or-hero investment, to be sure, but sometimes these YOLO trades can be major moneymakers.

Analyzing the 1inch Price

It’s been quite a roller-coaster ride for the 1inch coin in 2021, so far.

It went as high as $7.50 in May, but the main resistance level has been $6.

In fact, 1inch touched $6 in February, May and October. However, each time, the sellers brought the price back down.

There seems to be some support at $2.50. So, if the price gets down to that level, you might choose to make a small purchase.

The 1inch token was trading near $4.40 in early November, which is near the middle of its year-long range.

Short-term traders may prefer to wait for the price to decline to $3 or $2.50 before taking a position.

Meanwhile, long-term investors can start buying the token if they’re envisioning a 2x or 3x gain down the road, which is entirely possible with this fast-moving crypto.

Changing How Trades Are Made

For this section, I’m discussing 1inch as a dApp (decentralized application) and an exchange, not as a cryptocurrency.

As I alluded to earlier, 1inch is a DEX aggregator. As such, it sources liquidity from various exchanges.

That’s really just a fancy way of saying that it searches the crypto market and attempts to get 1inch’s users the best possible executions and lowest fees for their trades.

The platform is even capable of splitting a single trade transaction across multiple DEXes in order to ensure the best rates.

Moreover, due to secure smart-contract technology, a user’s funds “can’t be lost even in case of interaction with an unsafe liquidity source.”

Along with enhanced security, speed is also emphasized.

Within less than a second, Pathfinder, 1inch’s aggregation information service, finds the best trading paths for its users across multiple markets.

Besides, it’s very easy to use. You can just go to the dApp’s launch page, connect your cryptocurrency wallet and start trading.

Gradually Unlocking the Tokens

Now, let’s discuss 1inch as a token rather than as a dApp.

1inch is a multi-chain token intended to be used in the tokenomics of all new protocols released by the 1inch Network.

It also allows the 1inch stakers to vote for and receive rewards. So, it’s an essential part of the network.

The token has a circulation supply of 181 million, a total supply of 1.5 billion and more than 137,000 holders.

For investors concerned about over-issuance, it’s reassuring to know that the token’s supply is carefully controlled.

“On the release day, 6% of the 1INCH token’s total issuance of 1.5 bln was unlocked. The remaining tokens will be gradually unlocked over a four-year period through December 30, 2024,” is the stated issuance time frame.

If you’re wondering where all of those tokens are going, 30% of the total supply will go to community incentive programs.

Another 14.5% will be allocated towards a “growth and development fund,” which will be used to issue grants and to incentivize developers to build on 1inch protocols.

Finally, the remaining 1inch tokens will go to the project’s backers and core contributors.

The Bottom Line

It’s encouraging to see that the 1inch project is transparent about how the tokens will be distributed.

At the same time, the 1inch DEX aggregator could prove to be a transformative force in the world of cryptocurrency trading.

So, feel free to check out the 1inch platform and perhaps even purchase a few tokens. It’s a risky but interesting wager on what might be the future of tokenization.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.