Decentralized Exchanges (DEX)

DEX is a decentralized platform that operates on the basis of a distributed registry, does not store funds and personal data of users within its servers and acts only as a platform for searching for matches on applications for the purchase or sale of user assets.

At such platforms, trading occurs directly between participants (peer-to-peer) without any financial intermediaries.

Advantages of DEX:

✅Anonymity while the exchange
✅Currency owner is the one to has private keys
✅The ability to quickly add coins for exchange
✅Lack of KYC (identity verification)
✅No one can block your account
✅A decentralized exchange does not have managers interested in price manipulations within the exchange

Disadvantages:

❌Limited set of functions
❌The liquidity is lower than on centralized exchanges
❌Complicated for beginners in comparison with centralized exchanges
❌You can’t have fiat currencies
❌No support service
❌ Since many decentralized exchanges are managed by Smart Contracts, cryptocurrencies that do not support interaction with smart contracts cannot be traded at them.

🔐 Decentralized exchanges are much more reliable and safer than centralized ones but they are more suitable for experienced users who are ready to take full responsibility for their actions themselves without the opportunity to contact the support service and demand a refund.

Most of the disadvantages of DEX are gradually being eliminated, simple user interfaces are being developed and the liquidity of decentralized exchanges is increasing.

By the way, DEL coins will soon appear on two decentralized exchanges — QuickSwap and PancakeSwap.

--

--

--

Decimal helps communities to issue and manage blockchain assets.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Strategic Partnership : Duckie Land x Webcoin Capital

(XRP) Ripple Potential

The Changing Dynamics of Cryptos

XT, Classic, BU: Escaping the Cycle of Hardfork Contention (with Trustless Governance)

Waves Reward Token airdropped to WCT holders

Current Affairs of Cryptocurrency and Fiat Markets

Books I read about Unity and the good of the pips.

Gennix Defi

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
DecimalChain

DecimalChain

Decimal helps communities to issue and manage blockchain assets.

More from Medium

How to migrate any Ethereum token to XinFin Network in less than 10 minutes — REPHRASE

Why Internet Computer (ICP) is Gaining Ground

Community Call #9 Recap

Solana & Reddit bullish on Web3 Social, Kucoin Lists Only1, What’s next?