Before we focus decentralize exchanges advantages, I think we need to know a little bit about what is decentralize exchange. Also, we need to know why is the decentralize is core reason to create digital currency. Here we are going to execute about Decentralized Exchange advantage.
The creation behind of Bitcoin is decentralizing. For example bank control money by centralization and have them to control money by the authority. This central authority regulated all the banks and centralize all the banking community activities.
Here cryptocurrency come to decentralize power of central authority.
What is decentralize exchange?
DEX is a new peer to peer trading concept that is no need to put your fund on the third party authority. User can place assert order and trade cryptocurrency without any other third party controller who manage clients’ fund. To trade digital currency each another no need any intermediaries. So Dex is a way to trade crypto assert without any media. This exchange gives you full control of your money and higher security.
Blockchain technology gives the two parties to trust each other with an amazing technology concept. To enter in this crypto ecosystem you need to buy some cryptocurrency with fiat money like (USD, EURs). Generally, to do this you might use top exchange Coinbase or Keraken. Though those are centralize exchanges.
So, they get your details information, handling your accounts and slow down or outright attacks possibility. To use, centralize exchange is a dependency experience. In order to enter a trust less technology, decentralize system, you have to trust an authority.
DEXs seeking to change this system and give the user full control fund. The ecosystem allows user to trade each other directly on the block chain. All the Dex has no fiat gateway, but many of them have decentralize exchanges who allow Crypto to Crypto trade. So in this comprehensive guide we will explain the details about Dex advantage.
Decentralized Exchange advantage or Dex benefits
Centralize exchange is not popular and trusted for it insecurity. More than $4 billion worth of digital currency are stolen from different exchanges in 2011 to 2018 according to a
That’s why decentralize exchange come to solve all of the mention issues. DEX was created in 2017 and beta version released in the beginning of 2018. So Decentralized Exchange advantage are bellow.
1. Use Anonymity
One of the basic DEX is no need to sign up proceeds to selling assert. Since starting it is a DApp running on the Ethereum blockchain. All the user can hide their identity. This system matches with MetaMask and Brave with the anonymity.
2. No KYC Require
It is true that centralize exchanges offer a number of advantages to trade cryptocurrency. But a number of clients do not interested to provide KYC information that’s why they like decentralize exchanges. DEX does not require any type of personal information that track back traders.
3. Security Advantage
As there have no need to deposit and withdrawal. As per Ehterium smart contract and 0x protocol Dex allow clients to trade assert directly user wallet to another wallet. In this way you can handle freely to your assert.
It is really a revolutionary ecosystem with ledger without leaving your assert storage. It is risk free of being hacked because the central server doesn’t hold any asset. One the other hand, centralize exchanges regulated user fund most of the cases.
4. No Fiat Deposit And Withdraw
You have also no need to deposit or withdrawal process. Moreover, there is no associate fees implemented here. Another benefit is also there is no waiting time to refund. It is one of the important decentralized exchange advantage.
This is not for all the DEX deposit / withdraw process, there have some exchange where need user to deposit through smart contract. In the same way withdrawal require with smart contract.
5. Control of Funds
DEX is ordinary and non-custodial that’s why all the users fully control there fund as a full transfer process until exchange finished. It is the most important decentralized exchange advantage.
When a smart contract happened to the single trade. No more “funds are safe” messages. It is a way to safe your fund with your own content and responsible with decentralize exchange.
6. Hacks Issue
DEX existing across a network of computers, it is very difficult to hacked or attack user fund or data. There is no chance for entry and exponentially much secure. It is designed with complicated and tested securely that’s the way it slow to data.
7. As Decentralized Exchange advantage Downtime
There is no record of failure in distributed exchange that’s why it is less possible to going down. Rollout of updates happen on a node-by-node basis. If any single node going to down for updating or attack, another node running the exchange network.
8. Decentralized Servers
A number of DEX hosted on the decentralized server. It indicates those servers are not located in one place because randomly spread all around the world. Many of them hosted solely on the cloud server. This system makes harder to attack or hacked and secure user fund.
9. Not Restricted by Law
It is really good for trader from this country’s where cryptocurrency is illegal. Decentralize exchanges are almost impossible to shut down or regulate from any physical location. Any specific area or location can not be restricted by any law. Because there no need any identity verification.
10. Faster transactions
As a decentralize exchange it’s avoid all the third parties involve that way the transaction speed is faster. Moreover, user not need to pay fees for the transaction. For this featured crypto trader interested to trade on DEX platform.
Finally, cryptocurrency is a revolution and it is standing on for its decentralization featured. You should not to put your valuable crypto assert to another, centralize exchange or wallets. Here are top 10 decentralized exchanges.
If you are a digital currency trader then you might trade with decentralize exchange to get full control of your fund.. Now many decentralize exchange are of offer trading with various facilities. Such as user friendly interface, high liquidity, top level security and two step authenticates process and so on. To start trading with Dex, check the Best Decentralize Exchange.