Before we focus on decentralize exchanges’ advantages, I think we need to know a little bit about what is decentralize exchange. Also, we need to know why is decentralize is the core reason to create a digital currency. Here we are going to execute about Decentralized Exchange advantage.
The creation behind Bitcoin is decentralizing. For example, banks control money by centralization and have them control money by the authority. This central authority regulated all the banks and centralize all the banking community activities.
Here cryptocurrency comes to decentralize the 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. Users can place assert orders and trade cryptocurrency without any other third-party controller who manages clients’ funds. To trade digital currency with each other no need for any intermediaries. So Dex is a way to trade crypto assets 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 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 Kraken. Though those are centralized 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 trustless technology, decentralize the system, you have to trust an authority.
DEXs seeking to change this system and give the user full control fund. The ecosystem allows users to trade with each other directly on the blockchain. All the Dex has no fiat gateway, but many of them have decentralized exchanges that allow Crypto to Crypto trade. So in this comprehensive guide, we will explain the details about Dex’s advantage.
Decentralized Exchange advantage or Dex benefits
A centralized exchange is not popular and trusted for its insecurity. More than $4 billion worth of digital currency is stolen from different exchanges from 2011 to 2018 according to a
That’s why decentralize exchange comes to solve all of the mention issues. DEX was created in 2017 and the beta version was released at the beginning of 2018. So Decentralized Exchange advantages are below.
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 anonymity.
2. No KYC Require
It is true that centralize exchanges offer a number of advantages to trading 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 trackback traders.
3. Security Advantage
As there have no need to deposit and withdraw. As per Ehterium smart contract and 0x protocol Dex allows 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 withdraw 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 advantages.
This is not for all the DEX deposit / withdraw process, there have some exchanges where need users to deposit through smart contracts. In the same way, withdrawal requires with a smart contract.
5. Control of Funds
DEX is ordinary and non-custodial that’s why all the users fully control their fund as a full transfer process until the exchange is 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 save your fund with your own content and responsible for decentralizing exchange.
6. Hacks Issue
DEX existing across a network of computers, it is very difficult to hack or attack user funds or data. There is no chance for entry and exponentially much security. 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. The rollout of updates happens 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 dexes are 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 are 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 traders from this country 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 is no need for any identity verification.
10. Faster transactions
As a decentralized exchange, it avoids all the third parties involved that way the transaction speed is faster. Moreover, users do not need to pay fees for the transaction. This featured crypto trader interested to trade on the DEX platform.
Finally, cryptocurrency is a revolution and it is standing on for its decentralization featured. You should not put your valuable crypto assert to another, centralize exchange or wallets. Here are the top 10 decentralized exchanges.
If you are a digital currency trader then you might trade with decentralizing exchange to get full control of your fund. Now many decentralized exchanges 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.