What Do You Benefit from Decentralized Exchange?
What do you benefit from a decentralized exchange? People often use platforms beneficial to their daily crypto business to avoid wasting time and resources.
There are many platforms where you will not need to upload your government ID to verify your identity before you can proceed with trading one crypto for another.
Decentralized exchange platforms have many benefits that will help you achieve a hassle-free transaction.
Here we will put the spotlight on decentralized exchange and its benefits.
What is Decentralized Exchange?
Decentralized exchange (DEX) is a peer-to-peer marketplace where you trade cryptocurrencies directly without a middle person.
These transactions are made possible through agreements that execute automatically through written codes called smart contracts.
This type of exchange was created to remove the necessity of authorizing transactions within a specific exchange.
You have direct access to a buyer if you are a seller and vice versa. Unlike centralized exchange platforms, decentralized exchange platforms do not ask for your vital information for account verification.
What Do You Benefit from Decentralized Exchange?
Here are some benefits of decentralized exchange platforms:
I). Complete Control
DEX allows its users to retain complete control over their funds. They decide whether to cancel the swap or not.
II). Maximum Security
While using DEX, there is no need to be afraid of hackers or losing your money to fraudsters. This is because the whole transaction process is encrypted.
III). High Privacy
DEX will not ask you to provide your identity documents. This gives you that high privacy as the other party does not know your identity.
IV). Resistance to Censorship
Decentralized exchanges often operate on the blockchain network which is not subject to detection.
V). Worldwide Access
You can access decentralized exchange from your smart devices anywhere in the world. All you need is a good internet connection.
Now that you have learned about the benefits of using decentralized exchanges, it is also necessary to explore some of their disadvantages.
What are the Disadvantages of Decentralized Exchanges?
Here are some of the disadvantages of using decentralized exchanges:
I). Low Liquidity
Most DEX platforms have low liquidity. This sometimes results in high slippage and unfavorable market conditions.
II). Potential Poor User-Experience
You will agree that DEX platforms are highly technical, making them almost difficult for most internet users to navigate.
III). Limited Pairs
You might not find all the crypto pairs in one decentralized exchange platform as they have a limited number of trading pairs.
List of Recommended Decentralized Exchange Platforms
There are many decentralized exchange platforms in the crypto space but I will only recommend a few.
However, if you have other reliable DEX platforms that you would like to share here, you can do that in the comment section.
Here is my list of recommended DEX platforms:
That is all I can recommend for now. I hope you have learned about the benefits of using decentralized platforms and also their disadvantages.
This will guide your decisions as to where to trade your crypto tokens.
Thank you for your time. Remember to react and give your contribution with your comments.
