NIX-E

Decentralized crypto exchanges (DEX) function in decentralized ways, without the involvement of a third party. Users can utilize these exchanges to conduct P2P transactions. This process is purely based on smart contracts. One thing that should be taken into account is DEX does not come with the same framework. Some of the leading DEXs are Uniswap, Tokenlon, Venus, and 0x Protocol.

• Uniswap – It is a platform that can swap your Ethereum and Ether which is based on cryptocurrencies.

• Tokenlon – This platform is created and depends on the 0x protocol that is utilized to perform an atomic token-to-token exchange.

• 0x Protocol – This open protocol allows the direct exchange of some assets on the Ethereum decentralized blockchain platform. 

• Venus – Based on the algorithm, this money market method was developed with the aim of providing Binance SmartChain with a fully decentralized financial-based credit as well as a credit system. Venus allows users to leverage digital currencies by providing securities to their networks. 

Now let’s look at the advantages of using decentralized cryptocurrency exchanges

Eliminates the Risk of Hacking – As decentralized exchanges do not require users to swap their digital assets with an intermediary, there will be no risk of being hacked. Users are also guaranteed increased security against hacking and theft.

Avoids Market Manipulation – DEX allows P2P cryptocurrency exchanges. This in turn help avoids market manipulation, thereby safeguarding users from trading with fake money and wash trading.

Offers Anonymity to Users – With these exchanges, you do not have to fill out know-your-customer (KYC) forms. This provides more privacy to users and also allows them to stay anonymous.

Make Sure to Trade All Tokens – DEX allows users to trade new and ambiguous cryptocurrencies, that were very complicated to trade elsewhere earlier, either on a DEX or a DApp (decentralized application). But still, there are trading bots like bitcoin prime that lets users trade almost every cryptocurrency. The bitcoin prime coincierge.de site clearly defines how cryptocurrency can be traded automatically with a high potential win rate. In fact, centralized exchanges typically support only about 12 projects, most of which only support the topmost cryptocurrencies. This makes it very difficult to exchange smaller or least popular tokens. This is particularly due to centralized cryptocurrency exchanges restriction of users from other countries.

Manage your Money – You have complete control over your portfolio and funds. Decentralized cryptocurrency exchanges will never demand you to move funds to a portfolio or trading account to make a transaction. Finally, having a digital wallet similar to centralized exchange platforms will increase the chance of risk.

Cost-effective – Decentralized cryptographic exchanges operate on the automation and self-regulation rules. This makes it comparatively cost-effective. Moreover, these exchanges will help minimize additional expenses.

 Conclusion 

DEXs are a natural fit and have enormous possibilities. It is a reliable solution that allows users to buy and sell digital currencies without moving their digital assets to an intermediary. Complete decentralization is not yet feasible, but various kinds of DEX offer different levels of safety, confidentiality, and efficiency for investors. Many investors are now interested in web 3 crypto projects as they are gaining wide popularity worldwide. Web 3 is considered to be the future of the internet and incorporates many modern features. As the DEX goes on evolving and becoming more convenient for users, user acceptance will become a centre of attention as DEX seeks to draw liquidity from other exchanges.