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The Rise Of Decentralized Cryptocurrency Exchanges
The cryptocurrency exchanges are platforms that provide the facilities for cryptocurrencies trading for the fellow cryptocurrencies, digital, and fiat currencies.
The exchange itself can be categorized as the brokerage between the buyer and seller. There are many crypto exchanges that we can find on the net. They make money through transaction fees and commissions.
With the increasing trends of cryptocurrency investment, many groups have been turning to decentralized exchange development opportunities.
The exchange itself has two main types: centralized and decentralized.
In the centralized exchange platform, the exchange works as the brokerage or third party to intermediate the buyer and seller. Most of the crypto transactions in the world are accommodated by centralized crypto exchanges.
Meanwhile, a decentralized platform facilitate the users to transact peer-to-peer. This activity does not include the third party or broker to transact.
The decentralized exchange development has been rising in popularity because these platforms come with perks that eliminate the downsides in the centralized exchanges’ websites. The centralized exchanges’ downsides revolve around cybersecurity attacks, transaction fees (expensive), availability of fiat currencies, etc.
There are many reasons why groups and organizations could take a look at decentralized cryptocurrency exchanges.
Reduce the cyber attack risks
As mentioned, the decentralized exchange development eliminates the need for the third party to intermediate the transactions.
So, the assets you sell or buy will not be transferred to any other party but your sender or recipient.
The peer-to-peer transaction does not affect the fees. The transaction will also be more seamless since the intermediaries procure no corresponding workload.
Protecting users from the market frauds
We have heard many stories about fake transactions, fake trading, reversed transactions, etc. Third-party intervention is the main reason for market manipulation. Peer-to-peer exchange will prevent market fraud.
Users will be protected from fake transactions and other malicious intents.
The availability of the exchanges
Although decentralized exchanges are relatively new in the world of cryptocurrencies, we can easily find some popular exchanges. Some of the trustworthy and reputable services are Tokens On, Venus, Compound, BurgerSwap, 1inch Exchange, etc.
Simple and straightforward transactions
In the centralized exchanges, you need to pay fees for the brokerage services. These intermediaries claim themselves as the legal or official representatives. Some of the parties are often tied with the conventional financial institution. These environments enforce all the users to pay for every activity, including selling, purchasing, funding, withdrawing, converting, and other types of transactions. Not to mention that you need to deal with the paperwork, commission, verification process, and so on. This lengthy process will only delay your core activities.
When the users use the decentralized exchange, there will be no brokerage. That means the transaction will take place one to one in the private and secure network.
The transparency of the information is also a top-notch fact here. As the users of the exchange, one can establish the responsible audit trails. Both sellers and buyers will know each other.
The order books are totally transparent. That means you can view each market’s insight that relates to the assets you are following through. You will know how the market will go and what will happen if you conduct the specific order.
The privilege in decentralized exchanges
The transactions remain confidential so that the third parties won’t be able to tamper with them. We know that the records are visible to the banks or other legal representatives in the centralized system. When the users conduct the transactions, the third party will record them.
While using the decentralized exchange development, every transaction will be distinct. You will have 100% control of how you are willing to share the disclosed information. The financial records will remain in the privacy corridors. No one will be able to intrude on your personal space. The users won’t need to worry about protecting their real identity.
Stronger and ampler security
The reliable smart contracts will protect everyone from getting tampered.
As the users conduct the transaction, they can’t reverse it. Smart contracts protect both buyers and sellers in decentralized exchanges. These smart contracts protect them when they are transacting so that the third parties won’t intervene with it.
Available around the clock
The decentralized crypto exchanges are just like the centralized ones. They are available 24/7 across the globe. No matter where you are or when you are transacting, you can do it right from your favorite places.
With such availability, it has been a more popular solution for retail investors and individuals who want to trade and transact on a daily basis.
The conventional market has the problem with its “market hours. In most cases, you won’t be able to buy or sell the crypto whenever you want in the conventional market. Some pre-market and post-markets are also available but not for the retail investors.
The market hours have been dictating people to trade in the shaft. But with the decentralized exchanges, wider opportunities open for folks who want to do it without being obliged to the market hours demands.
Those who have pre and post-access to the market have overwhelming advantages. But there will be no exclusive treats anymore.
Quick selling and buying
With the absence of intermediaries, you can accelerate all of the transaction processes. As we know, third-party interruptions can slow down the exchange activities.
In the decentralized environment, the transactions will be done as quickly as the blockchain can give. With just a single tap of a button, the crypto investors can quickly sell to make a profit or buy when the prices are lower. There will be no delay because of the brokerage. You can reserve your profits the moment you hit the button.
All users will be free from the lengthy process.
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