The cryptocurrency exchange facilitates the trading of digital assets. The exchange can be centralized or decentralized. Each has different functions and investors choose the one that they are more comfortable in using the platform. Centralized exchanges act as custodians and they work on behalf of you to store and protect the private keys. On the other hand, decentralized finance is emerging and they looking to be the best alternative for centralized finance.
The decentralized crypto exchanges have emerged as the best alternative to the centralized exchange platforms. Now, many crypto investors are choosing DEX because of its huge advantages. Here are a few advantages that one can enjoy by using the DEX platforms.
Decentralized is non-custodial, unlike centralized crypto exchanges. They do not ask for any private keys to conduct their transactions. The traders could easily self-execute the transactions through smart contracts and the wallets directly interact with the decentralized exchange. So, you do not have to depend on third-party services. Also, they are completely safe to use. The platform provides an automated way for the users and they could easily engage themselves in smart contracts.
When you use a centralized exchange, all your transactions are monitored and stored by the central authority. In this case, the hacking is possible. But through smart contracts, you will not find this problem. Decentralized exchanges enable trustless transactions by executing and storing trades on a blockchain. Your funds are not stored in DEX and so there is no chance for hacking.
The decentralized crypto exchanges work on self-executing smart contracts to eliminate the additional fees. So, the fees are comparatively low to the centralized exchanges. Also, some of the best crypto exchanges like ADAX do not have platform charges making it much lower compared to the other exchange platforms.
Using decentralized exchange means you could enjoy anonymity. You do not have to disclose any of your private information and keys. This is one of the main reason that many prefers to use DEX over the centralized exchange.
Hence, decentralized exchanges are considered to be the future because of their numerous advantages. Since, the decentralized platforms are working to improve their scaling mechanisms, user experience, and other features many financial institutions will adopt this platform in the future. The amazing features of DEX, making it the best alternative to centralized exchange platforms.