Blockchain and cryptocurrency have gained immense popularity over the years. Even people with no knowledge regarding investments are interested in cryptocurrencies and blockchain. People who know the centralized exchanges are the intermediaries between the seller and buyers. They make money through transaction fees and commissions. However, one of the major concerns for all cryptocurrency investors is how can they keep their money safe.
It is not astounding to say that most of them are paranoid about losing their cryptocurrency because of any thefts in the centralized exchange. There have been incidents in the past that have raised doubts about people when it comes to the security of decentralized assets. Previously, people across the world were using decentralized exchanges as there were not many options apart from the centralized exchanges. However, now things have changed as there are decentralized cryptocurrency exchanges and infrastructure.
Centralized vs Decentralized
Centralized exchanges are usually created and run by the company. One of the reasons people are not sure if their cryptocurrencies are safe in a centralized exchange is the transactions in the platform are overseen by the companies. Not only that the fees and rules for the exchanges are set by the company. Although cryptocurrencies are known for their decentralized nature, however, companies that have such control over an exchange can not be good for cryptocurrency in case of unforeseen situations.
Decentralised exchanges are automated programs that run the crypto trades, anyone be it a person or group can set up and oversee the development of these decentralized exchanges. Another thing about decentralized exchanges is that similar to de-fi apps, it is run by a network of computers. Simply put, no one has control over the platform after it is created. This is one of the reasons most people are interested in decentralized exchanges as no individual has any control over the crypto trades on the exchange. Compared to the centralized exchanges the decentralized exchanges will have a low transaction fee.
If you are wondering if there are any decentralised exchanges then stick till the end of this article. In this article, you will learn about 10 decentralised exchanges that you should know about.
GMX exchange is one of the decentralized exchanges that is gaining a lot of popularity among cryptocurrency traders. It is a trading platform where traders can have custody of their tokens. GMX exchange is deployed on the networks of Avalanche and Arbitrium.
As it is deployed on two networks it provides traders with a choice to trade from their preferred networks. The users can connect their wallets, earn, buy, and sell on this platform easily. The dashboard in the platform will provide the users with details like stats, GLP index composition, tokens, etc. The users can trade many cryptocurrencies with upto 50x leverage.
If you are involved and interested in cryptocurrencies then it is a given that you must have heard about Binance. It is currently one of the most popular exchanges in the world to trade cryptocurrency. This exchange has over 350+ cryptocurrencies listed and has a transaction fee of less than 0.01% (as per their website). The users can easily build their profiles and start trading. You can search for your desired coins, trade on them, and start earning good money.
Not only cryptos, but the Binance users can also dive into the world of NFTs and earn money through binanceNFT too. This exchange provides users with ultimate security through advanced data encryption and the users can also protect their accounts from falling into wrong hands by personalizing the access control of their accounts. Since they offer a desktop and mobile application, the users can trade from anywhere at any time.
This platform is growing in popularity as one of the growing networks for DeFi apps. Uniswap is a decentralized exchange that is providing an accessible and open marketplace for traders, developers, and liquidity providers. This platform is especially popular in the ethereum ecosystem. Since this platform is closely connected with the ethereum ecosystem many people are using this platform to launch their ethereum based projects.
The developers can develop Defi apps on this platform, and this exchange allows more than 300+ integrations and have a trading volume of over $1.3T+. The Uniswap protocol is managed by the community of delegates and UNI token holders. The users on this platform can also make passive income by becoming liquidity providers. Apart from paying in money sometimes they also pay in the form of UNI tokens.
If you are looking for a Decentralized exchange for Defi, then paraswap is one of the best exchanges available in the market. It is one of the leading decentralized exchange aggregators in the market as it aggregates multiple exchanges in a single place. The liquidity of the paraswap is also increasing because it has an in-house liquidity pool supporting it.
One of the best things about this platform is that it doesn’t charge any transaction fee for buying or selling tokens. The trader is only required to pay the network’s gas fee when the transaction is done through paraswap. In the era of the high transaction fee, these types of platforms will surely gain more attention from traders. However, if the user is using any third-party application to make a transaction then additional fees will be applied.
In a nutshell,
As you have made it to the end of this article, you would have known about decentralized exchanges. As you already know most people start their journey of crypto exchanges through centralized exchanges. However, after a given time people do realize that having customer support, although it makes buying and selling cryptocurrencies easy doesn’t mean that their crypto assets will be safe. If you are still interested in cryptos and protecting your crypto assets then you can check out the decentralized exchanges and choose the one that matches your requirements. If you are interested in more such articles about cryptocurrency and more then check out the zeen website.