Decentralized Exchange (DEX)

[Whited35 15285]

 

 

Dear guys, 
I have found, so many guys on this forum have confusions about Decentralized Exchanges (DEXes) platforms so I decided to create this topic to throw fuels to increase your knowledge about DeFi platform. so let's get started.

 

What is Decentralized Exchange (DEX)?
DeFi is a modern concept that has been widely discussed by cryptocurrency communities. Decentralized Exchange(DEX) is that type of cryptocurrency exchange that operates and functions without a central authority that allows users to have peer-to-peer trading of cryptocurrencies. Nowadays, DEXes are getting incredible reputations due to so many features to give full financial freedom to users. Some famous examples of DEXes are:- Binance DEX, IDEX, Bancor, Kyber Network, Uniswap, etc

 So here are some Pros and Cons of DEXes:-

 

Pros:-

• You have full control over your funds, private keys, wallets, etc on DEXes 
• DEX does not control your funds  so you can directly deal with buyers or sellers
• If you are against KYC requirements on the exchange then DEXes can be the best option for you. You will have an ability to transact without KYC verification
• On a Centralized Exchange (CEX), your funds can be tracked by the government for taxation purpose but in the case of DEX, it is really harder for the government to trace or freeze your holdings
• Fees are extremely low or no fee on DEXes. 

 

Cons:-

• There will be no KYC and if your private key is stolen by a hacker, there is no way to revert your funds.
• Newcomers might get confused while entering in DEX platform
• There will be no central support for you from DEX. Most of them prefer a community-based support system.
• Another problem on DEXes is low trading volumes

Note:-I have tried my best to write everything in simple language to make sure everyone can easily understand some basic information about DEX. If you have any problem, I am always open to listen to you 🙏. 

 

References:-

• https://en.wikipedia.org/wiki/Decentralized_exchange

Edited July 2, 2020 by Whited35
List arrangement

[Yomose 3704]

Decentralized exchanges are secure but not as common like centralized exchanges, also, they trade with high fee, but some people like them because they are maintaining high level of privacy. 

[Whited35 15285]

15 minutes ago, Yomose said:

Decentralized exchanges are secure but not as common like centralized exchanges, also, they trade with high fee, but some people like them because they are maintaining high level of privacy. 

@Yomose Most of DEX exchange does not charge you high fee in a comparison with centralized exchange (CEX). DEX allows us to have P2P trading of cryptocurrencies so users are themselves responsible for their trading activities on the platform. 

[BTC Future 3946]

As a DEX it has only ERC20 and Ethereum I presume. The ethereum DEX's are coming back to life lately with the DeFi hype. I've heard of DEX a few days ago and I will try and spend some time with it. Basically @Yomose might be right, I remember DDEX was charging way too much and you had to pay fees to open some contract to trade on every token you wanted. I don't understand why this was needed. In Ether/Forkdelta there were no such options.

[Honny143 13612]

Dear friend You think you explain basic information about DeFi exchange, but its really useful for me because I don't use this defi exchange,I am also do some research I found present this defi exchange doing well and most of members join this exchange because don't need to do kyc.

[Whited35 15285]

12 minutes ago, Honny143 said:

Dear friend You think you explain basic information about DeFi exchange, but its really useful for me because I don't use this defi exchange,I am also do some research I found present this defi exchange doing well and most of members join this exchange because don't need to do kyc.

 @Honny143 If you have not used any sort of DEX yet and want to grow knowledge about DeFi, do not get worried. This topic is for you and I am trying to create some more topics about DeFi too. As I have to perform research before  creating any posts on this forum, wait for sometimes 😊

[Honny143 13612]

5 hours ago, Whited35 said:

 @Honny143 If you have not used any sort of DEX yet and want to grow knowledge about DeFi, do not get worried. This topic is for you and I am trying to create some more topics about DeFi too. As I have to perform research before  creating any posts on this forum, wait for sometimes 😊

Thanks mate to reply my post and I really happy you post more topics in this issue means defi exchange topic to know very well, I heard in YouTube now defi exchange more profitable but exactly I don't no how, so its really great from me when you post more topics and its helpful so many members like me.

[gourav789 2834]

I Also likes dex exchange because privacy is happening higher as compare to centralised exchange , mostly time I also used dex exchanges .

trading fees is on average base there as well security is really great on such exchanges .

[Whited35 15285]

3 hours ago, gourav789 said:

I Also likes dex exchange because privacy is happening higher as compare to centralised exchange , mostly time I also used dex exchanges .

trading fees is on average base there as well security is really great on such exchanges .

@gourav789 On DEX, you have full control over your funds, wallets, and trading activities. I assumed you are also aware of cons of DEX exchange. Decentralized platforms are garbing more attentions of traders now. 

 

Edited July 9, 2020 by Whited35

[DiamondBit 720]

7 hours ago, Whited35 said:

@gourav789 On DEX, you have full control over your funds, wallets, and trading activities. I assumed you are also aware of cons of DEX exchange. Decentralized platforms are garbing more attentions of traders now. 

 

Transaction fees on Dex exchange does not make any sense, the fee is too much, about the trading aspect, custodian exchanges like yobit are better. But for the security, it is the most secured. I like the exchanges but I prefer custodial because of low trading fee. 

[Whited35 15285]

7 hours ago, DiamondBit said:

Transaction fees on Dex exchange does not make any sense, the fee is too much, about the trading aspect, custodian exchanges like yobit are better. But for the security, it is the most secured. I like the exchanges but I prefer custodial because of low trading fee. 

Friend, what do you mean to say here ? Why transaction fees on DEX does not make the sense? Well, it is your choice to choose one from DEX and CEX exchange. I am not recommending you to choose one of them. I have just tried to figure out Pros and Cons of DEX, that's it 😊

[Yomose 3704]

On 7/6/2020 at 4:53 PM, BTC Future said:

As a DEX it has only ERC20 and Ethereum I presume

There are many exchange that also make exchanging of normal other cryptocurrencies  possible. A good example is changelly. 

On 7/10/2020 at 3:31 AM, Whited35 said:

Friend, what do you mean to say here ? Why transaction fees on DEX does not make the sense? Well, it is your choice to choose one from DEX and CEX exchange. I am not recommending you to choose one of them. I have just tried to figure out Pros and Cons of DEX, that's it 😊

Maybe you can recommend me a wallet with good exchange, @DiamondBit also commenting the way I did, but you could be right, I have used coinomi with changelly dex exchange and the fee is too high unlike normal trading platform charging as low as 0.2% to 0.007% that o have experienced before. 

[BitcryptoHan 2557]

On 7/11/2020 at 9:52 AM, Yomose said:

There are many exchange that also make exchanging of normal other cryptocurrencies  possible. A good example is changelly. 

Maybe you can recommend me a wallet with good exchange, @DiamondBit also commenting the way I did, but you could be right, I have used coinomi with changelly dex exchange and the fee is too high unlike normal trading platform charging as low as 0.2% to 0.007% that o have experienced before. 

Decentralized exchanges are good, they have their own apps or acting as a third party on noncustodial wallets, their transactions fee is often high unless the blockchain is not congested. 

[DiamondBit 720]

2 hours ago, BitcryptoHan said:

Decentralized exchanges are good, they have their own apps or acting as a third party on noncustodial wallets, their transactions fee is often high unless the blockchain is not congested. 

You are right about Dex exchanges, a good example is changelly right? I use coinomi and I use changelly on it with to exchange from one coin to another, but the fee is high like you said, not good for trading at all. 

[BitcryptoHan 2557]

On 7/12/2020 at 4:20 PM, DiamondBit said:

You are right about Dex exchanges, a good example is changelly right? I use coinomi and I use changelly on it with to exchange from one coin to another, but the fee is high like you said, not good for trading at all. 

I will not advise you to use changelly, if you use their app, very possible they may demand for KYC but I just still heard about this not yet confirmed. But using it in wallets is decentralized for now but the policy may change just like shapshift. 

[bitcoin-shark 1928]

the dexes are a valid alternative to traditional exchanges and they are my favorites as well as not requiring kyc verification you can trade with practically any token by adding them manually starting from the smart contract

[Whited35 15285]

11 hours ago, bitcoin-shark said:

the dexes are a valid alternative to traditional exchanges and they are my favorites as well as not requiring kyc verification you can trade with practically any token by adding them manually starting from the smart contract

@bitcoin-sharkWhich is your favorite DEX , dude? Do you have any remarkable experience on any DEX platform to make the passive incomes? In your real life, which one you prefer the most DEX or CEX platforms for cryptocurrency exchange ?

[bitcoin-shark 1928]

my favorite dex and forkdelta where I managed to sell tokens that were not listed on any other traditional exchange and to arbitrate between binance and forkdelta that had different prices for the same token, passive income I can do with the defi sites as a compound , aave or make liquidity available on uniswap obviously you need a capital to start with, I have no preferences I use both the dex and the cex

[Yomose 3704]

On 7/17/2020 at 7:50 AM, Whited35 said:

@bitcoin-sharkWhich is your favorite DEX , dude? Do you have any remarkable experience on any DEX platform to make the passive incomes? In your real life, which one you prefer the most DEX or CEX platforms for cryptocurrency exchange ?

Incan five you three, the the exchanges I am given do not just require kyc, you will really like them. Bisq, hodl hodl and komodo. Yoj can try any of the three, they are one of the best. I will not recommend changelly as they are not fully decentralized. 

[TheRaed 1247]

I always heard about this platform, but I never dared to use it anymore, so I have now seen it and actually found the fees for withdrawing currencies or trading are very few compared to others
Very useful topic, thank you my friend

[Whited35 15285]

6 hours ago, Yomose said:

Incan five you three, the the exchanges I am given do not just require kyc, you will really like them.

@Yomose what does it "Incan five you three" mean ? Well, I am familiar with Bisq but rest of them seem quite strange to me. I have been using Forkdelta , Uniswap, McAfee DEX (in previous) and still looking for the best one to have passive incomes. 

[DiamondBit 720]

On 7/11/2020 at 9:52 AM, Yomose said:

There are many exchange that also make exchanging of normal other cryptocurrencies  possible. A good example is changelly. 

Maybe you can recommend me a wallet with good exchange, @DiamondBit also commenting the way I did, but you could be right, I have used coinomi with changelly dex exchange and the fee is too high unlike normal trading platform charging as low as 0.2% to 0.007% that o have experienced before. 

All wallet with Dex could charge you higher but there are better good Dex exchange like bisq. Changelly is not 100% Dex, my friend has been forced to provide kyc before after they seize his bitcoin. Binance Dex is also not 100% Dex. 

[Yomose 3704]

12 hours ago, DiamondBit said:

All wallet with Dex could charge you higher but there are better good Dex exchange like bisq. Changelly is not 100% Dex, my friend has been forced to provide kyc before after they seize his bitcoin. Binance Dex is also not 100% Dex. 

You are not wrong but what I have noticed is the increase in transactions of decentralized exchanges, although, I have not tried bisq before and I may try it but I prefer centralized ones like yobit. 

[estee369 489]

DEX is getting more popular day by day. There are over 200 DEX is currently operating in the markets and there are a lot of them still coming. I think the reason behind this peoples dex attraction is the hacking activity in CEX exchange in last few years. DEX provides the best security because user has the control over their funds.

[malik6314193 5449]

No doubt now decentralized exchanges are getting more popularity then centralized exchange. It is because decentralized exchanges are not controlled by anyone and their is less chance of hacking. Binance dex is my favorite decentralized exchange.