The wide range of exchanges in the cryptocurrency market has always been impressive.Coinmarketcapmore than 260 exchanges are listed, and this does not countunregistered. This is a highly competitive industry in which the best players can make millions of dollars worth of profits. And yet, new players and new exchanges appear every day. What can they offer experienced traders? To answer this question, we need to understand what functionality a trader needs for comfortable trading.</p>
What do traders need?
Of course, each trader has his own individual needs, but, in general, they can be divided into three categories:
- Variety of assets;
When we talk about security, it meansthat tomorrow we hope to find our funds in the same place where we left them yesterday. Hacking and data leaks on cryptocurrency exchanges happen very often. In fact, even after many years of work to strengthen security, according to the CipherTrace report in 2018, hackers managed to steal about $ 927 million from cryptocurrency exchanges. In fact, according to another report from Ledger, 2018 was a record year for hacks - every day, in On average, $ 2.7 million is stolen from cryptocurrency exchanges. So, security here is an extremely important aspect.
Another important feature is the variety of tokens,available on the stock exchange. Traders like having a choice. Some trade tokens with little capitalization, and soon they become annoyed by the need to constantly switch between exchanges in order to exchange low-tokens that are already ready for the pump. In this case, it is more convenient to keep all the eggs in one basket.
And, the last is the simplicity of the userinterface. This is the first thing that is noticeable when visiting the exchange, and therefore plays a decisive role. With so many competitors, each exchange should offer a very thoughtful approach to interface development.
There are additional aspects, for example,some people want to replenish the deposit and withdraw funds in fiat, others need the support of trading bots or liquidity for large orders, and this list can be continued for a very long time. But, the main points are listed above.
Which exchanges can satisfy these requirements?
Decentralized Exchanges - Easier Than It Seems
In fact, decentralized exchanges (DEX)can be the perfect solution for any trader. DEX is very difficult to crack because it is as secure as the blockchain itself it runs on. And, unlike centralized exchanges, all the funds that are on the account of the trader belong to the trader. To steal them, you will need to decrypt the private key, but so far, such technologies are not officially known.
If a trader needs a large selection of tokens - DEXwill be the perfect place for this. Since it is decentralized, it is easier for companies to conduct operations with tokens. In many cases, there is no need to approve the transfer from the exchange, and therefore there is no centralized authority. In addition, on many DEX, for example, on IDAX, token listing is completely free - despite the fact that on centralized exchanges they require up to $ 2.5 million for listing.
But, many traders are hindered by the myth of complexity.work with decentralized exchanges. This opinion has been around since the time when the ancient DEX prototypes were really not “user friendly”. But, at present, many modern DEXs have appeared, the developers of which care about usability. At this point it is worth dwelling in more detail.
User-friendly decentralized trading
There are worthy exchanges that are worth noting, and each of which offers its own advantages.
IDEX is the oldest exchange on this list. She specializes in ERC-20 token trading (Ethereum). The exchange listing has 130 tokens. Daily turnover is about 300 BTC. The exchange is compatible with the MetaMask web extension or with hardware wallets such as LedgerNano.
The only thing required to start trading is the private key of the account. The exchange principle is simple - the interaction of the seller and the buyer through the blockchain, where the transaction takes place.
OpenLedger uses the same principle -a decentralized exchange running on BitShares with the Graphene blockchain, which makes it very fast. OpenLedger allows you to trade more than 50 cryptocurrencies, including BTC, ETH, NEO and DASH.
The exchange has an intuitive interface, and if you are already familiar with the basic principles of work, it will not be difficult for you to understand the features of trading on OpenLedger.
And the last, perhaps the most advanced, option is Volentix.not just a DEX, but an entire DAE, an ecosystem of digital assets.Therefore, in addition to exchange functions, it includes a multi-currency p2p wallet, a convenient toolEverything that is usually difficult for a trader to collect on his own is collected here.
So why do many consider VDEX Volentixa good choice among other decentralized exchanges? Firstly, it is built on the EOS blockchain, and works as fast as OpenLedger and faster than IDEX. Secondly, it offers a unique ecosystem in combination with everything that a cryptocurrency trader may need. Vespucci analytic tool contains all market data and news about many assets, which is designed to help users make better decisions. And thirdly, this is higher liquidity, because Volentix uses Bancor algorithms to provide it.
And, in spite of everything - when trading ondecentralized exchanges must carefully store the private key. If someone gets access to it, you are exposed to the same risks as when trading on any non-decentralized exchange.
Keep in mind that the DEX concept is still weak.It is familiar to many interested users and has not yet become truly popular. But at least decentralized exchanges have already taken the first step towards users, providing them with all the necessary tools and knowledge.
Since its inception, DEX has changed a lot. Now they offer the same features as centralized exchanges. They easily allow you to trade without preliminary settings, and all you need to know to get started is how to create a wallet. And, most importantly, along with a convenient interface that is identical to conventional trading terminals, you are given full control over your own funds. No need to send money to a deposit wallet, which is a relatively easy target for an experienced hacker.
One thing to take care of from a pointsecurity view of funds, this is about the security of the private key. If you do not know how to handle such things, then it is better not to try to trade on decentralized exchanges. But, remember that, experience with DEX can change your view on trading.</p>