Make sure your DEX has these
What is a DEX (Decentralized Exchange)?
In the simplest terms, a decentralized exchange is decentralized.
What that means is there is no hierarchical system that owns and or manages the exchange.
Where traditional centralised exchanges require signing up, verifying, depositing and withdrawing cryptocurrency all whilst a third party is storing your data and potentially charging you fees, a decentralized exchange empowers users to trade directly between each other, without interfering as a middleman.
There are some drawbacks to this, but as time passes DEXs are quickly catching up in terms of popularity, volume and liquidity and because they are closer to the ideals of cryptocurrency, the blockchain and the new Defi (decentralized finance) movement, many people prefer them.
They’re especially relevant for new tokens that hope one day to become cryptocurrency coins of their own.
What should I look for when about to use a DEX?
Bearing in mind that Decentralised exchanges are built in radically different ways by radically different people, there are some themes that they should all have in common, and we want to point those out to you today to protect your safety online.
- Whether there’s a KYC process or not — many DEXs will voluntarily create a process that complies with the Know Your Customer regulation even though they don’t actually have to. This is for your benefit as it protects your privacy.
- An exchange protocol — this should be peer to peer
- An order book database that you can review
- A solid user experience and graphical user interface that is easy to use
- APIs for additional functionality
- Anonymity — true to the ideals of cryptocurrency, you should be able to use the DEX completely anonymously.
- It’s own token — many DEXs are built to facilitate the trading and sale of their own currencies, so watch out for this.
- A roadmap — this should be published and be in date, with a clear outline of what to expect
- Optional nice to have: a whitepaper explaining why the dex was set up and how it is different.
- Optional nice to have: mobile apps
What is unique about the GWallet decentralized exchange?
Our new Decentralized Exchange is unique for a number of reasons we will outline below:
Dedicated AI Tracker helps you find the best deal in the SDEX
Stellar Protocol offers support for multiple currencies
Zakat feature for those who like to give
Our unique LEVELG “battery” token
We hope you have enjoyed learning about decentralized exchanges with us today.
Gwallet.tech is a new Stellar Blockchain-based hybrid wallet with decentralised and peer-to-peer exchange soon to launch on Apple and Android.