Why are decentralized exchanges gaining popularity, and which one might be more suitable for you?
How do centralized and decentralized exchanges work?
Centralized and decentralized exchanges require registration, know your customer, and your cryptocurrencies are stored in exchange accounts. Itâs convenient, but the exchange controls the process. All trades go through them, and customer support is available if something goes wrong.
Decentralized Exchanges (Uniswap, PancakeSwap) - No registration or KYC required, providing a true WEB 3 experience. Connect your wallet, and youâre ready to go! Trade directly with other users via smart contracts. Complete freedom and control!
â/â Pros and Cons of CEX and DEX
CEX:
â Fast trades, low fees
â Support for fiat currencies
â Advanced trading tools (such as derivatives)
â Assets are stored on the exchange, not in your wallet.
â KYC is mandatory
â Fees can be high.
âDEX:
â Full control of your assets
â Anonymity, no KYC
â Access to new tokens and DeFi projects
â More complex for beginners
â No support for paper currencies
â No support if you make a mistake
Why do people choose DEXs?
Full control over your cryptocurrency.
Anonymity, no documents or KYC.
Decentralized - Trading directly through smart contracts.
Early access to new tokens before they appear on CEXs.
Reduced risk of stock market hacking.
Why are decentralized exchanges improving?
Smart contracts are becoming more reliable.
DeFi and farming projects offer greater earning opportunities.
Lower fees on some blockchains (eg. TON).
More products and features are being developed!
Which is more popular?
Centralized exchanges currently have much higher trading volumes than decentralized exchanges, as they are a more direct tool for private investors than a traditional exchange market. In the relatively new and often complex world of digital assets and Web3, it makes sense that traders would gravitate toward familiar instruments.
However, as users become more comfortable with the Web3 infrastructure, decentralized exchanges are gaining traction. As shown in the second chart, over the past year, average trading volume on decentralized exchanges has grown by 3-4 percentage points compared to centralized exchanges â a clear positive trend. While the current numbers are still relatively low, they represent significant volumes that are expected to increase with mass adoption.
Conclusion:
CEXs are all about convenience and support. But if youâre looking for freedom, control, and anonymity, as well as access to DeFi â choose DEXs!
Which one do you use most and why? Share your thoughts in the comments!
#TON #FavoriteToken #IntroToCopytrading #elaouzi #BinanceTurns7
