DEX decentralized crypto exchanges

What is DEX?
Do you want to step into the wonderful world of CRYPTO CURRENCIES? You will most likely use a cryptocurrency exchange to buy your first Bitcoin or other crypto of your choice. After that, that cryptocurrency exchange can still be very useful to you as you can sell one digital asset and buy another. For example, you can exchange your Ethereum for XRP if you wish. But did you know that you don't actually control the crypto you hold on an exchange? You can't do whatever you want with your own crypto. Cryptocurrency exchanges have important data: Your Private Key. Remember the famous crypto saying: If you don't have your keys, you don't have your coins! Since the cryptocurrency exchange has your key, it also owns your crypto and maintains control of your crypto. Imagine if the cryptocurrency exchange had security issues on its platform. In recent years, we have witnessed some of them being hacked and hundreds of millions of dollars stolen. One of the reasons for this is that these cryptocurrency exchanges are centralized; Huge crypto fortunes are stored in one place and make a perfect target for hackers.
This is where Decentralized Exchanges come into play. A decentralized exchange, or DEX for short, attempts to address these shortcomings. Remember that Private Key we mentioned earlier? With a DEX, you actually hold the Private Key. This means you have full control of your own crypto and decide how to keep it secure. If you remember, we also mentioned that in normal stock markets, all wealth is stored in one place. In a DEX, the situation is the opposite; everyone holds their own keys and as a result the wealth is completely dispersed. It is decentralized. However, a DEX does not offer the same services. Let's dig a little deeper into this topic.
Why might I want to use a DEX?
Let's start with the most important part: How can you sell one cryptocurrency and buy another while holding your Private Key? In order to log in to central cryptocurrency exchanges and use the exchange's services, you must open an account. In a DEX, your Private Key serves as login information, i.e. username and password. Once you log in to the DEX with your Private Key, you will immediately see your crypto balances. You don't have to provide any personal information, which is great for those who value their privacy! But that doesn't mean that a DEX doesn't have its own challenges. Let's take a look at the pros and cons of using a Decentralized Exchange.
What other advantages does it have? You probably know that traditional cryptocurrency exchanges exchange one digital currency for another on your behalf. So, what is the difference between DEX? The DEX does not actually process the exchange itself; The transaction is carried out entirely between peers (P2P). This essentially means that the platform is there to let you buy and sell your crypto directly with someone else, rather than being involved in the process. Okay, that sounds good, but what does this mean for you? This gives you two
advantages:
1. You don't have to trust anyone to make the trade happen.
2. Fees paid for trading are generally lower than regular cryptocurrency exchanges. Finally, let's talk about security.
DEX is decentralized, meaning everyone ensures the security of their own crypto. You don't have to trust the security of your crypto to anyone else and you have complete control. This is a blessing, but it can also be a curse if you don't take this responsibility seriously. Although Dexin has advantages, it also brings risks.
What are the disadvantages?
As you read this article, you might be thinking that you would rather start your crypto journey with a DEX, right? Unfortunately, such a thing will not happen. DEX is an incredible tool for trading. On the other hand, it does not allow you to buy your cryptocurrencies there. There may be a feature on their page to purchase cryptocurrency, but this will be an external service; that service is not actually within the DEX platform. Decentralized exchanges only offer the option to trade your crypto assets for other crypto assets; does not offer the option to purchase them for Euros or US dollars. It may be great to be the one to decide how to keep your private keys secure, but it also means that ensuring that security is entirely your responsibility. One problem when using a DEX is that most methods require you to enter your private keys into a computer or smartphone. This may expose your private keys to online attacks. First of all, you need to know how to secure your private keys. The best and easiest way to secure your private keys is with hardware wallets like the ones we created. We recommend that anyone looking to use a DEX read this article which shows different ways to secure your private keys. Finally, using a decentralized exchange is quite different from regular exchanges. Selling your Bitcoin and buying Ethereum is not as simple as logging in and just clicking two buttons. The uses of a DEX are generally somewhat limited and are more suitable for advanced users due to its complexity. Additionally, the assets you can buy and sell on a DEX are often limited. However, a DEX can be used to diversify your crypto portfolio while maintaining ownership and privacy.