Decentralized Exchange: Carving New Phase For Next-Gen Crypto Trading
Unlock new revenue streams by availing our top-grade decentralized exchange development solutions
Lagging in business due to the centralized exchanges?
It's time to revise your business to a decentralized exchange. Reach Assetfinx as we are pro in developing a decentralized exchange platform.
What Is Decentralized Exchange?
A Decentralized Exchange is a peer-to-peer digital currency exchange that allows users to buy cryptos securely via an online platform without any intermediates. Decentralized exchange is an innovation to rectify the loopholes present and faced in a centralized exchange. The crypto exchange between a buyer and seller happens in a secured environment and DEX relies on smart contracts to keep track of information. A decentralized exchange functions by utilizing blockchains to facilitate transactions, and use either an Automated Market Maker (AMM) or an order book model. DEX comes with high security, no central authority, anonymity, and many more. Hence it has transformed into a fast-growing investment platform and the choice of many proficient traders.
Features Of Decentralized Exchanges
Decentralized Exchange comes up with high-security features for the assets maintained in it. DEX is non-custodial hence they do not demand any private keys before initiating a transaction. Smart contracts help users to interact with DEX and trade automatically.
The decentralized exchange platform is developed and deployed at a low and reasonable cost by leveraging self-executing smart contracts. DEX allows trading without any intermediaries and it uses a gas fee structure. The fee charged by a decentralized exchange is very low when compared to a centralized exchange
The decentralized exchange will never demand private keys for trading. Users are not obliged to encounter KYC/ AML procedures.
Anonymity is maintained on a decentralized exchange platform when users exchange a cryptocurrency for another. This resulted in attracting many users to the platform.
Less Counterparty Risk
Counterparty attack or risk happens only when any of the parties involved in a transaction does not complete their deal and denies the contractual commitments. But this is not possible in a decentralized exchange as its smart contract eliminates all the possible risks that are about to occur.
Reduced Security Risks
The risk of being hacked or malfunctioning is reduced in a decentralized exchange as the platform is accessed only when users wish to carry out a transaction or trade.
How Decentralized Exchange Differs From Centralized Exchange?
- A Centralized Exchange differs from a Decentralized Exchange in many ways.
- A Centralized Exchange is a third-party corporation that holds the central authority and foresees every transaction and user's asset. Whereas in a Decentralized exchange, there is no central authority, and exchange happens between the appropriate buyer and seller.
- CEX provides low security and they are vulnerable to cybersecurity threats, and hacks. On the other hand, DEX provides high security as it comes with self-executing smart contracts.
- When compared to DEX, CEX comes with high liquidity. DEX platform is filled with high liquidity providers that is lesser than CEX.
- CEX has a friendly user interface and has high trading volumes. DEX comes with a less trading volume when compared with CEX but the platform provides better privacy and anonymity.
- CEX has a single regulatory body to watch over the entire functionalities happening in the platform with certain fixed rules. In DEX, the authority is given to every platform users and it has no fixed rules.
- In DEX traders are not allowed to trade using fiat currencies. In CEX, users can use their fiat currencies in trades.
- CEX imposes a high transaction fee when a transaction is initiated. Whereas in DEX, the transaction fee is very low and cost-effective.
- A centralized exchange demands users' information like KYC/ AML. DEX is known for its anonymity and non-custodial feature and never demands any information from its users.
Decentralized Exchange Development
Decentralized exchange development is a process of creating a software system that allows users to buy, sell, and trade cryptocurrencies on a peer-to-peer basis. This is different from a centralized exchange, where users are required to trust their money and personal information to the third party that runs the exchange platform. If you're looking to create a decentralized exchange, there are a few key reasons of hiring developers. You don't have to worry about maintaining your decentralized exchange once it's finished. The developers will take care of this for you. Being a pioneer Decentralized Exchange Development Company, we support crypto freaks who like to develop a DEX platform.
Benefits Of Creating Decentralized Exchange
- The decentralized exchange blooms with many user-based benefits and some of the notable benefits of decentralized exchanges are,
- The transaction occurs without any intermediates or third-party companies.
- No KYC and AML standards.
- Ownership is given in the hands of the users.
- Users have sole authority over their possessions.
- Users are provided with enhanced privacy and anonymity and they will not demand any source of information in a decentralized environment.
- Users can access their data and assets irrespective of the time and place.
- The platform is run by liquid providers and users. As a decentralized platform, it takes complete control over the money offered to users.
- Decentralized exchange reduces market manipulation and allows peer-to-peer cryptocurrency trading and annihilates users from false trading.
- The decentralized exchange platform assures safety, hence users are free from hacking, threats, theft, and any kind of fraudulent activities in a business or organization.
Why Create Your Own Decentralized Exchange Platform With Assetfinx?
Assetfinx is a prominent White Label Crypto Exchange Software Development Company that has years of experience in providing decentralized exchange services to its clients with the support of professional blockchain developers. We develop and provide services in two ways. Firstly, we develop decentralized solutions from scratch and it takes a couple of weeks to launch. On the other hand, we come up with a ready-to-launch and customizable White label Decentralized Exchange solution that can be deployed instantly without any delay. In both options, we acknowledge our clients' basic requirements in order to step ahead from the crowd. Reach Assetfinx if you are interested in developing a Decentralized exchange platform and our tech team will guide you throughout the entire process. Feel free to contact us via email or WhatsApp.
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