Cryptocurrency Adoption Would Come To Standstill Without Decentralized Exchanges (DEX)

Smart contract-based exchanges seek to offer liquidity to traders through a simple, efficient, and decentralized route. Read it on.

Bitcoin (BTC) was difficult to acquire or sell in the early years of its existence because of a lack of choices accessible in the sector. To make BTC trades, customers either had to pay exorbitant fees or wait for a channel or countertrade to open up for days on end. Given the difficulties of transacting cryptocurrency, several questioned whether the revolutionary technology would be able to displace its rivals (conventional financial systems).

There are already millions of individuals across the world who hold crypto tokens or use the technology regularly. An essential contribution to the ease of access to cryptocurrency for retail investors has come through the fast growth of centralized crypto exchanges (CEXs) such as Coinbase, Binance, and BitMEX during the last decade. The CEXs made it possible to acquire almost any cryptocurrency using various payment methods, including bank accounts, PayPal, and credit cards.

Mt. Gox's 850,000 BTC loss in an assault led to its demise in 2014, highlighting the perils of CEXs and the risk of retaining funds in these exchanges. A total of $2.66 billion has been lost since 2012 by centralized exchanges, including Quadriga CX, Bitfinex, Binance, and Crypto.com, which have all been targeted by scammers.

Centralized exchanges have developed a reputation for themselves and satisfied many consumers despite the recent attacks. The downsides of centralized exchanges remain. These organizations can still not own and manage user data (a goal that blockchain aspires to), and they must abide by local laws on know-your-customer (KYC) compliance and order book size restrictions. Finally, the Celsius exchange's decision to freeze its customers' cash sparked a wave of criticism…Read Full Article

From: www.thenewscrypto.com

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