Rubric for beginners
Decentralized exchanges allow people to exchange cryptocurrencies directly with each other. They do not have any governing body. Managed automatically (smart contracts).
The difference between decentralized exchanges and centralized exchanges:
Centralized exchanges (CEXs) are traditional exchanges that have leadership. The management is responsible for the confidential data of users, stores the history of trading, controls the work of the exchange and solely makes all decisions on the development of the project. To trade on such crypto-exchanges, in most cases, you need to go through verification (KYC).
Decentralized exchanges (DEXs) do not have a single governing body. Trading on a decentralized exchange does not require registration and verification.
As a result, DEX does not receive or store any user data. To start trading on a decentralized exchange, it is enough to start and connect a cryptocurrency wallet. DEX does not store funds, so users are solely responsible for their safety.
Pros:
- Anonymity
- Security of funds (provided that you yourself do not screw up)
- No single entry point
- Abundance of coins that are not on CEX
Minuses:
- Limited functionality
- Low liquidity
- Lack of support
- Abundance of scam coins, be sure to check issuers
Popular decentralized Stellar exchanges:
- Scopuly
- StellarX
- StellarTerm
- Lobstr
- Lumenswap
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