Key Features of Decentralized Exchange

Since last few years demands of decentralized exchange is increasing because in past we have seen news of hacking of centralized exchange. It is strongly recommended from my end that never keep your fund on centralized exchange always hold your fund in Hardware wallet or a mobile wallet like Jaxx liberty that allows user to control their private keys. transfer your funds to centralized exchange when you want to sell.

I this post I will explain some of the key feature of decentralized exchange. some of the most Popular decentralized exchanges are Uniswap , PancakeSwap and Curve Finance etc. You can also visit CoinGecko to see complete list of top Decentralized Exchange with respect to their trading volume.

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1. Decentralized exchanges have no control of third party all transaction happen on exchange in on Peer to peer.
2. A centralized exchange may ask you to complete the KYC (Know your Customer) to follow compliance guideline of respective country, whereas on decentralized exchange you have no need to do the KYC.
3. A Decentralize exchange works on principal of automation where trade happens peer to peer hence operating cost is low . Hacking of a decentralize exchange is impossible because you own your funds for trade and you have no need to transfer your fund to any third party.

Above points are few benefits of trading of decentralize exchange but it does not mean that decentralize exchanges have no downside. The major downside of decentralize exchange is you would not able be trade in fiat currency. If you want to easily cash out your crypto asset in fiat currency then decentralize exchange is not a good choice for you.

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