Cryptocurrency Exchange is a digital currency exchange that permits clients to interchange the cryptocurrencies for the other equity/cryptocurrency. These are generally market creators that get fees from a transaction or the commission for the assistance provided or simply the fees that have been charged as a corresponding platform.
A De-centralized currency exchange is the trade market that does not depends on the arbitrator’s service to hold the customer’s funds. The trade takes place peer to peer through an electronic (automated) process.
This total system can be achieved by generating proxy tokens through a decentralized collateral system. This rule is a contradiction with the current centralized model in which the clients deposit the funds and exchanges the funds freely with the traded platform. When the client wants to exchange again then these are converted into the specific cryptocurrency they represent.In this system, the user controls the fund. There are no hacks and server downtime.
Best De-centralized Exchanges that can be used for Trade or Exchange:
The Decentralized currency exchange is the best way to encrypt the data and free the users from the hacks and the thefts. This is the faulty exchange business model.
- Bit square: It is the open source system that allows the users to openly buy and sell the Bitcoins for the cryptocurrencies or the national currencies. There is no involvement of the third-party or the middlemen so there is no transaction between the client and the dealer (buyer and the seller). Bitsquare awaits the decentralized multi-signature collateral (escrow) system.
- NXT: NXT is a stage which allows users to question and exchange the assets. These goods can be exchanged for the NXT and not for the other cryptocurrencies. Here goods to goods or assets to assets trading are not possible.
- Open ledges and Bit sharesDex: It is the platform with crypto currency and uses trading of BTS and user-based goods or Assets. Open ledger is an online version or Web version of the Bit share which runs on the same platform.
- Oasis Dex: It is an Decentralized trading by the Maker Dao which helps you to buy crypto currency. The Testing is in the alpha phase and is not suggested for trading.
- BartedDex and StellarDex: It is the most Decentralized exchange and advanced method for currency exchange as it is using the feature of atomic swaps. If the user is a technology nerd then should go away with atomic swap using BarterDex.
- Stellar Dex is a popular crypto currency which has come up with the decentralized exchange. To initiate with stellar network one should generate a key pair which consists of a Public key and Secret key. The Public key is used to create and recognize an account which is used for gathering the funds.
There are many such networks for De-centralized currency exchange which are Bisq, Radar Relay, CryptobridgeDex, Waves Dex, IDEX etc. which are among the top Decentralized exchanges in terms of the figure and volume.
Merits and Demerits of De-centralized cryptocurrency:
- The most advantageous thing about De-centralized cryptocurrency exchange is that it is the security and trust of this system. Nobody has to worry about the security and the ethics of the decentralized exchange.
- It is more private and official system.
- User holds private keys to their funds causing no fear of scam and also can get forked coins via private key which other exchanges keep for themselves.
Demerits of Dec-centralized cryptocurrency:
- Some De-centralized currency exchange needs to be online and the trading requires to be performed through signaling for the payment received.