All You Need to Know About Decentralized Crypto Exchanges

The term “Cryptocurrency” has become a buzzword in the last few years. It’s nearly impossible to counterfeit cryptocurrencies due to their decentralized behaviour. That’s why many people are panting towards crypto exchange services. The surge in cryptocurrencies has made businesses think of investing in DEX trading platform development. A crypto exchange allows users to buy or sell cryptocurrencies easily. Crypto exchanges are of two types: Centralised and Decentralised.

Centralized vs Decentralized Exchanges: The Difference  

1. Definition: 

Centralized exchanges are platforms where users can buy and sell digital assets easily. In these types of exchanges, a third party or an intermediator is involved in the transaction process.

Exchanges that don’t rely on any third party while processing transactions are known as decentralized exchanges. In these types of exchanges, smart contracts and liquidity pools are used to fulfill and execute orders. 

2. Security:

Though the information is stored on a central server, centralized exchanges are more prone to hacks.  

Due to their decentralized nature, decentralized exchanges are more secure as compared to centralized exchanges. 

3. Liquidity: 

Centralized exchanges have high liquidity. 

Liquidity is low in the case of decentralized exchanges. 

4. Speed: 

Transaction processing speed is low due to middlemen involvement. 

As decentralized exchanges come without any third-party intervention, the transaction processing speed is high.  

5. Transaction fee: 

Centralized exchanges charge a transaction fee to users for carrying out the transactions. 

There is minimal to no fee in the case of decentralized exchanges.

Business Benefits of Investing in DEX development

The below-listed are some business benefits of investing in DEX development:

Provides revenue generation opportunities 

Investing in DEX development could turn out to be the best revenue generation opportunity for businesses as well as users in the crypto market. Users can earn money by becoming a liquidity provider. Users can submit digital assets to the decentralized exchange of their choice and put them into a pool with other crypto traders. Doing so will help users earn a share of trading fee revenue. 

Helps Businesses Capture Wider Audience Base

Businesses in the crypto market must invest in the DEX trading platform development to capture a wider audience base of crypto traders and to create brand awareness. A wider market reach will build a solid brand presence and help you earn greater profit in the long run. The more the number of users utilizes your decentralized exchange platform, the more will be the business revenue.  

Supports Multiple Cryptocurrencies 

A decentralized exchange platform will help users to buy and sell a variety of cryptocurrencies that may be difficult to exchange on other platforms. In the case of centralized exchanges, users find it difficult to trade tokens or cryptocurrencies that are not popular in the market. Moreover, many centralized exchanges restrict users from foreign countries to buy and sell digital assets. This is where a decentralized exchange comes into the picture.

Top Decentralized Exchanges in the Market 

The following are some popular decentralized exchanges available in the market: 

Uniswap 

Uniswap is one of the best cryptocurrency exchanges created in 2018 by Hayden Adams. It uses a decentralized network protocol that facilitates automated transactions between cryptocurrency tokens on the Ethereum Blockchain through the use of smart contracts.  

SushiSwap 

SushiSwap is an automated market maker (AMM) built on Ethereum that seeks to incentivize users who buy and sell crypto assets on the platform. Users that own Sushi tokens can participate in community governance and stake their tokens to receive a portion of transaction fees.

BurgerSwap 

It is a decentralized AMM built on the top of the Binance Smart Chain (BSC). Being one of the best-decentralized exchanges available in the market, it allows Ethereum users to seamlessly migrate to the BSC network where they can get benefits such as low transaction fees and faster block times. 

PancakeSwap

PancakeSwap is a fast and inexpensive alternative to Ethereum. It is built on Binance Smart Chain instead of Ethereum. Just like the Uniswap DeFi AMM protocol, it enables users to swap between BEP-20 tokens by tapping into user-generated liquidity pools. 

Conclusion 

The decentralized exchange appeared first in 2014 and gained popularity due to the rising growth of the DeFi market. With the advent of Automated Market Maker, DEXs have evolved beyond their conventional setbacks. Considering their rising market, businesses have started investing actively in the DEX  development. 

If you’re one of them and looking forward to creating a DEX trading platform for your business, then it is advisable to get in touch with the best DEX trading platform development company like Antier Solutions. We have a cross-functional team of Blockchain engineers and subject matter experts who deliver world-class decentralized exchange platforms in line with your business requirements. Whether you need a decentralized derivatives exchange or a spot exchange, our mission-driven solutions cater to your business needs.    

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