The cryptocurrency industry is constantly changing. Through the years, so many things have developed. That is why it is important that you know exactly what you are getting yourself into if you choose to start investing in cryptocurrency exchange. If you want to sell or purchase tokens, then you should be familiar with the Cardano DEX.
Centralized vs Decentralized Exchange
Cryptocurrency exchange lets users buy and sell tokens. Most of the cryptocurrency exchanges these days are already centralized. The centralized crypto exchange platform acts as the 3rd-party when transactions are made between the buyer and the seller. Even though the centralized exchanges are operated and controlled by a company which makes them more reliable, there are still risks and disadvantages involved with its processes. Aside from the transaction fees, there are also hacking risks.
The decentralized crypto exchange (DEX) on the other hand will allow users to transact without the need for a third party to get involved. And because of the safety risks involved with a centralized exchange, this is the reason why DEX is now much preferred. It prevents any hacking risks and users are sure that there is no market manipulation happening as they are the one who will be in full control of the transactions.
Understanding How DEX Works
Before you consider DEX, it is best that you have an idea of how it works. If a user wants to buy a cryptocurrency and prefers to do it through exchanges, they need to comply with the necessary processes, like signing up then depositing their money on their currency of choice. This is in exchange for the cryptocurrency that they want to purchase. If they already own a cryptocurrency, they can also choose to deposit this instead of using real money. It is true that DEX shares the same functions with the centralized exchange, DEX does not rely on a 3rd party for the transaction to push through.
Why Choose ADAX?
ADAX is currently one of the most popular automated market makers in the cryptocurrency trading industry. The platform specifically focuses on serving the Cardano network users. It was designed to have the most favored features of the Cardano ecosystem for a smooth trading experience within the Cardano network. ADAX is banked to be the best rival of even the largest DEXs out there.
ADAX will let users trade freely without the restrictions that they may experience with centralized exchanges. This platform may seem like it’s based on the Cardano network, but ER20 is its native token. Expect that this Decentralized Finance (De-Fi) protocol will help optimize the Cardano blockchain’s capabilities.
Is DEX a Good Option for You?
You have to remember that the purpose and functions of the decentralized exchange are basically the same as the centralized exchange. Their goal is to facilitate a seamless transaction between the buyer and the seller. So is DEX a good option for you? As long as you see the importance of the purpose of DEX and how it compares to the centralized exchange, then for sure, you will also consider it for your trading benefit.