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Decentralized Exchanges

Dex

Decentralized exchanges allow people to exchange crypto tokens directly with each other. They have some advantages over moderate crypto exchanges - and other distractions. A redesigned exchange or DEX is a place where people can go to trade cryptocurrency without a link. To better identify which legal transactions have been made, it is important that you first understand how an intermediate exchange works.

How Does a Decentralized Exchanges Work?

Decentralized exchanges use smart contracts (automatic contracts) to facilitate trading between individuals, but do not control their currencies.

DEX handles this in one of three ways: an on-chain order letter, an off-chain order letter, or an automated marketing strategy.

In a chain order book, everything that is done is written in a blockchain. That is not just a real purchase, but also a request to buy or cancel an order. It’s the last resort in real estate, but the need to put everything on blockchain can make it more expensive and slower.

 

Advantages of DEXs

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    Confidential

    Separate transactions do not require U.S. citizens to enter confidential information, such as social security numbers or addresses, that intermediate exchanges are required to be required as part of the Bank Secrecy Act. So far, because DEXs do not control assets, they have fallen without such laws.
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    More options

    DEXs like Uniswap allow anyone to create a pair of tokens. You can create a new token and start changing the friend token immediately. In this way, DEX allows people to have tokens that they will use for low-cost funds (DeFi), services that allow them to save, borrow, lend or trade without going to a bank or other financial institution.
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    Low risk

    Since your coins can be held in one place but in a wallet with secret keys that you hold, you are protected from hacks. And while intermediate exchanges can make savings, in DEX you can continue trading.