Trading volume on decentralized exchanges (DEX) reached $ 46.2 billion in Q3 2020, increasing by 12.3 times compared to Q2. The growth is associated with the active development of the DeFi market.
What is DEX
DEX is a decentralized exchange that uses distributed ledger technology, where trading is carried out without the participation of third parties, while the participants themselves control their funds. The principle of trading is simple: using the blockchain, the DEX connects a seller and a buyer to interact with each other and carry out a transaction with cryptocurrencies.
What are the advantages of using DEX
Each trader chooses an exchange according to their preferences, but there are main factors that influence their choice: safety and ease of use. Let's look at how decentralized exchanges are matched against key factors.
- DEX does not store user funds and data. Since the exchange doesn't have a single repository to access all funds, it is nearly impossible to hack it. All funds are kept only by the trader and belong only to the trader.
- Maintaining confidentiality: users do not need to pass verification. Since you do not share your data with anyone, this minimizes the risks of third parties gaining access to your assets.
- DEX does not have a leadership that can freeze your account, transfer data to the third parties or rule out price manipulation.
- Regulators cannot close DEX thanks to the use of distributed ledger technology, where each node in the blockchain operates independently of the others.
- A user friendly interface is available that makes it easy to understand the details of the exchange.
What are the disadvantages of using DEX
- There are no such options as margin trading or order mode selection.
- Most DEXs operate on smart contracts, so it is possible to trade tokens based on smart contracts only. DEX is perfect for listing EDC20, a trading token based on Ethereum smart contracts.
- No fiat currency exchange. For many users, this is a serious drawback, since not many goods and services can be bought with cryptocurrency, so users need to exchange cryptocurrency for fiat currency.
Thus, EDC Blockchain solves the above problem. The EDC Blockchain coin (EDC) is a bonus coin that is used every day and serves as a means of payment for goods and services for community members. EDC fully meets the needs of entrepreneurs: how to sell their products in the markets, how to attract and retain customers, how to motivate employees. Therefore, the ECRO partner trading platform is preparing to launch, providing additional marketing opportunities for promoting business and the ability to exchange EDC coins for any goods and services anywhere in the world.
Trading is an additional opportunity for coin owners who want to get a liquid instrument for running their business or access to purchase goods with EDC coins. You can view the available liquid exchanges for buying and exchanging coins at https://blockchain.mn/exchanges/.
After completing the transition to a decentralized blockchain, EDC Blockchain participants can offer any exchanges for listing the EDC coin. Thus, users can independently control the direction of the project development and contribute to the active promotion of the coin in the market.
Why is listing on leading exchanges so important? The recognition of the coin (popularity equals liquidity) and the interest of traders who actively trade the coin and maintain the market balance rather than just sell, are growing; the community is growing and developing (total number of EDC Blockchain wallets: 1,335,707); new partners are being attracted; the sphere of influence, including the widespread use of the EDC coin as a means of payment for goods and services, is expanded. EDC Blockchain is interested in increasing the number of quality platforms to promote and increase the value of the EDC coin.
What kind of decentralized and centralized exchanges do you think can contribute to the development of EDC coins in the market? Send your suggestions to support EDC Blockchain or write in the comments on social networks: Telegram, Facebook, and Twitter.