Are you making your first steps in crypto trading right now and searching for an optimal exchange? In such a case, be sure to consider all the options offered by the industry, including decentralized services. In our article, we will provide you with basic knowledge about them, as well as step-by-step guidelines on use.
To save you time and effort, we will describe this notion in comparison with centralized exchanges. In the latest mentioned case, as a trader, you are supposed to transfer funds into your account on the platform first and then use them to buy crypto. Meanwhile, in the case of decentralized services, you make deals with other users directly without any intermediaries — hence, there is no need to send your money to the platform first.
Now, let us mention the most convincing arguments in support of such sources:
· no depositing into an account on an exchange;
· no control on the side of the government;
· anonymity — you are not required to disclose your identity;
· all cryptocurrencies are supported;
· dramatically cheaper transaction commissions;
· minimum price manipulation;
· no geographical restrictions.
At this point, everything looks quite rosy. Still, this option has certain downsides as well:
· lower trading volume;
· if one loses money or information by mistake or accident, it cannot be returned;
· user support is not so advanced.
In any case, if you want to make use of all the advantages and conveniences delivered by a decentralized crypto exchange, you must give maximum attention to the choice of a specific platform. Here are basic guidelines for you:
1. Check its reputation and other users’ feedback.
2. Make sure it offers FA authentication, wallet encryption, and other security precautions.
3. Find out whether it supports the coins and tokens you are interested in.
4. Compare its fees with competitors.
5. Check its trade volume. The higher it is, the higher the chance your deals will be executed promptly.
6. Before making your first deposit, devote some time to surfing the platform and see whether it is comfortable and intuitive enough.
What about exact names? Start your search from Uniswap, Pancake Swap, Curve, SpookySwap, SushiSwap.
In the end, we suppose it would be useful for you to view short instructions on how to utilize such an exchange:
1. Register/create a wallet on the website chosen, for example, on Uniswap.
2. Replenish your balance with Ether or another currency supported.
3. Click on “Select a token” and find the instrument needed.
4. Specify the sum of the purchase and press “Swap”.
To sum up, such a decentralized service is a worthy alternative to conventional exchanges. Although there are extra risks involved, that is outweighed by lower fees, absolute anonymity, and a much wider range of coins.