The appearance of Bitcoin (it was almost 10 years ago) has changed the lives of millions. Crypto miners started to earn on BTC mining. Later, when the other cryptocurrencies appeared, everybody understood: they need a special service or services that will help them to exchange the crypto for fiat or other cryptos, and vice versa. These services appeared but they were not decentralized first. Decentralized platforms were created later.
The decentralized trading platform is an exchange that does not store ever store the funds and any personal data of the users on its servers. It works only as a platform for finding various matches for applications to buy and/or sell the users’ assets, usually cryptocurrencies. The decentralized trading is an operation that is going on peer-to-peer without any financial intermediaries.
Looking for the best decentralized trading platform
Today, most of the existing platforms that offer the services of the crypto exchanges, call themselves decentralized. In reality, they are not completely decentralized as they always use their own servers to store trading data and applications for selling/buying the users’ cryptos. Meanwhile, the clients of these platforms keep the private keys themselves.
The differences between decentralized and centralized platforms
Centralized exchanges/platforms are always managed by a certain company or a person that is always focused on making his own profit. Managing exchanges take responsibility for protecting the user’s data and the information connected with trading. They control the operation of the platform and take all the decisions.
Decentralized ones are managed automatically (or semi-automatically). Here, the user can be involved in taking this or that decision. These platforms provide the technical possibility of direct interaction between the participants and use a blockchain.
The existing decentralized platforms
Today, you can find the following ones:
– Waves Dex which offers to exchange Waves for fiat (traditional money), and vice versa.
– IDEX which is mostly working with Ethereum and deals with the real-time trading. The user can trade directly from a hardware wallet.
– Switcheo Network that has zero commissions and works with NEO, the cryptocurrency, which is often called “Chinese Ethereum”.
– Bancor Network that has got a very convenient automatic pricing mechanism. Here you can buy or sell tokens with a good profit.
According to the latest statistics, over 200 of these platforms work today. In reality, they number can exceed several thousands