Today, blockchain technology is becoming so popular because of its wide variety of features. The platforms or apps that use blockchain technologies are known to be decentralized networks. It means there is no middleman to access your transactions. There are several decentralized exchanges but the most popular alternative to centralized exchange is the SOLANAX decentralized exchange. It is built on the Solana blockchain and so it offers many exciting features to the users.
If you choose the centralized exchanges, then you don’t have direct control over the purchases or storage. If you want to sell crypto, then exchange only works on behalf of you to search for the buyers. When you choose a decentralized exchange, then you get access to the private keys and you’re not dependent on any others. The decentralized exchanges are completely transparent. You do not have to depend on any other third parties. Also, there is not= one to charge you extra fees for the transactions.
Advantages of DEX:
One of the main advantages of choosing DEX is that it offers high security to its users. The centralized exchanges are more vulnerable that could affect the funds of the users. The best-decentralized platform has the best user interface making it easy for the traders to use. Next, you will enjoy great privacy by using the DEX. It does not ask one to submit any of the documents of the users. SOLANAX is the Automated Market Makers (AMM) DEX that works very simple that is an automated order book that facilitates liquidity on the exchange.
Liquidity means you need to have enough supply for demand needs in exchange. AMM works to solve the liquidity problem because it does not rely on large Traders. Instead, the platform uses smart contracts that always ensure liquidity on the platform. AMM eliminates middleman that means you have only lower costs for transactions. If you want to become a liquidity provider, then it is essential to meet the requirements of AMM algorithms.
Once you become the liquidity provider, then you could easily make continuous trading. Thus, there are several advantages of decentralized exchange that one enjoys as an investor or trader. But choosing the right exchange platform is essential. Not all decentralized platform comes in the same structure. Depending on the blockchain technology, the functions may get differed. So, choose the DEX platform carefully and learn about the functions before you start using the platform.