Speed, cost, usability and security — these are priority considerations for any crypto trader. In 2023, decentralized exchanges (DEXs) have proven to be a standout choice for most as decentralized platforms become increasingly user-friendly with innovative products that are on par with what traders are used to seeing on centralized exchanges (CEXs). Its meteoric rise is well-deserved, as they have played a significant role in empowering new and existing crypto traders to push the boundaries of trading as they know it.
The Perennial Challenge
Traders have been met with plenty of challenges over the years, and most prominently in recent months, so much so that it is almost a norm for them to simply accept:
Lack of Access: Being barred from certain trading products and services based on location
Poor UX: Not being able to easily join a platform due to complex sign-up procedures
Partial Ownership of Funds: Lack of full/complete control over their own funds, with the risk that the platforms might malfunction and are unable to allow for full asset withdrawal in times of emergency
Data Vulnerability: All of their sensitive data and information available for these platforms to access, and having to go through inconveniences if and when such data is compromised by malicious parties on the platform
As traders and the crypto community increasingly have to make compromises, to simply accept the possibility of misuse and mishandling of their funds and data, and even the permanent loss of control over their own assets, DEXs are proof that there is no need for these individuals to settle for an option that does not fill them with utmost confidence and trust. The power of decentralization lies in individuals having full control over their trading assets and activities, and that failsafes have been structurally designed to safeguard their inalienable ownership rights as they trade.
Here's how decentralized trading empowers everyone to trade with confidence like never before.
Four Key Considerations With Decentralized Trading
Permissionless: Full Access Anywhere
With decentralized trading, users are able to participate on decentralized platforms from anywhere in the world — they would not need to seek the approval or permission of the platform or any intermediary. This is complemented with efforts to make decnetralized platforms more usable and familiar to users for easy, seamless onboarding. As a result, connecting to the platform could be as simple as creating a digital wallet and signing in when prompted, if the wallet service is available on the application. With just a mobile app, they would be able to create, connect, deposit and trade immediately, and that includes withdrawals too.
Non-Custodial: Your Keys, Your Funds
Self-custody is truly a game-changer for traders — before decentralized platforms, it was unfathomable for the common individual to have control over their funds in the absence of a centralized entity. If you placed your funds in the bank, you would be subject to the bank's deposit and withdrawal rules; if you placed your funds in a centralized exchange, in case of temporary downtime or permanent closure, you ran the risk of losing your funds entirely; and even with some decentralized platforms, if safeguards were not written in code, you would still be susceptible to possible vulnerabilities that would lead to the loss of your funds. That is why it's critical that decentralized trading now has evolved — with good platform infrastructure and design, leading decentralized platforms can ensure that users are able to verify and withdraw their funds even without the faciliation of the platform itself.
Non-KYC: Safeguard Your Privacy
Data leaks are prevalent in the web2 and web3 realms. As long as a third-party collects your personal data, the risk of such information being exposed exists, but what if a platform did not ask for any of that? No names, addresses, emails, bank account information or photo verifications — you are identified simply by an authorized wallet address of which access and ownership is proven by a seed phrase and keys. The only way to guarantee your data privacy is by not having to provide them to any third-party in the first place, and this is the promise of decentralization.
Transparency: Systemized Verification
Your transactions on decentralized platforms can be easily tracked and verified on-chain via blockchain explorers. The integration of different types of networks, for example layer 2s, are also potential safeguards that could add robust security features to a platform. It is evident that decentralization and its many innovations can, in due time, present an optimal solution for the provision of transparency while retaining privacy. Some existing solutions such as batched transactions and asynchronous models allow for the platform to traverse between the two, and as the world of decentralization matures, verification methods that allow users to enjoy both transparency and privacy will become increasingly sophisticated.
There is still much more room for decentralized platforms such as DEXs to grow, and the possibilities are endless. Derivatives DEXs in particular are poised to set the trading scene ablaze in 2023-24, pushing for greater adoption and innovation in the near future.
Like many DEXs in the market, ApeX Pro is ready to open its doors to a new generation of traders looking to accumulate and grow their wealth in dynamic, customizable ways.
Join us and find out more about what ApeX Pro has to offer.