top of page
  • Andre

Intro to DEX - Pros & Cons

1. PRO – Privacy and Anonymity

Using a DEX typically only requires you to connect your wallet and sign a transaction with no other identify verification process necessary.


2. PRO – Security

DEXs are generally more secure than CEXs for two reasons: non-Custodial which, unlike CEXs, the DEX does not hold your Private Key – YOU are responsible for the safety of your Private Key. No identity checks so there is no risk of leaking your private information.


3. PRO – DeFi and NFT Integration

DeFi and NFTs are the two frontiers of the blockchain space and the DEXs are strong propellers. DEX allows users to access the world of smart contracts and DApps that provide financial services, including lending and savings products, as well as NFT products.


4. CON – Limited Trading

DEXs are currently limited in functionality. Features like margin trades, limit orders, options, futures, etc. are typically unavailable.


5. CON – Efficiency

DEXs are not as fast and efficient as CEXs due to the scalability issues most blockchains are faced with. CEXs do not incur this problem because they use both on-chain and off-chain mechanisms to run smoothly.




Recent Posts

See All

1. Solution A successful project must solve a real-world problem or address a real-world pain point. 2. Decentralized Must be a reason for the project to be decentralized, if there is no reason, it wo

1. Strategize Trade in the right mindset and a clear strategy, it’s a zero-sum game, meaning everyone who benefits, someone else gets dumped on – determining that not everybody gets Lambo with crypto.

1. Stick to your game plan Continue to trade according to your financial plan. Sticking to your plan will ensure you earn profits at higher valuations and earn liquidity at lower prices. 2. Take profi

bottom of page