DeFi dydX, CEX versus DEX – It is common to contrast our cryptographic universe with that of traditional finance. In fact, the genesis of bitcoin brings with it the fundamental principles that are at the origin of the disruptive blockchain ecosystem: decentralization, anonymity and ownership. However, this absence of an intermediary makes it difficult to access cryptocurrencies. That’s why the DEX, decentralized exchange in English, are still too often shunned by digital asset holders. Most of them prefer the simplicity of CEX (centralized exchange), at first glance more capable of coping with the heavy work of mass adoption. Unfortunately, from Celsius to FTX again this week, the news never stops showing us the centralization defects. A providential highlight for platforms such as dYdX that offer another model, more secure, because it is more decentralized.
Le Journal du Coin offers you this promotional article in collaboration with dYdX.
Centralization and Decentralization: the brothers enemies of cryptocurrency
Centralized cryptocurrency platforms
You know them all. Binance, Kraken or even Uniswap. These popular and centralized platforms are business models similar to those of a stock exchangeand sometimes even a bank.
The advantages that the CEXs highlight are numerous. Transaction speed, ease of use, fixed fees, centralized exchange makes theintermediary between your cryptocurrencies and you. It offers you a simplification of the process. Keeps your digital assets. In short, it does the job for you. In fact, it is common to hear that the CEXs are i areas more suitable for beginners.
However, and the news of pCentralized FTX platform It still shows us today, centralized platforms can present serious dangers to your funds. Like the nightmare experienced by the users of the exchange managed by Sam Bankman-Fried. Centralized platforms are for-profit activities. Their main goal: serve the interests of society. Also, scams scam exit and other Ponzi pyramids all are examples that illustrate the flaws of a centralized system.
Privileged intermediaries of a runaway regulation, the CEX illustrate and operate on notions that, paradoxically, are contrary to the philosophy and principles of Satoshi Nakamoto, the creator of Bitcoin. Constrained, limited, controlled users of cryptocurrency platforms cannot therefore benefit from all the opportunities of DeFi, decentralized finance.
>> Reconnect with the decentralized ideal of cryptocurrency pioneers on dYdX (trade link) <
Decentralized cryptocurrency platforms
On the contrary, the decentralized cryptographic platforms (DEX), like dYdX, are rethinking the notion of traditional trading and finance. They redesign ownership concepts and allow their users to do so become actors in their own investments.
The advantages of DEXs they are also numerous. Users have their own private keys. Therefore, they remain anonymous and retain their personal information. In addition, they are actually less exposed to cyber attacks. Thanks to this approach, dYdX proposes to facilitate access to DeFi so that everyone can easily benefit from these very profitable protocols.
In fact, still embryonic, the decentralized finance platforms dealing with difficulties that dYdX allows to bypass: limited functionality, complicated interfaces, delicate manipulations for beginners. Their offers are no less interesting: advantageous returns, the possibility of converting their cryptocurrencies (swaps), access to decentralized applications (DApps) are all advantages that make DeFi platforms valuable for our ecosystem.
dYdX: the advantages of DeFi without limits
The simplicity of CEX, the revolution of DEX
DYdX it allows us to lift the clichés and understand that DeFi can be accessible, even to beginners!
Currently in transition from the Ethereum blockchain to level 2 StarkEx (on this we will return), the dYdX platform will be for its v4 (whose mainnet will be implemented in the second quarter of 2023) in full capacity to offer the following services:
- Trading on margin;
- perpetual contracts;
- staking (passive income in native dYdX cryptocurrency).
>> Come and take your first steps in the universe of decentralized cryptocurrencies on dYdX (commercial link) <
In other words, dYdX opens up a decentralized path for you with the aim of making you get the most out of DeF, inoriginal spirit of freedom that saw the birth of blockchain technology. The anonymity allowed by the platform and the fact that you have the private keys of the wallet where your funds are stored allow you to fully enjoy the joys of decentralization, without constraints.
Furthermore, dYdX allows its users to enjoy a power of government, another great innovation made possible by decentralization. The dYdX Foundation, Decentralized Autonomous Organization (DAO) thus ensures that users can vote on decisions, changes and development of the platform.
The platform’s cryptocurrency, DYDX, finds all its usefulness and importance here. It allows its holders to vote on proposed changes to the protocol. Obviously, of With great powers comes great responsibilities. So remember to carefully write down yours ” seed phrase “(secret phrase), the platform will not be able to give you a copy in case of loss.
dYdX: DeFi and security for your funds, at a lower cost
Originally established on EthereumdYdX chose to implement StarkEx. It is a second level solution called “Level 2“Sure, the decentralized platform allows you to avoid using the Ethereum blockchain to transfer your funds. This sometimes has exorbitant gas costs. Otherwise, deposits and withdrawals are not taxedunlike a CEX.
You will thus be able to benefit from a wide choice of cryptocurrencies (36 different cryptocurrency pairs). Furthermore, the transactions have a lower cost. Which is currently not possible on a centralized exchange.
As you may have guessed, the benefits of a decentralized platform like dYdX are enormous. Enjoy the returns of your cryptocurrencies at a lower costearn cryptocurrency as a reward for staking, in just a few clicks, all without KYC and without entrusting your cryptocurrency to a third party.
In a chaotic context, going beyond definitions, the basics of what a DEX and a CEX are seemed essential to us. Once the hits have been eliminated, and again after some additional research, it will seem obvious to you that dYdX offers a truly relevant solution. A simple decentralized exchange, where you are a governance actor. The dark news of the moment reminds us too much of the importance of doing your own research. We suggest you start here by verifying for yourself the seriousness of this decentralized platform with our dYdX tutorial.