CEXes vs Dexalot- What are the differences ?
CEXes vs Dexalot- What are the differences ?
Cryptocurrency exchanges are basically places where people trade digital assets. CEXes (centralized exchanges) operate similarly to traditional stock exchanges, where an organization or a firm controls the exchange, assets, and some other functions while DEXes operate on networks like ETH, AVAX without any central intermediary. These exchanges use blockchain technology to allow users to trade directly with each other.There is no custody risk nor limitation on withdrawals.
As someone who spends most of his time trading on these exchanges, I wanted to compare my experience on Dexalot, a CLOB on-chain dex, to centralized exchanges in this article. For me, both types of exchanges have had various pros and cons.
Let’s start with centralized exchanges, shall we?
- CEXes operate like traditional stock exchanges, where a central organization manages and controls the exchange.
- CEXes, most of the time,offers a more advanced and professional interface, allowing users to choose different trading modes and strategies, including perpetual, stop-loss etc.
- Most of the CEXes I use require users to register with an email address, complete some kind of identity verification process(KYC). They may also set limits on users’ deposits and withdrawals without even informing the users.
- CEXes use their own security system that can vary depending on the CEXes to ensure well being on the platforms.
- Some CEXes support fiat on-ramp, so if you plan to withdraw your digital assets and convert them into fiat currency, you may have to use CEXes because DEXes don’t fully provide this service yet.
What about Dexalot? What differences does it have ?
- Dexalot allows users to control their funds without the need for a third-party intermediary. User deposits their tokens to well-audited contracts that give control of the assets to the users themselves.
- Dexalot the interface of traditional centralized exchanges and allows users to view order books, trade histories, and charts. It has user-friendly UI and UX.
- Dexalot doesn’t require registration, KYC or such steps from users. It allows users to easily connect their wallets, deposit and withdraw funds, manage their portfolios, and trade at any time.
- Dexalot provides users with the ability to trade quickly with low transaction fees thanks to the Avalanche subnet. Transactions are being completed and confirmed within seconds for me. On CEXes transactions are fully off-chain, making them fast but less transparent.
- Dexalot’s maker and taker fees are currently fixed to 0.30% and 0.20% regardless of the size of the trade, which may look higher than some CEXes out there. For example, binance, known for having some of the lowest trade fees, with a default fee of 0.10% and 0.15% — and plus users can receive a 25% fee discount by paying these fees with BNB token. I hope that the Dexalot team will also implement a similar campaign in the future.
- Dexalot team states that they plan to integrate multi-chain, which will eventually allow users to trade across different networks — they also state that they intend to implement some advanced trading features such as perpetual trading in their future. Hence I believe that some of the current cons of using Dexalot may turn into pros in the future. Seems like we’ll have to wait and see how their plans unfold in the future.
In conclusion, I wanted to compare my experience on Dexalot and Cexes in terms of security, user experience, interface, speed, and fees. Dexalot is a better option for users looking for security, privacy, and freedom, while Binance may be a better option for users seeking more liquidity,more options, and relatively easier UI/UX. .
Thank you for reading. See you on the next scholars!
Author: 0xyourfavpanda
Editor: Brad McFall
Original article: CEXes vs Dexalot- What are the differences ?
About Dexalot
Dexalot is a revolutionary decentralized exchange bringing the traditional centralized exchange look and feel to a decentralized on-chain application. Its mission is to bring a truly inclusive and transparent environment where Dexalot users can trade crypto securely and efficiently, with no slippage or custody risk. It is built on Avalanche, the fastest smart contracts platform in the blockchain industry.
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