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You can learn about the differences between Decentralized (DEX) and Centralized (CEX) Exchanges here . Now we’ll briefly cover how to trade on a DEX. The exchange process itself is extremely simple. You do not need to register on the exchange, make a deposit to trade, or submit your personal data to the exchange operator. You just connect your crypto wallet and immediately see all the tokens available to exchange. Then you choose what you want to exchange and confirm the transaction – and the tokens you acquired are instantly transferred to your wallet. There are no centralized intermediary companies involved in this transaction; the ex

IDO (Initial DEX Offering) is the initial offer of tokens on a decentralized exchange (DEX) and, at the same time, is currently the most popular method of crypto crowdfunding. This method is beneficial to both startups and investors. Unlike ICO (Initial Coin Offering) and IEO (Initial Exchange Offering), the requirements for investors and developers are minimal, and the token is listed on the DEX immediately after token minting, IDO, and creation of the liquidity pool. Typical IDO procedure goes as follows: 1. Preparation – working on the website, white paper, yellow paper, and social networking to create a community. 2. Presale – th

It is well-known that decentralized exchanges do not have a central node or server, and work without administrators or any particular management body. All transactions are conducted without intermediaries. However, this does not mean that cryptocurrency traders are the only DEX participants, even though the exchange itself was created specifically for them. Key participants of DEXes: Traders – participants who exchange one kind of token for another. Liquidity providers – cryptocurrency owners ready to deposit their cryptocurrency in liquidity pools, which serve as the base of the entire DeFi system. To put it simply, liquidity provid

Front-running is a kind of insider trading with financial assets that long predates cryptocurrencies and cryptocurrency exchanges. If you are a broker, the idea is self-evident. Knowing that your client is going to make a large purchase on the exchange, which will naturally increase the asset value, you simply buy some for yourself first, then sell it at the higher price. Profit! Front-running is even simpler on decentralized exchanges, where information about transactions (i.e. purchase and sale offers before they occur) is absolutely transparent. There is no need to possess any insider information; it is there, on the blockchain. This

Decentralized exchanges (DEXes) can genuinely be called trustless, as this is the best way to characterize their main distinction from the centralized currency and trading exchanges. To trade on a DEX, you don’t need to “trust” the exchange to perform transactions. DEXes work “without trust” – you may not know who is behind them, since DEXes work automatically. They are, in essence, a smart contract. A smart contract cannot fail to follow the instructions given to it – this is the definition of a system that functions without trust between the two parties. Centralized exchanges (CEXes) generate orderbooks (price quotes for purchases and sa

Here we will talk in more details about the AMM DEX protocol, which automatically calculates the cost of your assets and turns the decentralized exchange into a convenient currency exchange office. Simply put, an AMM (automated market maker) is a robot that quotes a price for an asset. This is the price for which you can buy or sell this particular asset. This robot also gives you access to the liquidity pools and, consequently, to the cryptoassets available to exchange. On the centralized exchanges (CEX), the price of the asset is determined by the sellers and buyers: the sellers set a price for the sale of their assets, and the buyers