Why acquiring a Decentralized Exchange Solution will establish a strong future for your enterprise in the industry?

Bitcoin

Bitcoin has rallied close to the $47000 mark recently which is the highest in more than two and a half years. It has outperformed the growth witnessed in Defi tokens and decentralized exchanges.

A combination of factors like more inflow of institutional money and a supply crunch has caused a bullish run for Bitcoin. This has made the notion clear that cryptocurrencies are set for mass adoption soon.

Some of the major issues that cryptocurrency exchanges are facing are

  • Exchanges that do not comply with the KYC (Know Your Customer) and AML (Anti Money Laundering) norms are forced to reduce their scope of operations in jurisdictions where the rules are strictly implemented.
Centralized vs Decentralized

How can a Decentralized Exchange Solution prove to be a viable alternative in this situation?

  • Centralized crypto exchanges suffer from various security loopholes and are often targeted by hackers resulting in fund losses worth millions of dollars affecting both their reputation and credibility. Many top centralized exchanges like Mt.Gox, Bitstamp, Bitfinex, and CoinCheck have been hacked in the past few years.
How does a Decentralized Exchange Works

How does a Decentralized Exchange Solution function?

  • A user can use his/her wallet address to register on a decentralized exchange. There is no formal sign-up process.

The different challenges faced by a DEX Development Company

  • Despite showing promising signs of growth, the liquidity in decentralized exchanges is far less when compared to their centralized counterparts.

Why can a Decentralized Exchange Solution witness strong growth in the years to come?

By enabling users to control their own funds without any intermediaries and by offering top-notch security, they could very well shape the future of the financial system worldwide. As more businesses use blockchain technology in their operations, the holders of digital assets will demand more control and security in their engagement with the different exchanges.

Despite the severe economic crisis plaguing the world, the cost of Defi tokens has grown by more than 100% since the beginning of the year. Many individuals, as well as institutional players, are entering the market now attracted by its immense potential.

They need to solve the liquidity issue sooner than later as orders will take a longer time to be filled keeping new traders away from these platforms. They can improve the user experience by getting rid of the order book or by introducing an atomic swapping facility for traders. Decentralized exchanges will definitely witness a huge rise in popularity as there is a strong future in the business model.

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Aaron Silva is a well-known cryptocurrency consultant specializing in dealing with digital trading businesses. https://www.infiniteblocktech.com/

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Aaron silva

Aaron Silva is a well-known cryptocurrency consultant specializing in dealing with digital trading businesses. https://www.infiniteblocktech.com/