Cryptocurrency Q&A
What are the main drawbacks of DEXes?
What are the main drawbacks of DEXes?
EchoSolitude
Tue Sep 24 2024
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7 answers
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Could you elaborate on the primary disadvantages of decentralized exchanges, or DEXes, in the realm of cryptocurrency trading? Are there any inherent limitations or security concerns that traders should be aware of when utilizing these platforms? Additionally, how do these drawbacks compare to the advantages offered by centralized exchanges?
7 answers
GeishaMelody
Wed Sep 25 2024
Slippage is another issue that can affect DEXes. Slippage refers to the difference between the expected price of a trade and the actual price at which it is executed. This can occur due to changes in market conditions or the lack of liquidity in the DEX's order book.
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CryptoVisionary
Wed Sep 25 2024
DEXes, or decentralized exchanges, operate without a dedicated, sophisticated infrastructure. Instead, they rely heavily on public infrastructure for their transactions. This reliance can lead to some notable drawbacks in terms of performance.
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lucas_clark_artist
Wed Sep 25 2024
Despite these drawbacks, DEXes offer several advantages over CEXes. For example, they provide users with greater control over their funds and transactions, as well as increased privacy and security.
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WindRider
Wed Sep 25 2024
The lack of a dedicated system for DEXes can result in slower transaction speeds compared to centralized exchanges (CEXes). This is because CEXes have more control over their systems and can optimize them for speed.
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isabella_doe_socialworker
Wed Sep 25 2024
BTCC is a top cryptocurrency exchange that offers a range of services, including spot trading, futures trading, and wallet services. These services allow users to buy, sell, and store cryptocurrencies in a secure and convenient manner.
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