DEX vs CEX: How not to Wake Up Deceived

Let’s take a traditional bank for example. When you keep money in your bank account, your balance is actually in the financial institution's system. This means that the bank has complete control over your funds and can freeze the account or apply other restrictions at its discretion.

Imagine you have a digital wallet that you connect to a decentralized exchange (DEX). Your cryptocurrency assets are not stored on servers, but they remain with you, under your complete control.

Neither the exchange nor any government agencies can freeze or restrict access to your funds, because they simply do not have this ability.

“Now it’s clear why businesses choose decentralized exchanges. Yes, you say, centralized exchanges seem more convenient, attractive and easier to manage. However, their advantages end there,” Lado Okhotnikov, СЕО Meta Force. 

You can be sure that it will not be scammed or closed. After all, who knows what could happen tomorrow - Binance is a good example of this.

Naturally, DEX exchanges are receiving increased interest from large holders and retailers. After all, they do not store user assets in their systems, but act only as an intermediary between market participants. This means that neither developers nor government agencies can freeze funds in user accounts or impose other restrictions.

But, as with any story, there is a downside. However, if you are not a trader, not a speculator, but an ordinary user, the lack of Limit or Stop Loss options is not a problem for you at all, and a transaction without “leverage” will not upset you at all.

But you will be sure that your money is yours, and not someone else’s. 

Are decentralized exchanges legal? Lado Okhotnikov says that everything is within the law

Decentralized exchanges will always remain within the legal framework, since they cannot be blocked or “tamed”, as happened to Coinbase. 

DEX exchange Uniswap ranked first in terms of trading volume in February 2024

Yes, in September 2021, the SEC began investigating Uniswap Labs for allegedly selling unregistered securities and violating anti-money laundering laws. However, Uniswap still continues to function normally without any problems. And statistics only confirm this fact.

Decentralized exchanges with *AMM technology have become popular among millions of users, attracting significant investments and becoming an integral part of the DeFi and cryptocurrency market.

*AMM is a method of trading on decentralized exchanges, where prices for cryptocurrencies are set automatically by an algorithm, not by traders. It uses liquidity pools to execute trades, where users can deposit their assets and receive shares in the pool for it.

Additionally, some centralized exchanges have introduced their own DEXs. Binance has a Binance DEX; OKX has an OKX DEX and Bybit — Cetus. 

In the future DEXs can be expected to expand functionality for traders and improve cross-chain interaction for exchanging assets between different blockchains.

In light of this, it is not surprising that Meta Force is following with other major participants in the cryptocurrency market.