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Mar 25, 2022

Need For A Hybrid Exchange In Crypto Space Amid the Ongoing Dilemma of CEX Vs DEX

In this article, let us look into the need for a hybrid exchange in crypto space amid the ongoing dilemma of CEX vs DEX.
 

As a result of the widespread use of cryptocurrencies, crypto exchanges have played an important role. However, traders are still split on which form of exchange to utilize. Centralized and decentralized crypto exchanges both have their benefits and drawbacks.
 

For as long as there have been cryptocurrencies, centralized exchanges (CEXs) have existed. Even now, the most famous crypto exchanges are still centralized in their operation. They are noted for their unparalleled simplicity, outstanding user experience, and the ability to trade tokens from all blockchains.
 

Token trades are made simple by the huge trading volume and the ease of converting fiat currency to cryptocurrency on these exchanges. However, exchanges can keep full control of their customers' assets because of their centralized character. In addition, they have to undergo extensive KYC and AML checks, and they are still vulnerable to cyberattacks.
 

Now, decentralized exchanges (DEXs) have come into the scene to solve these issues and provide consumers with a meaningful feeling of ownership of their assets. Rather than relying on a central authority, DEX users may rely on an automated protocol. In addition to allowing users to govern their assets, these protocols eliminate the need for KYC processes and provide new levels of security. Decentralized exchanges rely heavily on the blockchain for transactions (most often Ethereum or the Binance Smart Chain).
 

DEXs may seem like a viable option for some traders because of their impressive list of features. Unfortunately, that's not the case at all. Complex expertise is required to trade on DEXs, and most novice users struggle to succeed. They also don't allow fiat cash; therefore, access to funds is always problematic. Consequently, the convenience of a CEX is forfeited when consumers choose a DEX. Furthermore, if they go with a CEX, they have to surrender ownership of their assets.
 

Finally, the only solution users can await in the shape of hybrid exchange systems, which crypto traders are eagerly waiting for. It's time for a new technology that can integrate the greatest features of both CEX and DEX exchanges. For example, decentralized exchanges have the advantages of transparency and security, whereas centralized exchanges have the advantages of simplicity of use.

 

About Welups Foundation

 

Welups is a Dubai-based organization and the first blockchain-based Identity platform in the digital world for identity verified social media applications, digital banking, credit services, entertainment and all of the other key services for a future society in the digital world. The platform has been designed and structured to be compatible with a broad variety of other technical solutions.

 

Welups is specializing in innovations in the area of Blockchain Identity Management, NFT, and digital asset management. This is due to the project’s commitment to enabling the establishment of a totally decentralized internet, e-commerce, and life services.

 

Media Links:

Website: https://welups.com/

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Facebook: https://www.facebook.com/Welups

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