Centralized exchanges are managed by a company or person, your data is stored by this company. They are responsible for protecting user data and transaction information and control the platform in general.
A decentralized cryptocurrency exchange (DEX) is a platform operated without a central authority or corporation. In other words, it does not use a third-party to hold your crypto assets. Rather, you keep your crypto in your own private wallet and trades are completed peer-to-peer using an automated process.
There are several benefits when using this type of exchange:
🔹More trust, less hacking: users do not transfer their crypto to the exchange, therefore removing the possibility of theft by hackers.
🔹More privacy: Many centralized exchanges, such as Coinbase, require you to provide Know Your Customer information which can include a mailing address and even your social security number. Decentralized exchanges do not usually require this unless there are fiat bank transfers involved.
🔹Less price manipulation or fake trading volume
🔹Stable hosting: Generally, nodes used to run the exchange are decentralized, thus limiting or eliminating server downtime.
One example that the crypto community was eagerly waiting for was Binance DEX which launched in early 2019. As the world’s largest exchange by volume, Binance has not been invulnerable to hacks. This is likely why the CEO decided to create a DEX, to provide users with more security and privacy. DEX is becoming more popular and will continue to gain market share and liquidity as more individuals learn about, or experience, centralized exchange hacks.
If you already have an account for Binance DEX, you can easily connect it on “My Exchanges” section or you can also sign up on Binance DEX via 3Commas.
On this https://3commas.io/accounts page choose “Binance DEX” then click on “Sign up at Binance DEX”.
We wish you all the best, 3Commas team.