Over the next few weeks, you’ll hear a lot about how Kelvin is a decentralized exchange and how that’s a lot better than it’s centralized counterpart. But what does this all mean exactly? Is this new type of exchange really better than something like Binance? As always, let’s look at some hardcore facts to help us out.
WHAT IS A DECENTRALIZED EXCHANGE AND IS IT BETTER THAN BINANCE?
To put it in simple terms, a decentralized exchange is an exchange that does not use any third party service to hold the customer’s funds. Instead, trades are made directly between users (Called peer-to-peer transactions) in an automated process. The benefits of these are many but for the most part, users get to control their own funds. They have the power. On top of that, all transactions are anonymous, don’t have any trading fees, central server downtime or any personal documents to submit. Now, let’s see how this compares to an exchange like Binance.
BINANCE VS. A DECENTRALIZED EXCHANGE
As we’ve mentioned, Binance is a centralized exchange where Kelvin is a decentralized one. Binance is simply a website that lets one trade fiat for other cryptocurrencies or other cryptos with each other. These exchanges are easy to use but also have a wealth of advanced features for the more experienced traders. The downsides, however, are many. For one, Binance requires users to submit personal, and private documents. Furthermore, it is not anonymous and is a danger to hacking attempts and server downtime. So, is there a future for the centralized exchange?
WHY THE DECENTRALISED EXCHANGE IS THE FUTURE OF BINANCE
Are you jumping on the dectralized exchange bandwagon? You are not alone in this. Recently, Coinbase, one of the worlds largest exchanges acquired Paradex. At first, this seemed like a simple matter of business but it was far more than that. This was a move to not only make Coinbase a larger entity and expand to places outside the U.S. but it will also help them transform into a decentralized exchange. Wallet-to-wallet trading is the new normal and Kelvin is proud to be a pioneer in this trend in parallel with Coinbase. Are you ready to join us?