What is the best way to invest in digital coins?

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What is the best way to invest in digital coins?

Cryptocurrency exchanges are platforms that initiate the trading of digital coins. This is better to understand with an example of the stock market. Just as, stock exchanges display the use of stocks, cryptocurrency exchanges handle virtual assets. Cryptocurrencies exchanges are still a relatively new concept yet, and people are yet to get a feel of it fully. However, since a lot of investors are taking interest in crypto exchanges it is important to understand the various types of crypto transactions as well. Decentralised crypto exchanges are one of these platforms.

What are decentralised crypto exchanges DEXs If the name suggests, these exchanges operate in a Decentralised way, without any interference from a third party. Decentralised crypts permit the users to use peer-to-peer p2P transactions. Essentially, this process relies on automated smart contracts. However, all decentralised exchanges do not share the same infrastructure. Some of the famous DEXs include Uniswap V 2 Tokenlon, 0x protocol and Venus.

Why should we make DEXs?

DEXs should be your go-to option if you want to secure privacy, since they are anonymous. Crypto exchanges will ask you to know a customer KYC details, but DEXs work on the basis of anonymity.

Centralised exchanges bear the additional cost of set up and maintaining infrastructure to offer secure services. Whereas, decentralised crypto exchanges work on the principles of automation and self-regulation that make them cheaper comparatively. DEX would help you reduce all the additional costs.

In a decentralized exchange, hacking near impossible becomes risky. What is the best choice for investors who are more concerned about hacking issues? You do not have to exchange assets between them to a third party, which makes it less prone to hacking.

From now on your wallet, you control everything - from checking account to financial institution. To carry out transactions, it doesn't ask you to transfer funds from a wallet or any trading account to a wallet. After all, having an e-wallet, just like in the case of a centralised exchange platform, increases risks.

Having said all this, decentralized exchange comes with its set of disadvantages as well including that it doesn't initiate the trade of fiat currency. Unlike centralized exchanges, decentralised crypto exchanges don't provide friendly features. DEXs can be full of complexity.