The recent hack of the Binance platform was a rude awakening call in the entire cryptocurrency community. Around 7,000 BTC, more than $40 million stolen from the central exchange.
Although the hacking of the cryptocurrency platforms is not new, the security breach of the Binance platform was particularly appalling because the platform system was able to reach a high level of trust by the user community.
“If it’s not your keys, it’s not your coins,” this is more appropriate than ever. Let’s explore a practical alternative that can guarantee money security by default without compromising your trading experience.
Here are three ways DEXs can keep your money safe and secure. And if you are a Tron tokens trader( TRC10/TRC20), you can use TRXMarket, one of the safest and best DEX based on Tron Network.
1. Your keys, your coins:
Decentralized Exchange (DEX) is a platform that does not require a third party service provider – such as Coinbase or Binance – to collect and retain user funds. Instead, trades occur directly between users through peer-to-peer (P2P) transfers.
Decentralized trading platforms eliminate brokerage and this has serious safety features. First, you no longer need to deposit money into the platform.
Without a central authority to act as a commercial intermediary, you can control 100% of your funds. You control the keys in your wallet, which means you’re the only person who can access your coins/tokens. Unless someone can get your keys or passwords, your money will be safe.
2. With decentralized trading platforms, withdrawals become a thing of the past:
On social media, we have heard nightmare stories about users who can not pull their cryptocurrency from the central trading platforms for several reasons. For example, a Reddit member posts his experience on the HitBTC platform. The investor bought $ 700 for the Bitcoin and tried to withdraw the amount, but there was an error with him and an e-mail explaining how he should complete the KYC process. In fact, this person completed all the steps and sent the documents required by the platform, which included pictures of the person’s home, which is a really strange request from the platform!
In the end, it took more than 22 days in addition to a publication on the Reddit website that was able to put pressure on the platform to release money.
This ordeal does not have to be faced by a crypto-investor. Fortunately, with decentralized trading platforms, you will never have to face such an ordeal. Since you do not have to deposit your money, withdrawals are a thing of the past. Once two parties agree on the deal and enter their keys, the money transfer process becomes almost instantaneous.
3. Decentralized trading platforms have no single point of failure:
In February 2019, suddenly died founder of the platform QuadrigaCX “Gerald Cotten” Gerald Cotten. His premature death has made more than $ 190 million of Bitcoin and other coins available to users of the Quadriga platform of 115,000 users. Apparently, “Koten” was the only person who knew passwords and had access to saved money.
This story shows how weak the central trading platforms are. Nodes and servers may at any time move to maintenance, security breach, or even work of fate! If this happens, users will not be able to access their funds.
With decentralized trading platforms, you will not have to worry about someone dying, running maintenance or server downtime. Decentralized nature ensures that the network will continue to operate even if some nodes fail. Also, the nodes are theoretically spread all over the world. Thus, the other contract can cover the recession that may occur in the case of multiplication of the pot to one location.
In short, decentralized trading platforms re-control users. The security they provide can be an innovation that stimulates and stimulates the issue of collective adoption.
Please note, that is a bit of financial advice, nor the WhaleToBe team’s view