Decentralized exchanges
Decentralized exchanges are crypto exchange platforms that allow users to buy, sell, send, receive, and trade crypto-related assets in a decentralized system without a central authority. It purely works on a smart contract protocol.
DEX promotes Peer-to-peer trading, enabling users to directly transfer funds from one person to another with no third-party involvement. Yet, it has drawbacks, like users are supposed to deposit crypto into their crypto wallet to make transactions. Also, it requires KYC verification and crypto wallet integration.
I agree with all except the issue of KYC verification. If there is a need for KYC verification then it's no longer a decentralized exchange. Another word for decentralized is trust, confided or bequeathed and if there this level of trust there will be no need for a KYC verification
The benefits that DEX offers are as followsFund Control - Users have direct access to their funds, and there is no central authority that can hold your funds from using them.
Security - Most of the DEX uses a smart contract system that is immutable in nature that prevents scams, thereby offering more safety and security.
Privacy - KYC is not involved here, as mentioned before, so there will be no private information leakage or theft.
Now, one can get a clear idea of how a DEX works and the benefits that it delivers.
Here I have listed some promising decentralized exchanges below,
Uniswap
PancakeSwap
IDEX
Blockchain Firm offers Decentralized exchanges to clients globally.
For more Info:
https://blockchainfirm.io/blockchain-exchange-development-company You got the full points here decentralized exchange is strictly on trust and the privacy of their customers identity is one advantage decentralized exchange have over the regulated centralized exchanges giving the owner of the asset a complete security.