A decentralised exchange, or DEX, is an exchange that does not rely on a third party to hold users’ funds. Instead, trades are executed through an automated process by a network of nodes. It removes trust in a single party and can provide more security against attacks.

Because DEXs are decentralised, they do not require users to create accounts or verify their identities. It makes them ideal for buying and selling cryptocurrencies anonymously. 

Additionally, because no central authority controls the network, DEXs are often cheaper and faster than traditional exchanges.

However, because DEXs are decentralised, they also come with some risks. For example, because no one party controls the network, it is not easy to recover funds you lost if hacked. Additionally, there is less oversight when trading on a DEX, leading to fraud or manipulation.

In cryptocurrency Germany, decentralised exchanges are available through various platforms, but one option is cryptoBridge. This DEX allows users to trade anonymously and store their private keys in their local wallets – making it just as secure as traditional exchanges. 

DEX pros and cons

Pros:

• No 3rd party can take your funds from you; it’s a direct P2P trading platform
• Usually, the fees are lower

Cons:

• The transactions take longer because there isn’t any intermediary to process them faster. It’s because the records of all transactions between buyers and sellers are saved in a public ledger, which makes them available for everyone on Earth. To make a transaction visible to others, you have to wait till it’s added to the blockchain, and then others can see it too. Until then, your transaction will stay visible only for you, and once people start mining it, other users will be able to track down the information.

• Many people don’t know how to use decentralised exchanges, so the user base is still relatively small.

DEX drawbacks

Overall, decentralised exchanges provide a more secure way of trading cryptocurrencies and usually have lower fees. However, the drawback is that transactions can take longer because a third party does not process them. Most people do not know how to use decentralised exchanges, and the user base is still relatively small. Despite this, decentralised exchanges are growing in popularity as people become more aware of their benefits.

How to use DEX

To use this exchange platform:

1. Download the appropriate version for your computer from the website’s download page.
2. Open it up once you have installed it by navigating to the homepage and clicking ‘New Account’. Create a new password when prompted.
3. Write this down and store it in a secure place – if you forget your password or lose your private key, your funds are at risk.
4. Once that is complete, use the search bar on the top right to locate NEO, GAS or whatever CryptoCurrency tokens you wish to purchase. 
5. Once found, enter the amount you would like to buy and click buy – your order will be fulfilled almost immediately through an exchange with another trader on the DEX network. 

If the price changes before your order is filled, it will expire instead of changing you overpaying for each token bought under current market value. You can use the exact process to sell your tokens for a profit.

Withdraw funds from DEX

To withdraw funds from the DEX, send them to an external wallet you control. Like all exchanges, cryptoBridge charges 0.05% fees on each transaction carried out by users on its platform. However, these are paid in the same CryptoCurrency being traded so that they are minuscule at most exchange rates. Users who choose to pay these fees with BCO can get up to 50% off, making it easier and cheaper to buy larger quantities of tokens in one go.

In conclusion

There are other decentralised exchanges available in Germany. However, cryptoBridge has proven to be one of the most accessible platforms in use today due to its user-friendly interface, which allows easy navigation without any previous knowledge of trading. Once users familiarise themselves with the platform, they can take advantage of its speed and anonymity to buy and sell tokens quickly and cheaply with minimum fuss.