scalescore logo Scalescore Account

The rise of DEX after FTX fall

Date: January 5, 2023 Category: Scaleswap rise of DEX after FTX fall

Introduction

The cryptocurrency market has experienced its fair share of ups and downs over the years, and the events of the past few weeks have been no exception. In recent news, the popular centralized cryptocurrency exchange FTX suffered a major outage that left users unable to access their funds and trade on the platform.

The incident at FTX has led many users to consider switching to DEXs, which offer greater security and control for users. DEXs do not hold users’ funds, which means that there is no central point of failure that can be targeted by hackers.

This fact has also focused on the importance of decentralized technologies, such as blockchain, in the cryptocurrency market. Decentralized technologies offer a more secure and resilient alternative to centralized systems, as they do not have a single point of failure and are resistant to tampering and fraud.

To consider

There are several reasons why you might want to consider using a decentralized exchange (DEX)

  • Decentralized control: DEXs are decentralized, which means that they do not have a central authority that controls the exchange. This can be an advantage for users who value privacy and want to avoid the risks of having their funds controlled by a single entity.
  • Greater security: DEXs are generally considered to be more secure than CEXs, as they do not hold users’ funds and do not require users to entrust their funds to a central authority. This can reduce the risk of funds being lost or stolen due to a hack or other security breach.
  • Better compliance with regulations: DEXs can potentially be better able to comply with regulations, as they do not have a central authority that can be regulated. This can make DEXs a more attractive option for users in jurisdictions with strict regulatory requirements.
  • Lower fees: DEXs often have lower fees compared to CEXs, as they do not have the same overhead costs and do not need to generate profits for shareholders.

These factors may make DEXs a more attractive option for users who want more control over their funds and want to avoid the risks and costs associated with centralized exchanges.

Conclusion

For these reasons, it is important to consider the risks of using a CEX and to carefully research and evaluate the security measures that the exchange has in place to protect your funds. If you decide to use a CEX, it is advisable to only store on the exchange the amount of cryptocurrency that you need for immediate trading purposes and to withdraw the rest to a secure, self-custodied wallet.

Related Posts
Examining the Pros and Cons of both Native and Synthetic Cryptocurrencies

Introduction Synthetic tokens, otherwise known as “wrapped” tokens, are digital assets which are established on one chain and symbolize the […]

comparing cbdc and crypto Comparing Central Bank Digital Currencies and Cryptocurrencies

Introduction Central Bank Digital Currencies (CBDCs) are digital versions of a country’s national currency that are issued and backed by […]

ukiss how to guide UKISS IDO on Scaleswap – A Complete “How-To” Guide.

Welcome to the How-To Guide for the UKISS IDO on Scaleswap! Thank you for your interest in participating in the […]

protected launchpad Protected Launch – Powered by Scaleswap

Dear Scaleswap Community! Scaleswap is well known for its fairness and community-oriented approach. We always had the aim to give […]

preIDO pool Scalealpha bossfighters ScaleALPHA pre-IDO pool for Boss Fighters on Scaleswap — A Complete “How-To” Guide.

Welcome to the How-To Guide for the Boss Fighters pre-IDO pool! Thank you for your interest in participating in it […]

upcoming ino Haunted Space INO on Scaleswap — A Complete “How-To” Guide

Welcome to the Haunted Space INO “How-To” guide and thank you for your interest in participating in the INO on […]

GET ACCESS TO
OUR
PRESS KIT!

Use our media library to find all graphics that have been created until now

Access now!
Audit by Hacken Logo

2023 Scaleswap © All rigths reserved

Become a Member in Scaleswap!

Join our mailing list to stay in the loop with our latest news about DeFi, NFT, Infrastructure and Gaming token offerings.