The decentralized cryptocurrency exchange Binance DEX review: trading, commission, how to trade, reviews on the Binance DEX exchange
It is worth remarking that the community was divided into two camps: the first considers DEX a very promising project this year, the second believes that the new site is a commercial project, and only its creators will benefit from it. In our article, we will not take sides; we will only try to look at the situation from different angles.
Story of creation
Initially, rumors that Binance is starting to develop a decentralized cryptocurrency exchange appeared in the spring of 2018. But official confirmation from company representatives was made only in December last year. In February of this year, the first beta version of the platform was launched, and the official opening of the platform took place on April 23, 2019.
The great popularity of the Binance brand, as well as good expert reviews about the Binance Chain blockchain, had a positive effect on the promotion of DEX. Note that tens of thousands of people registered on the exchange literally in the first hours after launch. Such popularity was provided that at that time there was even no opportunity to trade. Only one single Binance Coin token was available to users. Trading on the exchange started only two days after the opening, April 25, after these users began to behave tens of times more actively.
The daily trading volume of $1 million at DEX was overcome in the first few days, and in almost a couple of months, the site crossed the line of $10 million and thereby entered the TOP-10 of the largest cryptocurrency exchanges in the world.
The decrease in activity occurred in early June when the company announced the finish of work in more than 20 countries. Later, a Binance CEO Changpeng Zhao said that residents of certain jurisdictions would not actually be able to visit the exchange website, but they would be able to continue to work with the service using cryptocurrency wallets that are compatible with Binance Chain. Besides, all users can circumvent this limitation by using a VPN or proxy server.
What coins are available on Binance DEX?
As of the writing of this article, 61 cryptocurrencies are listed on the exchange. In the majority, these are tokens that ensure the performance of new crypto startups. For example, Contentos, TrueChain, Atomic Wallet and many others. Stablecoins of the main coins has been created for faster trading.
It is worth noting that the vast majority of projects whose tokens are on the DEX list received good reviews from Binance specialists. As a rule, literally immediately after listing on this exchange, these tokens significantly increased in price. At this point in time, UGAS, Contentos, and, of course, BNB are the record holders in trading volumes on DEX.
Security Level of Binance DEX
The increased interest in DEX can be explained by two factors: the popularity of the main Binance exchange, as well as decentralization. The above features make this site one of the safest in the industry. It concerns especially decentralization since after the May hacker attack on Binance it became obvious that absolutely any exchange can be hacked. Accordingly, the best way to secure the funds is their decentralized storage.
Binance DEX Benefits and Trust Wallet Features
Benefits of decentralization:
- private keys are with users;
-
the central server has nothing to do with wallet accounts;
-
in case of breaking one wallet, others will not suffer, as they are not connected to each other.
Key Features of Binance DEX
Binance specialists have developed the Trust Wallet for the new exchange. The DEX trading functionality was integrated into the mobile application of this wallet. If for some reason the user does not want to work with Trust Wallet, then one has the opportunity to trade on the platform using any other wallets that are compatible with the Binance Chain blockchain. There are now more than ten variants on this list, including well-known products such as Coinomi and Exodus.
One of the main features of the Binance DEX exchange is its speed. The fact is that transactions in the blockchain occur after only one confirmation, and the generation of new blocks occurs at a speed of 1 block/sec. Note that this is approximately 600 times faster than on the Bitcoin network. It appears that this exchange has no problems with scaling, respectively, it should work smoothly even under high load conditions.
Besides, this exchange possesses small commissions:
- 0.04% if to pay BNB;
-
0.1% if paid with other cryptocurrencies;
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multi-transit traders are offered discounts up to 20%.
Disadvantages and Limitations of Binance DEX
Disadvantages of Binance DEX
Not enough tools
The platform supports exclusively limit orders, that is, traders cannot place Stop-loss, etc. In general, DEX tools are significantly inferior to almost all major cryptocurrency exchanges.
A small number of currency pairs
Despite the rather small list of available coins, a small number of currency pairs are traded on the exchange, and BNBs are their vast majority. Users say that to exchange one token for another, they first have to purchase BNB, and only then buy the proper coin. This feature is most criticized by the crypto-community. Users say that the main goal of creating the DEX exchange was to popularize its own BNB token. Experts believe that the need to buy Binance Coin to trade on DEX may cause an artificial increase in its rate.
Lack of decentralization
Many users claim that the Binance DEX exchange is not so decentralized as its creators say. The fact is that 40% of all issued BNBs are tied to Binance wallets, so it appears that the company controls the majority of validator nodes on the network. The company is aware of the existence of this problem and they want to choose other validators, which will make the BNB network absolutely decentralized in the future. But they do not specify the time frame for this issue.
Conclusion
The Binance DEX project certainly deserves attention, since dozens, if not hundreds of top developers in the world were involved in its development. But now it is too early to talk about the future of the exchange, at the moment, many people are attracted by the reputation of the famous Binance brand, as well as the innovativeness of their original Binance Chain blockchain. Only closer to the end of this year, it will be possible to give any final verdict to this project.
Mentioned in this article
- Binance CoinBNB $745.36 -0.15%
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