![\"Are](\"http:\/\/esterlund.com\/blog\/wp-content\/uploads\/2019\/06\/Are-Decentralized-Exchanges-The-Future-Of-Cryptocurrencies.jpg\" "\\"Are")
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Source: Why Are Decentralized Exchanges The Future Of Cryptocurrencies?<\/a><\/em><\/p>\n Do you know\u00a0centralized cryptocurrency exchanges<\/a>\u00a0are not really\u00a0THAT<\/em><\/strong>\u00a0safe for your cryptos?<\/p>\n If you know that, then that\u2019s good.<\/p>\n But if you don\u2019t know that, then you should educate yourself more!<\/p>\n Using\u00a0cryptocurrencies<\/a>\u00a0means\u00a0being your own bank<\/strong>\u00a0and taking care of your own crypto funds. But when we use centralized exchanges like Bittrex or Poloniex, we actually jeopardize that fact.<\/p>\n Because from the moment we start using these centralized exchanges, they become the custodians of our funds, and we are no longer in charge.<\/p>\n For the uninitiated, centralized exchanges are exchanges that don\u2019t allow users to control the\u00a0private keys<\/a>\u00a0of their crypto funds, and instead, they keep those keys in a centralized server or database. This way of working opens up the possibilities of single points of failures and hacks by malicious actors. (Read more about\u00a0private keys here<\/a>.)<\/p>\n You can read about a few such hacks here:<\/p>\n I think about what an irony it is for decentralized currencies to fall prey to centralized exchanges\u2026<\/p>\n And if this continues, what will be the future of cryptocurrencies?\u00a0<\/em>And what\u2019s the solution?<\/em><\/p>\n The solution is having decentralized exchanges (DEXs).<\/p>\n List of DEX (Updated)<\/p>\n This will, I believe, ultimately decide the future of cryptocurrencies.<\/p>\n A decentralized crypto exchange is many things, but I believe an exchange that has following features qualifies to be a DEX:<\/p>\n Benefits Of DEXs<\/strong><\/p>\n Pic Credits: CryptoCompare<\/p>\n<\/div>\n Decentralized exchanges have many benefits.<\/p>\n Some of which are:<\/p>\n Drawbacks Of DEXs<\/strong><\/p>\n Pic Credits: CryptoCompare<\/p>\n<\/div>\n DEXs also have downsides.<\/p>\n Some of the drawbacks are:<\/p>\n After reading the downsides of DEXs, you might say that DEXs will not be successful\u2026 but I think they are the only way that cryptocurrencies can survive and thrive.<\/p>\n The kind of benefits that DEXs\u00a0provide will ultimately dwarf the shortcomings.<\/p>\n And recent events like the\u00a0China ban<\/a>, the\u00a0Korea ban<\/a>, and the\u00a0Russia ban<\/a>\u00a0are catalyzing the need of developing DEXs more than ever.<\/p>\n And this catalyzation is already witnessing a rapid proliferation of DEX projects in the crypto space.<\/p>\n Here is a list of a few promising projects that are on my radar and are in different stages of development.\u00a0(I am going to discuss some of these exchanges in detail on\u00a0CoinSutra<\/a>\u00a0in the near future, so stay tuned.)<\/em><\/p>\n And the surprising thing is that all these projects have entered the crypto-sphere in the last 6-8 months, which in itself speaks a lot about the serious sentiments\u00a0that this market has toward cryptocurrencies and other decentralized assets.<\/p>\n And last but not least, by seeing the proliferation of so many decentralized exchange projects, I am pretty confident that we are going to witness a competitive product in this vertical very soon in the\u00a0next<\/em>\u00a06-8 months.<\/p>\n Now it\u2019s time to hear from you:<\/strong>\u00a0What do you think about the future of DEXs? Which DEX project are you following\/using? How has your experience been? Did I miss any good DEX projects in this list? Do let me know your thoughts in the comments section below!<\/p>\n<\/div>\n\n
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What Is A Decentralized Cryptocurrency Exchange (DEX)?<\/h2>\n
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![\"Benefits](\"http:\/\/esterlund.com\/blog\/wp-content\/uploads\/2019\/06\/Central-vs-Decentral-1.jpg\" "\\"Benefits")
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![\"Drawbacks](\"http:\/\/esterlund.com\/blog\/wp-content\/uploads\/2019\/06\/Central-Vs-Decentral-1-1.jpg\" "\\"Drawbacks")
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Future Of DEXs And Reality Check<\/h3>\n
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