DeFi dydX, CEX vs. DEX – It is common to oppose our cryptographic universe to traditional finance. In fact, the origin of bitcoin brings with it the basic principles that are the origin of the disruptive blockchain ecosystem: decentralization, anonymity and ownership. However, this absence of an intermediary makes it difficult to access cryptocurrencies. So DEXs, decentralized exchange in English, is still often avoided by holders of digital assets. Most of them prefer the simplicity of CEX (centralized exchange), at first glance more capable of taking on the heavy task of mass adoption. Unfortunately, from Celsius to FTX again this week, the news never stops showing us the centralization defects. A provincial highlight for platforms like dYdX that offer another model, safer, because it is more decentralized.
Le Journal du Coin offers you this promotional article in collaboration with dYdX.
Centralization and Decentralization: the brothers and sisters of the cryptocurrency
Centralized cryptocurrency platforms
You know them all. Binance, Kraken or even Uniswap. These popular and centralized platforms are business models such as stock exchangesand sometimes even a bank.
The advantages highlighted by CEXs are many. Transaction speed, ease of use, fixed fees, the centralized exchange makes theintermediary between your cryptocurrencies and you. It offers you a simplification of the process. It stores your digital assets. In short, it works for you. In fact, it is common to hear that CEXs are most suitable places for beginners.
But, and the news of pFTX centralized platform proves it to us again today, centralized platforms can pose serious risks to your funds. Like the nightmare experienced by the users of the exchange being run Sam Bankman-Fried. Centralized platforms are for-profit businesses. Their main goal: serving the interest of society. Also, scams exit scam and so on ponzi pyramids all examples illustrating the faults of a centralized system.
Privileged mediators of a running regulation, CEX illustrates and operates ideas that, on the contrary, contrary to the philosophy and principles of Satoshi Nakamoto, the creator of Bitcoin. Restricted, limited, controlled, users of cryptocurrency platforms cannot benefit from all the opportunities of DeFi, decentralized finance.
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Decentralized cryptocurrency platforms
In contrast, the decentralized crypto platforms (DEX), like dYdX, is rethinking the idea of exchange and traditional finance. They redraw the concepts of ownership and allow their users become actors in their investments.
the DEX benefits a lot too. Users have their own private keys. Therefore, they remain anonymous and keep their personal information. In addition, they are actually less exposed to cyberattacks. Thanks for this method, dYdX proposes to facilitate access to DeFi so that everyone can benefit from these very useful protocols quickly.
In fact, still embryonic, the decentralized financial platforms faces difficulties that dYdX makes it possible to avoid: limited functions, complex interfaces, dangerous manipulation for beginners. Their offers are no less interesting: profitable returns, possibility to change your cryptocurrencies (swap), access to decentralized applications (DApps) all benefits that make DeFi platforms valuable for our ecosystem.
dYdX: the advantages of DeFi without limitations
The simplicity of CEX, the revolution of DEX
DYdX thus allowing us to lift the clichés and understand that DeFi can be accessible, even to beginners!
Currently at transition from Ethereum blockchain to Layer 2 StarkEx (we will return to it), the dYdX platform for its v4 (whose mainnet will be deployed in the second quarter of 2023) in full capacity to offer the following services:
- space;
- Margin trading;
- perpetual contracts;
- staking (passive income in native dYdX cryptocurrency).
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In other words, dYdX opens a decentralized path for you with the aim of allowing you to make the most of DeF, inoriginal spirit of freedom that saw the birth of blockchain technology. The anonymity allowed by the platform and the fact of having the private keys of the wallet where your funds are stored ensure that you can fully enjoy the joys of decentralization, without restrictions.
In addition, dYdX allows its users to enjoy a power to manage, another major innovation made possible by decentralization. The dYdX Foundation, Decentralized Autonomous Organization (DAO) thus ensures that users can vote on decisions, changes and development of the platform.
The platform’s cryptocurrency, DYDX, finds all its usefulness and importance here. It allows its holders to vote on proposed changes to the protocol. Obviously, at With great powers come great responsibilities. So be sure to note your ” seed word” (hidden phrase), the platform cannot give you a copy if you lose it.
dYdX: DeFi and security for your funds, at a lower cost
Originally built by EthereumdYdX chose to deploy to StarkEx. This is a second layer solution called “Layer 2“. Secure, the decentralized platform allows you to avoid using the Ethereum blockchain to transfer your funds. This sometimes has excessive gas costs. Otherwise, deposits and withdrawals are tax freeunlike a CEX.
You will thus be able to benefit from a wide selection of cryptocurrency (36 different cryptocurrency pairs). In addition, transactions are available at a lower cost. That is currently not possible with a centralized exchange.
As you can understand, the advantages of a decentralized platform like dYdX are huge. Enjoy the return of your cryptocurrencies at a lower costearn cryptocurrency as a staking reward, in just a few clicks, all without KYC and without handing over your crypto to a third party.
In a chaotic context, discussing definitions, the basics of what is a DEX and a CEX seem important to us. Once the shots are taken, and after further research, you will see that dYdX offers a truly relevant solution. A simple decentralized exchange, where you are a managing actor. The dark news of today reminds us of the importance of doing your own research. We suggest you start here by checking yourself on the seriousness of this decentralized platform our dYdX tutorial.
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