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Cryptocurrency is always changing and evolving. It is a space of consistent innovation, where developers are always devising answers to challenges and finding ways to advance the era of digital banking. The generations of Bitcoin trading are a good example of this evolution in the world of crypto. There are two kinds of bitcoin exchanges: first-generation centralized platforms and the current decentralized exchanges.
Let’s look at the two generations of cryptocurrency exchanges, how they work, important differences and restrictions, and what they provide consumers – so you can select which one you need and start trading with confidence.
Main 5 Differences Between Binance and EGG
1. EGG doesn’t have control over your coins like Binance does
Which means that you have a full control over your private keys on EGG.FI which results in a full control over your assets including coins, orders, NFTs, etc.
This is beneficial when cryptocurrency market is in bear market, most exchanges are temporary pausing withdrawals and you may get locked with your funds which can turn out to be a huge loss to your cryptocurrency portfolio. On EGG.FI, since its a non-custodial DeFi Dashboard, you will be able to withdraw your tokens anytime you want, without any hassle.
2. EGG offers a better security
We are witnessing a huge number of hacked centralized exchanges and the stolen funds are 95% of the time not returned to users which puts centralized exchanges in question about their safety and protection policy.
Since EGG is using a decentralized protocols and smart contracts, attacking and succeeding in breaching its DEX features is not possible which enables a stronger layer of a protection to your crypto portfolio.
3. EGG’s DEX offers a cheaper, faster and more secure trading routes than Binance
This may not be noticeable at the start when you are trading small amounts of crypto on a centralized exchange, but over time, it adds up and once you see how much money you’ve spent on trading fees, you may be shocked.
The routes on EGG.FI are faster, securer and cheaper which means you can swap your tokens for a penny fee and confirm the swap within few seconds. This is very useful for both, small and big investors, but the wealthier investors who do a lot of trading volume can save a lot of money on fees, the money saved from the trades on EGG.FI’s DEX can build up their portfolio.
4. There is no KYC on EGG’s DEX
Decentralized exchanges like EGG are great for worldwide traders, they are able to enjoy trades on multiple blockchains without any limitation, no limit in how much to trade, receive, send, bridge, etc.
While on centralized exchanges like Binance, after some withdrawals and deposits, you have to provide KYC documentation in order to raise the withdrawal/deposit limit which can be limit a lot of users in prohibited countries.
5. Listing a coin on DEX is free while on Binance it costs a fortune
Listing your coin on a DEX is free, easy and fast, you have to submit your token and provide liquidity, then cryptocurrency users can start trading your token immediately or provide liquidity to the available pools. This can be done within one day which way too faster than a listing on a centralized exchange.
On centralized exchanges like Binance, the cost of listing a coin is extreme and a lot of start up projects cannot afford the listing which limits their traders, trading volume, and onboarding new users. Based on a Google search, we saw comments saying that it can cost up to 250,000$ to get listed on Binance, a sum that not a lot of starting projects have it in their beginnings.
DEX or CEX – Which One do you Need?
So there you have it — a quick rundown of the two basic forms of cryptocurrency exchange. With CEX, novice users can take their first steps into cryptocurrency, focusing on trading while leaving the rest of the exchange to the company in control. However, this comes at a cost: DEXs, on the other hand, provide more freedom and perhaps better payoffs for users and opportunities.
Crypto might be a perplexing place to be, but a little research can help. The beauty of cryptocurrency is that it is continuously evolving, discovering solutions to its customers’ problems and seeking to provide more. You can take full advantage of what the business has to offer — not just for your cash, but for your life – with a little education.
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of EGG Finance. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.