• Decentralized Finance vs. Traditional Systems
• Centralized vs. Decentralized Exchanges: What to Choose?
• Risks of Centralized Exchanges (CEX)
• Risks of Decentralized Exchanges (DEX)
• Guide to Using DEX

Decentralized exchanges (DEX) are platforms that allow users to trade cryptocurrencies directly without intermediaries. Unlike centralized exchanges (CEX), where operations and asset storage are managed by a central intermediary, DEX rely on smart contracts to automatically execute trades between users. This ensures greater transparency and eliminates risks associated with custodial management of funds, such as exchange hacks or fraud by the operator.

The modern banking system faces several significant issues: slow transaction speeds, high fees, limited accessibility to services, and regulatory uncertainty. Many people are excluded from traditional financial tools, placing them at a disadvantage.

The decentralized finance (DeFi) movement aims to eliminate these barriers and create an inclusive financial ecosystem free from censorship.

DeFi is not a single product or company. It is an ecosystem of solutions capable of replacing traditional financial institutions such as banks, insurance companies, and bond or money markets. One of the key features of DeFi is the ability to combine various applications and services to create new financial opportunities.

By removing intermediaries, DeFi applications have the potential to completely transform conventional financial services, making them faster, cheaper, and more accessible.

Centralized exchanges (CEX) are platforms where cryptocurrency trading is managed by a single operator. They are user-friendly but require you to entrust your funds to the exchange. These platforms implement security measures like cold storage and two-factor authentication, but risks still remain. To protect your assets, it's wise to store a portion of your funds in personal wallets and follow basic security practices.

Decentralized exchanges (DEX) allow users to trade cryptocurrencies directly without intermediaries. They leverage blockchain and smart contracts, making transactions secure and transparent. On platforms like HoliDEX, users maintain full control over their assets, which is crucial for ensuring the security and freedom to manage funds.

When choosing between centralized (CEX) and decentralized (DEX) exchanges, it’s important to consider the risks associated with each type of platform.

The first step is to select the appropriate platform. Start by determining which blockchain is needed to purchase the desired token. For example, the main network for the STON.fi exchange is TON, while SunSwap operates on the Tron network. However, many DEX platforms have expanded their functionality and now support multiple blockchain networks.

For instance, let’s take the decentralized exchange Uniswap and the native token blockchain Holichain – Polygon. Uniswap supports several blockchains, including Polygon, Ethereum, Optimism, Arbitrum, and Celo.

To begin using a DEX, connect a compatible wallet such as MetaMask, TrustWallet, Tonkeeper, etc.

In the window that opens, find the token you want to exchange, such as DAI. Below, select the token you want to acquire, for example, POL. Enter the desired amount of tokens to exchange and click Review.

Next, confirm the transaction using your wallet.

Congratulations—you’ve completed your first trade on a DEX! The tokens you’ve acquired can be exchanged for others on the same platform or sent to any wallet.

If you want to learn more and try a platform that addresses many common issues of standard DEXs, such as high fees and complex interfaces, check out HoliDEX — a decentralized exchange integrated into the Holiverse ecosystem. It offers a user-friendly interface and unique features for trading crypto assets.

Full guide to HoliDEX.