What Is Polkadex (PDEX)? Complete Guide Review About Polkadex.

What Is Polkadex (PDEX)?

What Is Polkadex (PDEX)?

Polkadex The world has transformed in the past few years with lightning speed. The way people conduct financial transactions evolved, as well. A strong need for financial inclusion together with opening the opportunities to preserve capital and generate wealth for people all over the world lead to the birth of a decentralized financial system. DeFi marks the new era of transferring value from traditional finance and preparing the world for a tokenized future. Cryptocurrency markets can be divided into two categories centralized (exchanges that always feature the orderbook) and decentralized (can be with or without the orderbook).

Polkadex In 2020 the blockchain market flourished with many decentralized exchanges and protocols. The cryptocurrency trading community has also grown significantly. DeFi wants and needs to attract users to gain mass adoption, however, it still loses traders to centralized solutions. The modern user has to settle for a compromise instead of a perfect product, no matter whether the choice is centralized or decentralized trading platforms.

Polkadex Storage Key Points

Coin BasicInformation
Coin NamePolkadex
Short NamePDEX
Circulating Supply5,980,965.00 PDEX
Total Supply5,980,965
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

Centralized Markets

Polkadex Centralized exchanges are well-known to any novice crypto trader. They belong to a particular company and require active market-making. The idea of order book markets came from traditional finance. Centralized exchanges are called Order book markets because buyers and sellers can offer prices at which they are happy to buy or sell assets on the exchange, forming a book (or list) of future orders. The trade is executed if there is a match between one user’s buy order price and another user’s sell order price. This matched price becomes the asset’s new market price.

Both participants of the orderbook markets enjoy a wide range of benefits but at the same time have to compromise on some important aspects. Polkadex The main advantages of centralized exchanges are user experience and low latency. Centralized exchanges are usually the most user-friendly, as a big part of their audience is newcomers to the crypto industry. Hence, the design is more intuitive and the platforms are easy to navigate even for traders buying crypto for the first time. Moreover, users can convert their fiat into crypto directly on the exchange.

Disadvantages or question marks in the trading experience

Polkadex Latency means the time that it takes to place or edit an order in the orderbook. Centralized exchanges are fast and can process a transaction in only about 20 milliseconds. The main disadvantages or question marks in the trading experience on centralized exchanges are security and KYC. Being the digital industry crypto has to be resistant to any hacks.

As a trader or simply a cryptocurrency holder, you want to be sure that your funds are always safe and will not vanish from the exchange for any reason. There are two risks here exchange getting hacked because its security was not top-notch and founders of exchange running away with your funds. While the latter can be eliminated by choosing a trusted exchange, the security issue of centralized exchanges does not have any real remedy yet.

Polkadex Hence, keeping your crypto on the centralized exchange you have to fully trust the team behind the exchange and accept that your funds are always at risk. It is a very big ask from the user and many traders resort to moving their funds back and forth between the exchange and cryptocurrency wallets every time they want to trade. Such activity comes at a cost, as traders have to pay the fees for each transfer.

Submitting personal information

Polkadex Another limitation of centralized exchanges is a KYC (Know Your Client) procedure. Each market participant has to go through a thorough process of submitting personal information including IDs to assure data security. While the traders might be comfortable sharing their data for KYC for a good cause, they don’t have full information about its further use. As a user, you definitely don’t want your personal information to be leaked on the Internet or your data to be used for various purposes without your permission.

Decentralized Markets

Polkadex Decentralized exchanges emerged not so long ago to remedy the limitations of centralised competitors. These markets depend on passive market making and are controlled purely by supply and demand or AMM model (Automated Market Maker). Some of the well-known examples of such exchanges are Uniswap, Balancer and Sushiswap. Users of decentralized exchanges can forget about the risks of hacks and non-transparent KYC processes.

Polkadex AMMs allow permissionless and automatic ways of trading digital assets and use liquidity pools instead of a traditional market with buyers and sellers. Liquidity Providers (LPs) are users who supply their crypto tokens and for a liquidity pool. In this case prices of tokens are determined by a constant mathematical formula.

Polkadex Decentralized exchanges are open for trading 24/7 and do not rely on the traditional interaction between buyers and sellers. They are the embodiment of initial crypto ideas no single entity is in control of the system, and anyone can build new solutions and participate. As a user, you trust the code instead of trusting the company.

Trading on a decentralised exchange, users need only to connect their wallet to execute the swap between cryptocurrencies of their choice. Polkadex Funds are not kept on the exchange but move directly to and from the wallet, so security is not compromised at any point of the trading process. As the funds always remain with the user there are fewer risks involved and the whole system stays very secure.