Cardano
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    • Cardano Directory
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  • Creator Guide
    • How To Launch An NFT Collection
      • What Are NFTs
        • How NFTs Work
        • NFTs and Copyright
        • Examples of NFTs
        • Why Create NFTs on Cardano
        • NFT Minting Sites
      • How To Start Minting NFTs
        • Create Your Cardano Wallet
        • Fund Your Cardano Wallet
        • Mint Your NFT
        • NFT Viewing
      • Selling Your NFTs
        • NFTs and Taxes
        • Listing Your NFT
      • Marketing Your NFT Collection
        • Drop Calendars
        • Website
        • Social Media
      • Conclusion
  • Collector Guide
    • How To Buy NFTs
      • How To Buy ADA
      • How To Fund Your Cardano Wallet
      • Find The Right Project
      • How To Avoid Scams When Minting NFTs
      • How To Buy NFTs From An Existing Project
      • Investing With A Plan
      • Conclusion
  • Wallets
    • Overview
    • Reviews
    • Specs Comparison
  • Decentralized Exchanges
    • Overview
    • Specs Comparison
  • NFT Minting
    • Overview
    • Reviews
    • Specs Comparison
  • Primary Marketplaces
    • Overview
    • Reviews
    • Specs Comparison
  • Secondary Marketplaces
    • Overview
    • Reviews
    • Specs Comparison
  • Drop Calendars
    • Overview
    • Reviews
    • Specs Comparison
  • Ranking Tools
    • Overview
    • Reviews
  • NFT Viewing
    • Overview
    • Reviews
  • Token Taps
    • Overview
    • Reviews
    • Specs Comparison
  • Discord Bots
    • Overview
    • Reviews
    • Specs Comparison
  • Info Sites
    • Overview
    • Reviews
    • YouTube
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    • Devs
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  1. Decentralized Exchanges

Overview

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Last updated 2 years ago

Decentralized exchanges are decentralized financial (Defi) platforms where cryptocurrency is traded through peer-to-peer transactions in exchange for other cryptocurrencies for an equivalent value.

These service providers are not governed by a centralized authority — as opposed to a centralized exchange — and therefore require no personal information to set up an account as it works purely through connecting one’s hot wallet.

In many ways, this makes decentralized exchanges safer and mitigates the risk of market manipulation and being hacked as there is no transfer of assets to a third party like with a centralized exchange.

Key Takeaways For Creators and Collectors

Complete decentralization is not possible for the time being as it’s still necessary to use centralized exchanges to initially fund a wallet in exchange for fiat currency, but creators and collectors can benefit from these platforms by being able to:

  • Trade cryptocurrency with cryptocurrency to receive the equivalent value thereof and diversify your portfolio

  • Stake NFTs with selected DEXes to lock up NFTs and get more rewards for not selling them off

  • Incredibly high interest staking to make more cryptocurrency from your portfolio as opposed to simply “hodling” it long-term in your wallet (holding on for dear life)

* high-interest Defi products are risky, DYOR before investing

Want to learn more about decentralized exchanges? Check out our review here.