The Problems Of Decentralized Exchanges (DEX)

There are several reasons to give your decision to trade on decentralized platforms some thought. Let's look at their problems.
Some users especially the newbies might not always be aware of the problems of decentralized cryptocurrency exchanges. Any user who wants to interact with the DEX must understand their features in order to be aware of the difficulties he will encounter when working with decentralized exchanges. The main disadvantages and problems associated with using DEXs are that their features is not as simple as that of centralized exchanges. However, the challenges you will face are described in more detail below.

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The Problems Of DEX

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• Customer Support

There is one thing about decentralized exchange, you're completely responsible for everything on the platform, the inability to receive assistance if something goes wrong. All of your actions are solely your responsibility. Most of the time, this is unsuitable for newbies.

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• Incompatible Of The Blockchain

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The incompatibility of blockchains is an additional issue with decentralized cryptocurrency exchanges. This implies that if an exchange only supports the Tron network, your options will be limited to trading and buying Tron-based cryptocurrencies. For instance, you won't be able to directly exchange Tron for Bitcoin. It's especially difficult for newbies.

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• Low Liquidity

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On centralized exchanges, you may theoretically buy and sell an infinite number of assets, but you won't always be able to do so. Typically, liquidity is scarce on decentralized cryptocurrency exchanges, particularly for less popular trading markets. This indicates that a small portion of the asset you want to purchase isn't available in the exchange's pools.

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• Interface

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Decentralized exchanges have more advanced user interfaces than centralized exchanges. You need to understand what a blockchain is, how it works, and what transactions are. Know how to use wallets and how fees work. Being familiar with the exchange's buttons and functions is also compulsory. That is decentralized exchange is not user-friendly for beginners.

Lastly, Many decentralized exchanges do not let traders to create stop losses, place open orders, or trade on average. These are crucial features for many traders, without which it would be impossible to trade and make money.