Why entrepreneurs pick decentralized exchange?

Starting a Decentralized exchange is the most interested crypto business idea for many entrepreneurs. Due to the reasons like less security breach, less maintenance and low operational cost, they are ready to jump start with the help of backend decentralized exchange script developed by Companies like Hivelance. Decentralized exchange script combines all the essential things like decentralized exchange smart contract, decentralized exchange api, Decentralized exchange source code in it. Let's see how the protocol is used in DEX.

Decentralized Exchange Protocol

Decentralized exchange works the opposite way how centralized exchange operates. It is the platform that facilitates the peer to peer transactions of cryptocurrency while maintaining the assets in users' individual wallet. Importantly, only crypto to crypto exchange is possible in DEx whereas Fiat-crypto exchange is possible in CEX. That’s why Decentralized exchange is meant for advanced crypto traders who have the experience in it.

Business model of Decentralized exchange

Transaction fees

Users in the decentralized exchange are charged with 0.01% of transaction value. The smart contract is written and defined to execute the process automatically. No alteration is carried.

Crypto Listing

The token owners can list their coins in the decentralized exchange by offering a particular fee. Some exchanges are levying a revenue sharing option in the coin enabled. Coin owners pay a percentage of commission for every coin sale.

Market making charges

To enable the liquidity pool in DEx, users are given permission to invest & hold cryptocurrencies in trading pairs to earn the interest from it. Users are then assigned with transaction fees when a smart contract executes.

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