Pros of non-custodial exchanges like Uniswap
Most of our readers are used to using only a few cryptocurrency exchanges. As a rule, these are large platforms like Binance, Bitfinex or EXMO. And this is absolutely normal, but for really serious work you have to combine several sites. Newfangled non-custodian exchanges like Uniswap are a good solution. Next, we will tell you what is the peculiarity of such exchanges and whether it is worth starting to use these platforms. Read carefully so you don’t miss anything important. So let’s get started.
First of all, it should be explained why we chose only one non-custodian exchange. The point is that Uniswap is the largest resource of its kind. This site has a huge user audience and popularity in a wide variety of circles. The platform’s functionality is used by both serious and novice traders. A wide variety of users have used the excellent tools presented at Uniswap with success. The popularity of Uniswap is so high that over the past 30 days, transactions worth $1.3 billion have been made on the site. This is proudly announced by the platform developers.
However, most users still don’t know about Uniswap. The reason is that the site is in the shadow of such well-known resources as the above-mentioned Binance, Bitfinex or EXMO. Also a feature of the platform is the very “non-custodian” principle of operation. Let’s dive into theory so that you can understand if using such sites is suitable for your tasks.
What are non-custodial exchanges?
Binance, Bitfinex and EXMO. What unites these sites? They are not decentralized. There are specific offices, specific servers and legal entities that control the platform. This is confirmed by the ability to recover the password from the account. Developers have similar powers. Consequently, site users cannot consider their work completely anonymous and protected from third-party interference. This, of course, has its advantages, like the same ability to recover a lost password. But also the nuances. For example, if the exchange is hacked and the platform creator’s tools are accessed, attackers can freeze accounts and blackmail traders. It’s all about the custodian principle of work. But this will never happen to account holders on Uniswap. The exchange is completely decentralized.
Thus, sites like Uniswap exclude the possibility of third-party interference in the work of their users. No third parties, just you and the market. You can also fully control your account balance, manage finances and conduct full-fledged work with your own money. This is why non-custodial exchanges like Uniswap will become the platforms of the future. Serious traders are gradually getting tired of the attention of the project administration. After all, the creators of the project can make decisions that are unfavorable for users. Everyone wants to trade in a calm and decentralized way, exchanges like Uniswap will help in this. The only caveat is that you must remember all passwords and keys. It is impossible to recover information, so be sure to record such data in safe places.