At this moment, I want personally to explain why DEXs (Decentralized Exchanges) will be the best option for cryptocurrency trading and what are the full advantages Local Token Exchange future architecture offers in comparison to traditional centralized and decentralized exchanges.
The DEX, is very useful for the Crypto traders in terms of fee cost. With using DEX, we can adjust manually the fee. That’s why many crypto users seems love to trade their crypto assets on decentralized crypto exchanges.
Why we need decentralize exchange?
Blockchain and cryptocurrency technology is formed by the community. The community takes a very important role in the survival of the Cryptocurrency ecosystem. I personally see many Crypto projects that fail because they have a bad team and community.
Dex allows the crypto community to exchange their assets directly, without any central parties intervening. It also makes it easy for users to liquefy their assets to anyone without any complicated regulatory restrictions.
1. Minimize fees
Centralized exchanges are run by a profit-oriented company that gets revenue from their platform’s fee structures. Centralized exchange revenues are highly dependent on user Fees. Because with the fee they can finance operational Exchanges. They must pay the salaries of employees, buy new server devices, and perform maintenance periodically.
The big advantage of centralized Exchange is, they have pair with FIAT currency. It is very helpful for Crypto users to stabilize their assets when the market is in “Bearish” condition. Users will very easily exchange their assets to FIAT currency. I hope some DEX platforms can implement this system, which is PAIR feature with FIAT currency.
The picture above is some of the Fees data from a centralized exchange. I took samples from Bittrex, Binance, Bitz, and HitBTC. I often use those exchanges for trading. So, the data is very valid until today.
If we convert the fee amount into USD, with current price of ETH, the fees worth around $3-$5. So i think the fee is very high. The problem is, we can not liquefy our assets in small portions. We must liquify our asset with a big portion at centralized exchanges, so we do not have to waste our fees.
On the other hand, a truly decentralized exchange like Local Token Exchange works in a distributed way through a blockchain, with orders and information routed in a peer-to-peer protocol. With that method, I do believe that Local Token Exchange would eliminate the fees problem.
2. The huge demand for token listings
I have been following many ICO projects since 2017. I saw that a lot of ICO is very difficult to get into big exchange sites. On average, large exchange sites have a large fee for entering tokens/coins into their sites.
Based on this source, only 22% of ICO projects successfully registered their tokens on exchange sites in Q1.
Therefore, DEX is the right solution for the future of the ICO project. The problem, currently DEX is still less desirable of the Crypto user because of its very small trading volume. It is a great challenge for the Local Token team to overcome it.
Local Token Exchange will connect buyers and sellers directly
All right, now I talk about their features. Based on their site, the platform seems will give us a simple app. It only take around 5 steps to complete the transaction. We only need to sign in, explore, trade and escrow transaction.
Honestly, I would like to see and try their MVP, But apparently, the team has not been able to show it to us.
Based on that page, I also notice that they “will allow traders to buy and sell a diverse range of cryptocurrencies”
Actually, I would like to know more details about that. Can we trade in coins or just tokens? I hope the Local Token Exchange platform can do both of it.
Local Token Exchange also will offer these kind of features on their platform:
- The possibility to trade a comprehensive range of cryptocurrencies
- Combined with the deep liquidity normally offered only in centralised exchanges
- Fast and easy KYC/AML verification process
- Pay regular dividends
- Future cryptocurrencies by allowing ICO airdrops
The team will hold ICO crowdsale to finance the project. Their ICO process will be divided into two stages, it will be Pre-ICO and main ICO.
The pre-ICO will be started between July 30, 2018 – August 30, 2018. The main ICO will be started between August 31 to September 5, 2018 (stage 1), September 6 to 10, 2018 (stage 2).
If you are interested in this ICO project, please do not hesitate to dig deeper into their information at the following links.
Website: https://localtoken.exchange | Telegram: https://t.me/localtokenexchange | Medium: https://medium.com/localtokenexchange | LinkedIn: https://linkedin.com/company/local-token-exchange | Facebook: https://fb.me/LocalTokenExchange | Twitter: https://twitter.com/Local_Token | Instagram: https://www.instagram.com/localtokenexchange/ | Github: https://github.com/localtokenexchange/Smart-Contract/blob/master/LTE.sol | Whitepaper: https://localtoken.exchange/LTE-white-paper.pdf
written by: bountyhive.io/r/DiamonDogs