Knaken's decentralized cryptocurrency exchange

On this page, we explain what a decentralized exchange is, what advantages it offers over centralized exchanges, and the benefits that Knaken's decentralized exchange provides.

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What is a centralized exchange?

Trading cryptocurrency is most accessible through a trading platform that we call an "exchange." Such an exchange makes it possible to easily and quickly buy and sell cryptocurrency for the current market price. The most popular exchanges within the crypto sector are currently Binance and Coinbase; however, these exchanges have some drawbacks.

For example, these exchanges are centralized. This means that a single company, in this case, Binance or Coinbase, facilitates the transactions between buyers and sellers. When you buy cryptocurrency via a centralized exchange, your cryptocurrency will be deposited in your exchange account. The big drawback here is the fact that you do not have access to the private key of the wallet in which your cryptocurrency is stored.

Binance does have access to that key. The attentive reader will probably already realize that this makes exchanges like Binance, an attractive target for hackers. After all, the exchange has the private keys of all cryptocurrency of its customers. Decentralized exchanges stem from the developments of blockchain technology that have taken place over the past few years.

The benefits Knaken's decentralized exchange offers:

• It is 100% anonymous,

• Low trading costs,

• Control over your own money with your private keys,

• 100% decentralized,

• Unhackable

Knaken's decentralized cryptocurrency exchange

Knaken offers a decentralized cryptocurrency exchange on which traders can trade directly, or peer-to-peer, with each other. They have access to their private keys, making the cryptocurrency safe at all times. In other words, a transaction on Knaken's exchange is not handled by Knaken but by a decentralized blockchain, directly from your wallet. Knaken only offers a handy interface on which you can place orders, after which they are processed directly with a buyer or seller via the blockchain.