The recent regulatory crackdown on centralized exchanges (CEXs), Binance and Coinbase, has once again reminded cryptocurrency traders and investors of the potential decentralized exchanges have.
With DeFi exchanges like the outlandishly named PancakeSwap and the newer Tradecurve able fully function despite the regulatory terrain, experts are giving their opinion on what the future of crypto trading could look like.
DeFi Exchanges Like PancakeSwap Fix the Flaws of Centralized Exchanges
The decentralized finance (DeFi) sector has been one of the most talked-about areas of the cryptocurrency industry as it possesses the potential to revolutionize the global financial landscape.
By eliminating the need for third-parties and financial institutions, DeFi has been able to give users a transparent and secure way to access financial services. DeFi exchanges also do not face as many regulatory restrictions like CEXs.
DeFi exchanges like PancakeSwap can offer their services regardless of location or financial status. By fostering financial inclusion and innovation, exchanges like PancackeSwap have been able to allow users to participate in a transparent and inclusive financial ecosystem.
Unlike centralized exchanges like Binance and Coinbase, PancakeSwap also gives individuals control over their funds.
While DeFi exchanges like PancakeSwap have obvious benefits over the likes of Coinbase and Tradecurve, there are some major drawbacks that have prevented them from being called the future of crypto trading.
One, DeFi exchanges like PancakeSwap cannot rival the liquidity of CEXs, and they are more complex for users to operate. To fix these challenges, there is a new wave of DeFi exchanges taking over the crypto space.
A New Wave of DeFi Exchanges Check All the Boxes for the Future of Crypto Trading
To fix the above listed challenges, a new type of DeFi exchanges are combining the best features of CEXs with those of DEXs to achieve a hybrid model. These hybrid exchanges like Tradecurve benefit from the liquidity, ease of use, and security of centralized exchanges and the privacy, transparency, and low fees of decentralized exchanges.
As they are built as DeFi platforms, these hybrid exchanges also incorporate more trading features normally not found on centralized exchanges.
For example, Tradecurve is building the first decentralized trading platform where users will be able to trade a wide variety of financial instruments including forex, stocks, CFDs, options, ETFs, and more from a single account.
By being an all-inclusive trading platform, Tradecurve will be able to cater for the needs of advanced crypto traders.
With no obvious drawback like the regular DeFi exchanges, many market experts have agreed that the hybrid model is the future of cryptocurrency trading.
Changpeng Zhao, the CEO of Binance, the world’s largest crypto exchange, has agreed that the hybrid model is the future of crypto trading, albeit his company has no immediate plan to transition.
However, other top crypto exchanges like Phemex are already in the process of transitioning into the hybrid exchange model.
Learn more about Tradecurve and the TCRV token below:
