Over the last decade, cryptocurrency trading has minted multiple millionaires, with over 10,000 active coins listed both on centralized and decentralized. Because the crypto markets are open 24/7, 365 days a year, crypto traders have more opportunities to grow their portfolios than their counterparts in other financial markets.
However, it has not been all rosy; not many have been fortunate with the market and have lost fortunes in their attempts to succeed in the market. Away with the gloomy talk for now…
While there are several ways of purchasing cryptocurrencies, the most common options are between using a brokerage or an exchange. The most common option is using an exchange, considering they possess qualities of a marketplace where buyers and sellers interact directly with the digital assets. Crypto exchanges also offer more competitive fees than brokers and have lowered the barriers to entry for new users.
Source – Google Images | Exchanges vs. Brokerage
However, as users go down the exchange “hole,” they discover that they have to choose between two options again, where factors like security, fees, asset availability, and others become the central topic.
DEXs – Dex Exchange Are Thriving Where CEXs Lagged
Generally speaking, there are two kinds of exchanges for trading cryptocurrencies: centralized exchanges (CEX) and decentralized exchanges (DEX). While both channels provide decent profit-making opportunities for traders, the former has an obvious setback: centralization.
Source – Google Images | CEXs and DEXs
Despite offering many benefits and being notably more user-friendly than DEXs, centralized exchanges defeat the purpose of using decentralized currencies and the ability of blockchain technology to eliminate third-party intermediaries.
CEXs, the most available trading option today, rely on intermediaries to facilitate transactions, making them vulnerable to hacks and regulatory risks. These platforms typically operate off-chain, making them a kind of escrow provider for crypto investors. This exposes them to security breaches, hacks, and other custodial and privacy issues. This is where decentralized exchanges shine, with more traders trooping into DEXs.
According to a 2021 report from on-chain analytics provider The Block, decentralized exchanges crossed the $1 trillion mark in trading volume in 2021, an 858% increase from 2020. Despite being a burgeoning sector, this niche sector has its shortcomings. For one, DEX traders are often limited to trading within a single blockchain network. As you would imagine, the deficiency makes it difficult to capitalize on opportunities across various DeFi protocols.
Source – The Block | DEX Trading Volume
Interoperability Deficiency Between CEXs and DEXs
While many would argue that DeFi is still a fledgling sector and needs time to grow, innovators in the space need to ramp up efforts to create blockchain solutions that bridge the gap between DEXs and eventually scale up to CEXs. That said, some blockchain protocols, such as AstroTools, cater to this need by improving interoperability between both crypto trading channels.
DEXs are designed to capitalize on some of the benefits of both CEXs by leveraging modern technologies to facilitate transactions more efficiently.
Regardless, the limitations of interoperability between both worlds remain a major concern for many. There have been calls for non-custodial platforms that support assets across both CEX and DEX divides. Such a blockchain solution will allow users more control of their funds and flexibility between platforms, providing a better user experience.
This is where AstroTools (ASTRO) comes in:
The Cross-Chain Solution: AstroTools (ASTRO)
AstroTools has been described as decentralized finance (DeFi) dashboard geared toward bridging the information gap between CEXs and DEXs. This gives users an analytical edge to better handle the complexities of trading the cryptocurrency market and engaging the blockchain and a clear track path to using the Uniswap network.
Source – AstroTools | AstroTools Webage
This platform allows users to aggregate Uniswap and PancakeSwap charts with other desired tokens, providing all the necessary analytics and information.
AstroTools also gives users access to a robust verification system, which allows for the verification of contract addresses and trading pair accuracy to protect users from accidental losses to “duplicative scam coins.” It prioritizes age, liquidity, and trading volume of search results, providing easy links to third-party resources. According to the AstroTools website, the in-built new listing explorer helps users identify suspected scam coins by highlighting liquidity pulls.
Users can strip down a host of tokens to reveal all-encompassing data, such as viewing charts, trade history, and other trading data from as far back as the genesis transaction. All transaction data is curated in real-time directly from the Uniswap API.
Interestingly, users can receive “membership passes” once they hold a certain amount of ASTRO tokens. This feature automatically unlocks more advanced tools for crypto and DeFi trading, which could come in very handy for experienced traders.