CRYPTOCURRENCY AND A PLATFORM FOR CREATING DECENTRALIZED ONLINE SERVICES

Abstract

The article examines cryptocurrency and the primary platform for creating decentralized online services. A cryptocurrency exchange is any service that connects cryptocurrency buyers with sellers. These exchanges are among the main venues for purchasing digital assets. When most people refer to cryptocurrency exchanges, they typically mean centralized ones. Cryptocurrency exchanges need to create protections against various risks, yet they serve as a key tool for the liquid use of cryptocurrency assets.
As the popularity of cryptocurrencies has surged in recent years, many centralized exchanges have emerged to meet the demand. These exchanges usually compete with one another based on the number of trading pairs they offer. Trading pairs allow for exchanges at reduced prices or even for free. Decentralized exchanges (DEX) were first created as an alternative to centralized exchanges and have successfully overcome some of their limitations. However, decentralized exchanges also have significant drawbacks:
Low liquidity: The popularity of decentralized exchanges is relatively low, which negatively affects their liquidity. If you need to exchange a large amount, this can pose a serious problem.
Limited variety of assets: Typically, DEXs attract projects that lack the budget to be listed on major centralized exchanges. The variety of coins available for trading on DEXs is often small, and these are usually assets that are not well-known to the public.