Anyone who is looking for a decentralized exchange platform to process any type of transaction has potentially asked themselves this question. Are decentralized exchanges safe? The answer is both yes and no. Here’s an example to try and explain this concept. Are ATMs safe spots for withdrawing money? The simple answer would probably be to say yes. There are certain parts though where ATM’s are bugged, and using them can put your financial data at risk. Along those same lines, an ATM in a sketchy part of town may be safe per se. The dangerous part is having to walk out on the street with cash in hand.
With decentralized exchanges, we tend to see some of these same issues. If you talk to someone who has never had a problem using one of these they’ll probably tell you that they work great. When you come across someone who has fallen victim to some sort of scam they’ll probably tell you that you shouldn’t be going anywhere near these platforms. As they say, beauty is in the eye of the beholder. Are there ways though to make your experience on these platforms safer?
What Makes A Decentralized Exchange Safe?
Most decentralized exchange options out there that are the real deal are going to go out of their way to explain how the entire system works. Naturally, for someone who is well versed in blockchain technology, the decision tends to be a bit easier. You can literally read through what is being presented by the exchange. When you get into some of those technical details scammers tend to fall flat on their face. They either don’t provide enough information about how the platform works. The other thing that tends to happen is that things just don’t add up.
When you’re not as technically well versed in blockchain lingo it may be a better idea to go with the flow. Look for platforms and assets that have for example verified founders and folks who work there. Yes, Bitcoin’s start was dark, to say the least. It works just fine. At this point though, people are showing their faces. It can certainly help new investors feel confident.
Should You Be Looking Into Pegged Assets For Your Transactions?
There are a lot of things to take into account here for sure. It really depends on who you are making the transaction to. Why you are making the transaction can also come into play. If you’re comfortable with the pegged asset exchange you may be naturally prone to accept these deals. There are also days when it may not be as benficial. For example, Gold has been rather volatile lately. Maybe at this time, you’re not on board with making a transaction in a pegged asset that is tied to gold.
What is clear though is that understanding the option is always a good idea. When you know that this option is out there you can evaluate the pros and cons of each operation. The answer to the question that we posted then could vary depending on the moment.