Here Are 3 Altcoins That Can Take Off With The Effect Of The Chinese Ban! - News-Credit-Mortgage-Coin

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Tuesday, September 28, 2021

Here Are 3 Altcoins That Can Take Off With The Effect Of The Chinese Ban!

 



China's crypto ban has caused traders to enter decentralized exchanges. We take a look at how these exchanges work and which coins are DEX's big guns.


Altcoin projects listed on DEX

China's crypto ban last week has brought traders flocking to decentralized exchanges. These peer-to-peer platforms allow parties to transact without any middleman, even a clearinghouse. The crypto market rebounded on Monday from the slump caused by China's complete ban on trading and mining late last week. However, it wasn't the major cryptocurrencies that saw much of the move, even some of the altcoins that emerged recently, but rather decentralized exchange (DEX) tokens.

Decentralized exchanges do not rely on any middleman as a standard centralized exchange would. There are no banks or brokers or even clearinghouses, instead they offer a peer-to-peer platform where interested parties use smart contracts to execute their transactions. These contracts are mini-programs running on a Blockchain that will be executed automatically when a set of conditions is met. A number of decentralized exchanges are built on the Ethereum network, the largest such blockchain hosting smart contracts, decentralized finance applications and other protocols.

It is often cheaper to use than centralized exchanges such as Binance or Coinbase and means that users are fully responsible for managing their wallets and private keys that give them access to crypto tokens. The three largest decentralized exchanges by volume are Uniswap, SushiSwap and derivatives exchange DxDy. “Decentralized exchanges Uniswap and Sushiswap have seen a surge in usage as a result of China banning centralized exchanges,” Jonas Luethy, a junior sales trader at cryptocurrency manager Global Block, said in a newsletter. Because DEXs only require a crypto wallet and no KYC [know your customer], they can be and are much easier to use.”


There are basically three different ways a DEX will work.

The first is what is known as the on-chain order book, which lists all buy and sell orders sorted by price. In this case, every part of the transaction is written to the Blockchain. This includes not only purchases and sales, but even solicitations to buy or sell. So all information is securely stored in one place, but this process can be costly and slower. Off-chain order books only record the final agreed transaction on the Blockchain, without storing orders or any other information. It is faster, but slightly less secure.

Finally, there are automated market makers (AMMs) that use what are known as liquidity pools. The pool essentially consists of a sufficiently large token reserve or token pairs. A user will simply pool the tokens they want to sell or buy and complete a smart contract transaction. This method makes it much easier to switch from one cryptocurrency to another compared to an order book, for example.

Here are the top 3 DEX altcoins to watch out for: Uniswap is the largest token with a market cap of over $14 billion. The token rose almost 40% at one point on Monday. It's around $23.40, up about 360% so far this year. Sushi is the second largest token with a market cap of over $1 billion. Rising nearly 270% to $10.70 this year, the token rallied around 30% early Monday. DYDX rose as much as 31% on Monday. According to GlobalBlock, these exchanges have registered a large influx of new users plus higher trading volumes than Coinbase for the first time. The Dydx token was launched about a month ago and has already roughly doubled to $20.00.



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