Centralized cryptocurrency exchange platforms are currently more popular and widely used than decentralized exchanges. Some of the biggest crypto exchange services have centralized operations, especially since people seem to be more comfortable using centralized platforms, especially outside of the crypto sector. These centralized exchanges have several advantages over some of their decentralized counterparts, such as volume, high liquidity, and a lower technical barrier to entry.
Centralized exchanges can also offer users features such as insurance, providing an array of tools for investors and speculators to take advantage of. However, several limitations plague centralized options, making them no match for decentralized exchanges (DEXs) like FibSwap.
Autonomy in Crypto
One of the most critical factors that makes crypto attractive is decentralization. In many cases, members of the community use or purchase cryptocurrencies because they believe that central authorities should not directly impede its growth or operations. However, the basic idea of centralization erodes this essential factor.
With centralized exchanges, users do not have direct access to their tokens. No matter if a user is a crypto whale that dominates the market, their power somewhat begins and ends with centralized exchanges. These platforms may restrict access for several reasons, including government interference, KYC requirements, or stricter company regulations.
Through decentralized options, users can enjoy a level of autonomy and personal security that no centralized platform can assure. For example, using FibSwap, users have direct access to their portfolios, with the ability to access and utilize their holdings as they please.
Importance of Direct Access to Crypto Assets
Users who can directly access their crypto wallets do not have to put the security of their funds in the hands of a third party. This is especially important because the most secure centralized platforms can be prone to breaches. According to a Business Insider report, the crypto sector lost nearly $3 billion to frauds and hackers in 32 different incidents as of August 2021. In one incident alone, the Poly Network lost $600 million worth of cryptocurrencies in what is widely considered one of the sector’s largest hacks. According to the same report, the average value of breach and fraud cases is $93.3 million.
Another importance of direct access to crypto assets is fundamental decentralization. All the services provided by DEXs are decentralized, allowing users to take full advantage of the features blockchain technology makes accessible. For instance, DEXs provide a layer to match and route trade orders instead of holding customer funds or other related customer information, leaving custody in the hands of end users.
In addition, the decentralization offered by DEXs provides users with more round-the-clock options. Traders who use centralized exchanges are liable to disrupted access caused by server downtime, with traditional markets, such as the stock market, not even accessible on the weekends. For DEXs, nodes hold the responsibility of maintaining the network, making it more secure and ensuring that users always have access.
FibSwap and FIBO Tokens
As a major DEX, and one of the first to allow users to swap crypto tokens between multiple chains, FibSwap provides various value-adding services that are highly inaccessible from other currently available platforms. Traders can easily take advantage of the different assets available on these chains by completing seamless and instant swap transactions between tokens on Ethereum or the Binance Smart Chain (BSC), or tokens from other chains like fantom, polygon avalanche and many more.
At the heart of the FibSwap system is the $FIBO governance and utility token. On the platform, traders utilize $FIBO tokens to complete swaps between chains. In addition to the flexibility, using $FIBO as a native utility token helps to ensure that the cost of these transactions is low, offering a win-win solution for the entire ecosystem and its growing user base.