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Interest in decentralised virtual currency continues to grow, with investors more bullish than ever on the crypto market. For those who are new to investing, crypto can be intimidating, if not downright frightening.
Today, much like a stock exchange for securities, the majority of crypto buying and selling is done through a crypto exchange due to its convenience and ease. An exchange acts as a middleman between buyers and sellers of crypto, such as Bitcoin (BTC) – the first-ever crypto – and altcoins.
Many crypto exchanges have started creating their own cryptos, such as Crypto.com with CRO, Binance with BNB and newcomer Calyx Network with CLX, which has just gone into presale.
Investors are drawn to exchange platforms’ cryptos because they’re considered more trustworthy than investing in a relatively unknown, new coin. Additionally, investing in exchange platforms’ cryptos is accompanied by rewards and benefits.
In this article, we’ll explore the differences between centralised and decentralised exchanges, so you can make an informed decision as to whether you want to purchase Cronos (CRO), Binance Coin (BNB) or Calyx Network (CLX).
Centralised vs Decentralised Exchanges
The centralised crypto exchange platforms, as the name implies, often operate as a third party in a crypto-related transaction involving a buyer and a seller. Most crypto-related transactions are conducted through centralised exchanges, and many prefer this platform over others since it provides greater reliability. Centralised exchanges such as Crypto.com (CRO) and Binance (BNB) are examples.
Centralised crypto exchanges, on the other hand, come with a set of risks. One of them is the possibility of being hacked, and because centralised exchanges are often managed by a single business, they will be the only ones liable for their customers’ losses and will be held accountable. With that in mind, they are very likely to be hacked or face some other type of cybersecurity threat.
Another drawback to centralised exchanges is transaction fees; these exchanges charge you a high cost for all of the services they offer. Taxation does not apply to all crypto-related transactions on centralised exchanges, unlike equity, and these types of taxes imposed by centralised exchanges entail a significant financial expense. Consider Binance (BNB), which charges a transaction fee that varies between 0.012% and 0.1%.
On the other hand, decentralised exchanges allow users to conduct peer-to-peer (P2P) transactions without the need for a third party to monitor the process; however, they do not allow for the conversion of fiat currencies to digital currencies. The upcoming Calyx Network (CLX) is an example of a decentralised exchange platform.
The ability to be anonymous is one of the most important features of decentralised crypto exchanges for traders and investors. Decentralised exchanges, unlike centralised exchanges that require users to fill out a KYC (Know-Your-Customer) form, provide complete anonymity while maintaining users’ privacy.
Furthermore, because they do not need to transfer their funds to a third-party entity, decentralised exchanges become the ideal alternative for traders and investors who are concerned about hacking. Decentralised exchanges also protect all participants in peer-to-peer (P2P) transactions from market manipulation because they allow users to interact in peer-to-peer transactions.
InvestorsObserver gave Cronos (CRO) a bullish rating on Monday. While the broader crypto market is up 6.54%, CRO is up 8.81% to $0.4991898606 at the time of writing. According to Forbes Advisor, Cronos (CRO) has strong growth potential due to its large marketing campaigns. The future growth of CRO could be maintained if Crypto.com’s brand recognition stays strong.
Cronos (CRO) also has a high APY for staking. The staking APY for CRO is 10% as of February 2022. This is the amount of CRO you get in return for lending your CRO to help run the Crypto.com blockchain.
Crypto.com has lower trading fees as well. You may be eligible for lower trading fees if you have CRO in your Crypto.com account. This is especially beneficial to low-volume traders.
However, bear in mind that CRO suffers from high volatility, so investors should prepare for losses. Also, CRO is vulnerable to the negative publicity surrounding Crypto.com, and can fluctuate drastically as a result. Finally, to qualify for bigger rewards with Crypto.com, your CRO must be staked for at least 6 months, and you only qualify if you stake over $400,000.
Binance Coin (BNB)
As of 2022, BNB is regarded as one of the best utility tokens. While BNB can be used to trade and pay fees on the Binance (BNB) exchange, it can also be used outside of the Binance (BNB) ecosystem. BNB can also be used to pay for a variety of services, such as credit card bills, online purchases, travel, entertainment, and transfers.
Binance (BNB) users receive discounts when paying fees on the exchange, which is one of the major benefits of investing in BNB. This incentive – fee reductions – is a clever way to build a growing community of supporters while also acting as a facilitating force for day-to-day traders.
Moreover, Binance (BNB) has quick transactions and some of the lowest transaction fees in the industry, with all traders paying a fee of 0.1%. In most cases, fees and speed are linked. When a blockchain is overburdened with transactions, transaction fees usually rise as well.
However, BNB is highly centralised due to Binance’s (BNB) massive control over the token. According to data gathered by Etherscan, Binance (BNB) owns up to 80% of BNB tokens across multiple wallets. Likewise, Binance (BNB) is also a popular target for hackers and cyber attacks because of its popularity. Finally, in a DeFi sphere, Binance (BNB) operates a CeFi exchange. Binance’s position is becoming increasingly precarious as decentralised lending and trading protocols gain traction. And, if DeFi takes over, BNB may lose its use.
Calyx Network (CLX)
Information on Calyx Network (CLX) is currently scarce as the newcomer has only just entered its presale stage. Its presale allows investors to get in early on the project, meaning they will experience immense returns following the crypto’s anticipated rise.
There is a buzz surrounding Calyx Network (CLX) in the crypto community due to its state-of-the-art features. According to its website, Calyx (CLX) enables users to trade instantly – tokens will be swapped instantly in a single transaction, allowing users to receive the swapped tokens immediately after completing the exchange request.
In addition, Calyx (CLX) describes itself as “commerce-ready” as it provides a dynamic range of token options for instant trade with low settlement risk, which is a critical component in making the product ready for real-world use.
Furthermore, its dynamic trade routing allows traders to leverage the best rate for any token swap on any supported blockchain network by aggregating liquidity from multiple liquidity sources. Similarly, Calyx (CLX) is utterly permissionless – by donating an equivalent amount of underlying tokens in exchange for LP tokens, anyone can become a Liquidity Provider or start a pool.
Using Calyx (CLX) as an exchange platform comes with exciting benefits such as staking rewards – users who stake CLX will receive a portion of the fees collected by Calyx Network (CLX) – as well as liquidity incentives and token burning, which gradually increases the price of CLX by reducing the supply.
For more information, visit:
ENTER THE PRESALE: https://presale.calyx.network/