CloakCoin recently got listed on a Decentralized Exchange (DEX) named OpenLedger. What does this mean for trader or others who want to purchase CloakCoin? And what are the benefits of anonymous cryptocurrencies as CloakCoin on a DEX such as OpenLedger?
Let’s take a closer look on OpenLedger, DEX and the general advantages first:
OpenLedger:
OpenLedger is a cryptocurrency trading platform and trading tool that offers a number of other blockchain-based services. The ecosystem is based on the BitShares platform. It possible to trade a various number of different cryptocurrencies. See the current daily volume here.
Concept of Decentralized Exchanges (DEX):
A decentralized exchange (DEX) is a marketplace for cryptocurrencies, that is totally open sourced. Nobody is in control of a DEX, it is as a “do-it-yourself trading solution”. The trades are made by the user itself, they also hold the funds or instruments in their own account. The biggest advantage to this system is that funds are not entrusted to a trading company or other third parties.
On the contrary there is the concept of a centralized exchange:
A centralized exchange is owned by a company, the funds are deposit in an account and the exchange makes the trades for the user. The exchanges do most of the work, and it is often insured and regulated by authorities.
Advantages of a DEX
- Account information are not shared with the exchange operator. Instead, funds are kept in the users account, there the user is the only person with access. That makes a DEX more resistant to hacking than a centralized exchange.
- Governments or regulators cannot shut down a DEX, because it is decentralized operating through a wide variety of nodes.
- A DEX operates through a variety of nodes, so there is no server which can go down or get hacked.
- A DEX provides a higher degree of privacy, because there is no data shared with the exchange operator.
- The users keep control of their funds in their own account.
- A DEX can be faster, because the deals are made by the users itself.
Wherever you have advantages, there are also disadvantages, such as:
- Complex to use
- Advanced trading options and margin lending are missing (on most, you can only buy and sell)
- Relatively low liquidity (this will change with more and more usage)
Benefits for a DEX to have CloakCoin
That leads us to the point of the benefits for a DEX to have CloakCoin as a trading pair:
- Wider possibilities for its user to own a privacy coin and therefore be even more anonymous
- Totall anonymity and therefore no chance for any party to know the identity of the owner
- CloakCoin’s ENIGMA-Transactions are untraceable and therefore DEX-User can now send Coins anonymous.
- Higher security of the funds by attacks from third parties thanks to decentralized network.
Disclosure
CloakCoin as a new trading option on OpenLedger.io is indeed an added value for the CryptoWorld. With more time to come, there will be more trading volume on the DEX and therefore more trading volume for CloakCoin. The higher degree of privacy, the resistance to hacking and the elimination of the possibility to be shutdown by government makes the combination CloakCoin and OpenLegder not just necessary, but also a step to a certain and bright future. Be your own bank.
If this article was useful to you, don’t forget to send some Peace & Love to my Cloak-Address: C3vGyjauAJAAyBGnhdD8jKDCZEuy8L88J1
Coins mentioned in post:
I'm a big fan of Cloak, and decentralized exchanges. Cloak has been the only privacy staking coin that I have found to earn staking rewards. I have had NAV and PIV in wallet just as long as my Cloak, and have yet to receive a staking reward from either of them.
Just hang in there my friend the reward will come. See my Twitter-Post about that :-)
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