What is Binance DEX? How to Use It?
If we look at the past decade, the value of digital assets within the decentralized finance space (DeFi) space has grown from a few million to tens of billions of dollars. Furthermore, the number of user wallets grew from a few thousand to a little over a million and the number of DeFi applications went up from a few to a few hundred. This data shows us that DeFi is certainly the future of the finance space.
Binance DEX is certainly a contributing factor to this decentralized future. Launched in 2019, the Binance DEX is making significant progress in building a fast and secure decentralized digital asset exchange. But, what is Binance DEX in its entirety? How to use Binance DEX? Let’s find out.
What is Binance DEX?
Binance DEX is a decentralized crypto exchange created atop Binance’s blockchain, the Binance chain. It’s primary objective is to create a secure and reliable decentralized trading platform.
With more than 100 active coins listed on the exchange and available for trading, Binance DEX cuts out the middlemen and allows users to trade directly with each other.
Connecting your Binance Chain Address to ZenLedger For Your Crypto Tax Forms
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the "Exchanges" tab of the "Imports" page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
Now that we’ve briefly touched upon what is Binance DEX, let’s take a look at how you can use this exchange.
How to Use Binance DEX?
In this guide, we will explore how to use the exchange for trading, how to create a Binance DEX wallet, Binance DEX fees, and more.
While trading on the Binance DEX, you can choose from various cryptocurrency wallets, but it is highly recommended that you use a hardware wallet. It is a secure physical device that stores the cryptocurrency tokens and the user’s private keys which never leaves the device, hence making it the safest option.
In case you don’t have access to a hardware wallet, you can go to the exchange and create a Binance Chain wallet.
Creating a Binance Chain Address on the Exchange
To be able to commence trading on the Binance DEX, first, create a Binance Chain address or a wallet. Do this to create your wallet:
- Head on to Binance DEX and hit the “Create Wallet” button
- Go through the tutorial for creating the Binance DEX wallet and hit the next button to complete the tutorial
- Create a password with a minimum requirement of 8 characters including a number, an uppercase letter, and a symbol. Next, hit the download keystone file button.
- Take a look at your private mnemonic phrase
- Back your private mnemonic phrase up by noting it down on a piece of paper and storing it in a safe and secure place. Also, you can create its copy by clicking on the button above “continue.”
- The wallet will then ask you to arrange the phrase in the right order and after doing so you can move on to the following step.
- After arranging the phrase correctly, your wallet will be created allowing you to trade on Binance DEX.
How to Use Binance DEX for Trading?
Once your Binance Chain wallet has been created and unlocked, you’ll be taken to the exchange page where order books, trading pairs, and more are visible.
To begin trading on the exchange, it is essential to send BNB, Binance’s native coin, or other traded coins to your Binance wallet address.
Is Binance DEX Safe?
Binance DEX is one of the safest exchanges available for two main reasons. Firstly, Binance’s servers are spread across the globe rather than being concentrated in one single location. This means that the exchange is virtually untouchable by hackers. If one server fails, the exchange can rely on others and the overall network has far less impact.
The second reason that makes Binance DEX secure is its truly decentralized nature. When you trade on the exchange, the exchange doesn’t get involved in the transaction as users trade directly with each other. The same goes for the hacker as they cannot get access to your assets because they are stored in a hardware wallet which is nearly impossible for a hacker to access. It is completely the opposite for centralized exchanges where the funds are left on the exchange and in an event of a hack or a shutdown, your assets are lost forever.
Binance DEX is a well-designed and easy-to-use exchange with maximum safety. The exchange allows traders to trade directly with each other and this is very appealing to crypto enthusiasts as the key components of exchange should be privacy and decentralization.