โšก Easily Trade – Apple, Microsoft , Tesla and Google Stocks โ€“ Open a FREE Account Here
5 Best Decentralized Trading Platforms in Kenya

5 Best Decentralized Trading Platforms in Kenya

What are Decentralized Applications in Kenyaย revealed. Weย tested and verifiedย the best guide toย Decentralized Applications for Kenyan Traders.

This is a complete guide toย Decentralized Applications in Kenya.

In this in-depth guide youโ€™ll learn:

  • What is aย Decentralized Application?
  • What are
    decentralizedย web apps?
  • What are dApp wallets?
  • What is aย dApp browser?
  • How can I trade Bitcoin withย $5 (602 NGN)?


And lots moreโ€ฆ

So if youโ€™re ready to go โ€œall inโ€ with the best-tested guide on Decentralized apps in Kenyaโ€ฆ

Letโ€™s dive right inโ€ฆ

Updated : October 7, 2022

5 Best Decentralized Trading Platforms in Kenya (Updated 2022)

  1. DODO
  2. PancakeSwap V2
  3. Uniswap V3
  4. Curve Finance
  5. dYdX

What is a Decentralized Trading Platform?

๐Ÿ‘‰ Decentralized crypto exchanges, often known as DEXs, are applications built on blockchain technology that facilitate the trade of digital assets on a massive scale between several users.

ย 

๐Ÿ‘‰ Instead of using the traditional strategy of serving as a financial mediator between buyers and sellers, they accomplish this goal only via algorithmic processes.

ย 

๐Ÿ‘‰ Examples of smart contracts include the algorithms that DEXs use. They are snippets of code built on top of blockchain networks like Ethereum, and they cause different outputs to be triggered when certain inputs are provided.

ย 

๐Ÿ‘‰ The concept of “disintermediation,” which refers to eliminating intermediaries to facilitate normal people doing commerce directly with one another, is the driving force behind a DEX.

ย 

๐Ÿ‘‰ A DEX does not provide consumers with a custodial service for their cryptocurrency holdings. In its place, users are responsible for directly storing all their assets inside their own wallets.

1. DODO

DODO

Overview

๐Ÿ‘‰ DODO is a DeFi system that uses an initiative-taking market maker (PMM) mechanism to provide consistent on-chain liquidity.

ย 

๐Ÿ‘‰ The PMM algorithm, in comparison to automated market makers, offers a more stable liquidity pool (AMM). A further feature of the PMM pricing mechanism is that it simulates human pricing and operates via oracles, which link real-time data and blockchains.

ย 

๐Ÿ‘‰ The DODO protocol is the solution for companies that supply continuous on-chain liquidity. It uses the Ethereum network to conduct its operations.

ย 

๐Ÿ‘‰ The DEX has contract-filling liquidity comparable to centralized exchanges (CEXs). In addition, the stability of the prices traded on the DEX is associated with the values of real-time asset markets.

ย 

๐Ÿ‘‰ In comparison to the features of AMM, PMM’s DODO exchange offers an improved solution to a few shortcomings. The DEX uses the real prices that are being paid on the market for assets as a leverage point to generate adequate liquidity for the portfolios of liquidity providers.

ย 

๐Ÿ‘‰ In addition, DODO reduces price slippage and eliminates temporary losses via arbitrage trading gains. Beginning in August 2020, DODO will use the price feeds provided by Chainlink’s oracles as part of its partnership with Chainlink.

ย 

๐Ÿ‘‰ Because the market prices are updated in real-time, the algorithm can avoid creating significant price gaps between itself and actual market assets.

ย 

Criteria

Platform CriteriaInformation
๐Ÿ’ป Market Rank#6
โฐ 24-Hour Trading Volume$123,437,787
๐Ÿ“Š Market Share by volume0.0002%
โœ”๏ธ Number of Markets Offered86
๐Ÿ—“ Date LaunchedSeptember 2020
๐Ÿ“ฑ DEX typeSwap
๐Ÿช™ Number of Coins Offered10
๐Ÿ’ป Number of Trading Pairs16
๐Ÿ“‰ Average Site Visits331,054
๐Ÿ“Š Most-Traded PairDAI/USDT
๐Ÿช™ Native TokenDODO
๐Ÿ’ต Maker Fees0.3%
๐Ÿ’ณ Taker Fees0.3%
๐Ÿ“ฑ Security Features
๐Ÿ’ฐ KYC Required?No
๐Ÿ’ธ Deposit/Withdrawal MethodsCrypto
โœ”๏ธ Fiat Currency Supported?No

ย 

Pros and Cons

โœ”๏ธ ProsโŒ Cons
The protocol offers enough liquidity for on-chain transactions like auctions and liquidations, comparable to that of centralized exchangesDODOโ€™s PMM approach has a few limitations that could affect Kenyansโ€™ trading experience overall
The amount of digital assets that participants may add to the liquidity pool is not restricted by DODO
DeFi initiatives may get a free listing via the Initial DODO Offering (IDO)
DODOโ€™s PMM model is extremely versatile
The PMM model used by DODO lowers the entrance barrier for newly created assets
DODO provides a Private Pool for Kenyans

2. PancakeSwap V2

PancakeSwap

Overview

๐Ÿ‘‰ The popular decentralized cryptocurrency exchange PancakeSwap incorporates elements of gaming and various revenue models. In addition, there are various currencies, yield farms, liquidity pools, and lotteries to choose from on the platform.

ย 

๐Ÿ‘‰ In response to Uniswap Exchange’s exorbitant fees and slow performance, the PancakeSwap Exchange debuted on the Binance Smart Chain in September 2020.

ย 

๐Ÿ‘‰ PancakeSwap Exchange has evolved from its humble beginnings as a carbon duplicate of Uniswap on another blockchain to become the more popular of the two.

ย 

๐Ÿ‘‰ Compared to a centralized exchange like Binance or Coinbase, DEXs remove the need for intermediaries by having smart contracts oversee trades instead of companies.

ย 

๐Ÿ‘‰ While BEP-20 tokens from the BSC are the primary tokens utilized by PancakeSwap, additional tokens may be used by “wrapping” them as BEP-20 tokens and then using the Binance Bridge.

ย 

๐Ÿ‘‰ Using automated market-maker (AMM)-operated liquidity pools, PancakeSwap uses smart contracts. Massive pools of money made up of tokens staked by users and governed by algorithms to execute trade orders between users constitute liquidity pools.

ย 

๐Ÿ‘‰ When PancakeSwap has sufficient liquidity, a buyer may transact with a contract stored on a distributed ledger instead of a seller.

ย 

๐Ÿ‘‰ PancakeSwap, the most popular DEX and DeFi software is responsible for the vast majority of the estimated $2.95 billion in assets kept on the BSC network, as reported by TVL.

ย 

๐Ÿ‘‰ Furthermore, PancakeSwap has its own governance token called “CAKE,” which allows holders to vote on proposals. Liquidity providers and speculators also give incentives to CAKE.

ย 

Criteria

Platform CriteriaInformation
๐Ÿ’ป Market Rank#5
โฐ 24-Hour Trading Volume$159,950,156
๐Ÿ“Š Market Share by volume0.0002%
โœ”๏ธ Number of Markets Offered4,872
๐Ÿ—“ Date Launched
๐Ÿ“ฑ DEX typeSwap
๐Ÿช™ Number of Coins Offered3,550
๐Ÿ’ป Number of Trading Pairs4,058
๐Ÿ“‰ Average Site Visits77,467,445
๐Ÿ“Š Most-Traded PairWBNB/USDT
๐Ÿช™ Native TokenCAKE
๐Ÿ’ต Maker Fees0.02%
๐Ÿ’ณ Taker Fees0.07%
๐Ÿ“ฑ Security FeaturesCertiK, Peckshield, and Slowmist do Open-Source Code and Security Audits. Multi-sig is used for contracts
๐Ÿ’ฐ KYC Required?None
๐Ÿ’ธ Deposit/Withdrawal MethodsNon-Custodial for swap, perpetual use smart contracts, and all funds can be withdrawn to the wallet at any given time
โœ”๏ธ Fiat Currency Supported?No

ย 

Pros and Cons

โœ”๏ธ ProsโŒ Cons
Subsequently of being built on BSC, the exchange has lower transaction feesOnly three currency pairings are available for margin trading
There is an established group of developers, a defined plan of action, and a thriving communityJust three items are available for swaps currently
PancakeSwap offers competitive annual percentage rates and annualized percentage yieldsEthereum’s interest rate may go to zero, rendering the currency useless
PancakeSwap provides Kenyan traders with access to a vast selection of goods and services

3. Uniswap V3

Uniswap V3

Overview

๐Ÿ‘‰ Since its debut in 2018, Uniswap has become the most well-known decentralized exchange (DEX), with over $5 billion in smart contracts.

ย 

๐Ÿ‘‰ A significant cryptocurrency asset exchange that uses the Ethereum blockchain is called Uniswap. It proposes a dramatic departure from current exchanges by advocating a completely decentralized, fully disintermediated ecosystem in which no one entity may own, control, or administer its network.

ย 

๐Ÿ‘‰ Uniswap also employs an automated liquidity protocol, a novel trading mechanism that emphasizes decentralization and security while doing away with the need for dependable intermediaries.

ย 

๐Ÿ‘‰ You can only trade ERC20 tokens, any digital assets based on Ethereum, on Uniswap.

ย 

๐Ÿ‘‰ Since Ethereum is a commonly utilized blockchain for producing crypto tokens, there is an enormous range of digital assets accessible for trading on this platform. Uniswap was among the first widely used decentralized exchanges due to its innovative design.

ย 

๐Ÿ‘‰ It does not take long to comprehend how the Uniswap software works because it is simple. For example, connecting a bitcoin wallet, exchanging one digital asset for another, or adding coins to a liquidity pool are all straightforward processes.

ย 

๐Ÿ‘‰ Bypassing the inherent inadequacies of centralized exchanges, Uniswap is a platform that allows users to trade various ERC-20 tokens using a single, simplified web interface.

ย 

๐Ÿ‘‰ Instead of relying on traditional order books, Uniswap employs the architecture of an Automated Market Maker (AMM) to determine asset values, perform transactions, and execute trades.

ย 

๐Ÿ‘‰ One of the most amazing innovations to come out of the DeFi ecosystem is AMM infrastructures. AMM provides users with features like the ability to trade ERC-20 tokens without finding a buyer or seller on the opposite side of the transaction.

ย 

๐Ÿ‘‰ Instead of employing an order book, Uniswap uses a set of formulas based on token ratios in its many liquidity pools to calculate token prices. This strategy offers more accurate pricing and prevents price manipulation by creating a balanced on-chain economy.

ย 

Criteria

Platform CriteriaInformation
๐Ÿ’ป Market Rank#2
โฐ 24-Hour Trading Volume$1,088,874,112
๐Ÿ“Š Market Share by volume0.0015%
โœ”๏ธ Number of Markets Offered586
๐Ÿ—“ Date LaunchedMay 2021
๐Ÿ“ฑ DEX typeSwap
๐Ÿช™ Number of Coins Offered440
๐Ÿ’ป Number of Trading Pairs792
๐Ÿ“‰ Average Site Visits2,810,234.0
๐Ÿ“Š Most-Traded PairUSDC/0XC02
๐Ÿช™ Native TokenUNI
๐Ÿ’ต Maker Fees0.3%
๐Ÿ’ณ Taker Fees0.0% – 0.2%
๐Ÿ“ฑ Security FeaturesEthereum protocol, bug bounty,
๐Ÿ’ฐ KYC Required?None
๐Ÿ’ธ Deposit/Withdrawal MethodsCrypto
โœ”๏ธ Fiat Currency Supported?No

ย 

Pros and Cons

โœ”๏ธ ProsโŒ Cons
Kenyans have unrestricted access to several ERC-20 tokensThe DEX does not take fiat currency, and there are gas expenses
The platform is simple to use and has a user-friendly designThere is a security problem since KYC is not needed
Kenyans who engage in liquidity mining may make money using cryptocurrenciesKenyans could face impermanent loss
There is no formal registration or KYC process to finish
Uniswap provides support for crypto wallets

4. Curve Finance

Curve Finance

Overview

๐Ÿ‘‰ Curve Finance’s founder, Michael Egorov, experimented with Bitcoin in 2013. Through MakerDAO, he joined DeFi in 2018. The next year, he researched Uniswap but found much more room for growth.

ย 

๐Ÿ‘‰ Subsequently, in November 2019, he published a whitepaper on StableSwap, his own DEX. In 2020, he changed the organization’s name to Curve Finance. As the “backbone of DeFi,” Curve Finance is a decentralized trading exchange focusing on liquidity pools for trading assets with comparable values.

ย 

๐Ÿ‘‰ This includes the majority of stablecoin pairings and staking-enabled cryptocurrencies like ETH and stETH. Any user may launch a market on Curve and profit on token exchange fees.

ย 

๐Ÿ‘‰ The first decentralized exchange (DEX) to choose to focus on stablecoin assets was Curve Finance. Since stablecoin assets are less volatile than cryptocurrency assets, this reduces the risk of temporary loss.

ย 

๐Ÿ‘‰ Stablecoins and how they operate inside the Curve protocol are crucial to the overall architecture of the protocol. Other features include the Curve DAO and its support for 10 networks, the Factory for building pools, and motivating users to provide liquidity to the pool.

ย 

๐Ÿ‘‰ Liquidity pools in CRV may be constructed in The Factory. Therefore, even though the user interface, or fill-in-the-blanks style, is straightforward, you still need to have some knowledge of what you are doing before completing the form.

ย 

๐Ÿ‘‰ Pool managers may lure customers with the help of Curve’s gauge weight system. For instance, using this metric, CRV token holders might decide which pools should get more rewards in CRV and what quantities.

ย 

๐Ÿ‘‰ All token owners with a locked CRV have access to the biweekly vote. Therefore, the gauge’s installation requires at least 2500 veCRV tokens.

ย 

Criteria

Platform CriteriaInformation
๐Ÿ’ป Market Rank#7
โฐ 24-Hour Trading Volume$116,891,184
๐Ÿ“Š Market Share by volume0.0002%
โœ”๏ธ Number of Markets Offered49
๐Ÿ—“ Date LaunchedJanuary 2020
๐Ÿ“ฑ DEX typeSwap
๐Ÿช™ Number of Coins Offered40
๐Ÿ’ป Number of Trading Pairs115
๐Ÿ“‰ Average Site Visits750,271
๐Ÿ“Š Most-Traded PairUSDC/0XDAC
๐Ÿช™ Native TokenCRV, veCRV
๐Ÿ’ต Maker FeesNone
๐Ÿ’ณ Taker FeesNone
๐Ÿ“ฑ Security FeaturesSmart contracts are audited by Trail of Bits
๐Ÿ’ฐ KYC Required?None
๐Ÿ’ธ Deposit/Withdrawal MethodsNon-custodial
โœ”๏ธ Fiat Currency Supported?No

ย 

Pros and Cons

โœ”๏ธ ProsโŒ Cons
Curve Finance plans to accomplish this by using a non-custodial platformDeFi is still heavily reliant on the Ethereum blockchain
Curve Finance uses liquidity pools to make it possible for clients to buy tokensKenyans might be intimidated by the complexity of the platform
In addition to being well-established in the DeFi sector, Curve also has a decentralized managementCurve does not yet have a mobile application
On average, Curve’s fees and pool requirements are less expensive than those of many similar platforms

5. dYdX

dYdX

Overview

๐Ÿ‘‰ dYdX Trading Inc. is a significant decentralized exchange established in 2017 by Californian entrepreneur and former Coinbase engineer Antoni Juliano. Leverage up to 25x is available for perpetual trading on the DEX, along with lending and borrowing.

ย 

๐Ÿ‘‰ Ethereum smart contracts power the network. A layer 2 solution ensures that customers only pay a tiny fraction of a cent in gas expenses for each transaction. So, there is good reason to believe dYdX when they say they are developing the next generation of DeFi exchanges.

ย 

๐Ÿ‘‰ The platform uses StarkWare, one of the most advanced and potent Ethereum Layer 2 solutions, to provide traders with a lightning-fast and frictionless trading experience.

ย 

๐Ÿ‘‰ It is crucial to remember that the dYdX platform and protocol solutions are undergoing major modifications and evolutions.

ย 

๐Ÿ‘‰ The platform stopped offering spot trading and shifted its focus to perpetual trading. Subsequently, the StarkWare layer 2 internal protocol update’s first tradeable instrument was this feature.

ย 

๐Ÿ‘‰ According to the dYdX team, more trading options will be available once the platform launches the V4 version, which is anticipated to be finished by the end of 2022.

ย 

๐Ÿ‘‰ Additionally, dYdX plans to abandon Ethereum and build its blockchain on the Cosmos SDK network, subsequently powering its native blockchain.

ย 

๐Ÿ‘‰ With backing from some of the best players in the market, such as Andreessen Horowitz, a16z, and Brian Armstrong of Coinbase, this overly ambitious platform is a genuine force in the DeFi industry.

ย 

๐Ÿ‘‰ The platform is one of the top 20 DeFi projects where TVL is concerned, with a healthy 24hr trading volume of over 1.2 million and a TVL just shy of $500m.

ย 

Criteria

Platform CriteriaInformation
๐Ÿ’ป Market Rank#1
โฐ 24-Hour Trading Volume$1,283,035,834
๐Ÿ“Š Market Share by volume0.00017%
โœ”๏ธ Number of Markets Offered10
๐Ÿ—“ Date LaunchedApril 2019
๐Ÿ“ฑ DEX typeOrderbook
๐Ÿช™ Number of Coins Offered36+
๐Ÿ’ป Number of Trading Pairs
๐Ÿ“‰ Average Site Visits
๐Ÿ“Š Most-Traded Pair
๐Ÿช™ Native TokenDYDX
๐Ÿ’ต Maker Fees0% – 0.020%
๐Ÿ’ณ Taker Fees0% – 0.050%
๐Ÿ“ฑ Security FeaturesSecured by the Ethereum protocol, audited by third parties, time-locked admin accounts, self-custodial security measures required
๐Ÿ’ฐ KYC Required?No
๐Ÿ’ธ Deposit/Withdrawal MethodsCrypto Only
โœ”๏ธ Fiat Currency Supported?No

ย 

Pros and Cons

โœ”๏ธ ProsโŒ Cons
The exchange has its own token, DYDXThere are only three margin trading pairs offered
Kenyans may use leverage to initiate long and short tradesThere are only three assets offered for swaps
Kenyans could earn interest on their coinageThe interest rate on Ethereum can drop to 0%, which makes it worthless
Borrowing rates are competitive
Kenyans need not worry about fees when they trade perpetual or when they swap coins supported by the platform

How to choose the Right Decentralized Trading Platform in Kenya

๐Ÿ‘‰ Kenyan traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.

ย 

Regulations and Licenses

๐Ÿ‘‰ This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Kenyans must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.

ย 

Account Features

๐Ÿ‘‰ Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.

ย 

Deposits and Withdrawals

๐Ÿ‘‰ Kenyans must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.

ย 

Range of Markets

๐Ÿ‘‰ The range of markets offered refers to the number and range of tradable instruments that the broker offers. Kenyans must consider what they wish to trade and what is available.

ย 

Customer Support

๐Ÿ‘‰ Customer Support is another crucial factor and Kenyans must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.

ย 

Trading Platform

๐Ÿ‘‰ A trading platform is the Kenyan traderโ€™s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.

ย 

Education and Research

๐Ÿ‘‰ Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:

โžก๏ธ eBooks

โžก๏ธ Trading guides

โžก๏ธ Trading knowledge on leveraged products

โžก๏ธ A risk warning on complex instruments

โžก๏ธ Educational videos

ย 

๐Ÿ‘‰ Research can include some of the following:

โžก๏ธ Trading tools

โžก๏ธ Commentary

โžก๏ธ Status of International Markets

โžก๏ธ Price movements

โžก๏ธ Market sentiments

โžก๏ธ Whether there is a volatile market

โžก๏ธ Exchange Rates

โžก๏ธ Expert opinions and several other resources can help experienced traders make informed trading decisions.

The Best Crypto Brokers in Kenya

๐Ÿ‘‰ In this article we have listed the best Forex Platforms in Kenya that offer trading platforms in Kenya. We have further identified some forex brokers that offer additional services and solutions to Kenyan traders.

ย 

Best MetaTrader 4 / MT4 trading platform broker in Kenya

Best MetaTrader 4 / MT4 trading platform

๐Ÿ‘‰ Overall, Exness is the best MetaTrader 4 / MT4 trading platform in Kenya. Exness has offices in Cyprus, the United Kingdom, Seychelles, South Africa, the British Virgin Islands, and Curaรงao.

ย 

๐Ÿ‘‰ Exness provides a number of benefits such as low commissions, instantaneous order execution, and the opportunity to withdraw money immediately via various instant withdrawal alternatives.

ย 

Best MetaTrader 5 / MT5 Forex Platform broker in Kenya

Best MetaTrader 5 / MT5 Forex Platform

๐Ÿ‘‰ Overall, HF Markets is the best MetaTrader 5 / MT5 trading platform in Kenya. HF Markets was previously known as HotForex. It offers a variety of pricing alternatives and account types. HF Markets has competitive fees and spreads that average 0.1 for the EUR/USD currency pair.

ย 

Best Forex platform for beginners in Kenya

Best Forex platform for beginners

๐Ÿ‘‰ Overall, Tickmill is the best trading platform for beginners in Kenya. Tickmill is reputable and trustworthy forex and CFD broker. Tickmill is regulated by top-tier regulators like FSCA (South Africa), FCA (UK), and CySEC.

ย 

๐Ÿ‘‰ Tickmill offers instant internet banking deposit methods and quick bank transfer withdrawals.

ย 

Best Minimum Deposit Forex platform in Kenya

5 Best Decentralized Trading Platforms in Kenya

๐Ÿ‘‰ Overall, FBS is the best trading platform for the lowest minimum deposit in Kenya. FBS is in operation since 2009 and has evolved to become a large, reputable international forex and CFD broker. FBS offers competitive trading conditions, a range of accounts, advanced trading tools, and several other advantages to Kenyan traders.

ย 

Best ECN Forex platform in Kenya

Best ECN Forex platform

๐Ÿ‘‰ Overall, Oanda is the best ECN platform in Kenya. Oanda gives customers access to a variety of financial products for seasoned investors.

ย 

๐Ÿ‘‰ Oanda offers quick and reliable transaction execution. Oandaโ€™s research resources are superior to industry standards. Its user interfaces are easy to understand and it has a good track record of regulatory oversight.

ย 

Best Islamic / Swap-Free Forex platform in Kenya

Best Islamic / Swap-Free Forex platform

๐Ÿ‘‰ Overall, BD Swiss is the best Islamic Forex Broker in Kenya. BD Swiss is a well-regulated and reputable broker with a large international clientele. BD Swiss offers a wide range of products for trading. BD Swiss also offers trading in many cryptocurrencies.

ย 

Best trading platform Forex Trading App in Kenya

Best trading platform Forex Trading App

๐Ÿ‘‰ Overall, OctaFX has the best forex trading app for traders in Kenya. OctaFX operates from Saint Vincent and the Grenadines. OctaFX serves traders from all over the world, including those in African countries like Kenya.

ย 

๐Ÿ‘‰ Kenyan traders can trade forex currency pairs, Index CFDs, commodities, and cryptocurrencies with OctaFX’s award-winning services from investors around the world.

ย 

Best Lowest Spread Forex platform in Kenya

Best Lowest Spread Forex platform

๐Ÿ‘‰ Overall, Alpari is the best Low spread Forex platform in Kenya. Alpari is trustworthy and reliable as a market maker broker. Alpari is regarded as a broker with a low level of risk. Trading speeds are guaranteed to be swift. More than 2 million customers are enrolled with Alpari.

ย 

Best Nasdaq 100 Forex platform in Kenya

Best Nasdaq 100 Forex platform

๐Ÿ‘‰ Overall, FXTM is the best Nasdaq 100 forex platform in Kenya. FXTM aims to provide the best trading conditions for traders of all levels. For the safety and security of their clients’ cash, they keep such funds in segregated accounts.

ย 

๐Ÿ‘‰ The broker is ideal for active trading and investment opportunities for traders of all skill levels.

ย 

Best Volatility 75 / VIX 75 Forex platform in Kenya

Best Volatility 75 / VIX 75 Forex platform

๐Ÿ‘‰ Overall, AvaTrade is the best Volatility 75 / VIX 75 Forex Platform in Kenya. AvaTrade is trustworthy and well regulated. AvaTrade offers a single live trading account but traders have the choice to trade with either a Retail trading account or a Professional trading account.

ย 

Best NDD Forex platform in Kenya

Best NDD Forex platform

๐Ÿ‘‰ Overall, XM is the best NDD forex platform in Kenya. XM is regulated by strict financial regulators in all relevant jurisdictions. XM offers a balanced mix of all the features that users value: security, support, ease of account funding, and withdrawal. XM charges low fees.

ย 

Best STP Forex platform in Kenya

Best STP Forex platform

๐Ÿ‘‰ Overall, Pepperstone is the best STP Forex platform in Kenya. Pepperstone gives traders across the world access to all markets backed up by very good customer care. Pepperstone also offers modern technology, low spreads, and high-speed execution.

ย 

Best sign up bonus trading platform in Kenya

Best sign up bonus trading platform

๐Ÿ‘‰ Overall, FP Markets is the best Sign Up bonus trading platform in Kenya. FP Markets offers stocks, indices, foreign exchange (forex), commodities, and cryptocurrencies to trade. FP Markets has a user-friendly mobile app and a variety of account types to choose from.

Advantages and Disadvantages of DEX Platforms

DEX Platforms

Advantages

Custody

๐Ÿ‘‰ DEXs are non-custodial; therefore, traders do not need to surrender custody of private keys to transact. Rather, externally owned wallets interface with DEXs, and smart contracts automatically execute transactions.

ย 

๐Ÿ‘‰ In contrast, centralized exchanges serve as custodians for your cash by controlling your private keys. Of course, this necessitates giving up control of your private keys, but centralized exchanges provide security and confidence.

ย 

Diversity

๐Ÿ‘‰ In October 2020, there were approximately 7,400 cryptocurrencies available for purchase, and in 2022, we reached over 20,000.

ย 

๐Ÿ‘‰ CEXs exert control over the cryptocurrencies they list and typically only list those with sufficient trading activity, prevalence, and robust security measures to assure profitability and legal compliance.

ย 

๐Ÿ‘‰ Numerous cryptocurrencies are exclusively available through DEXs, where P2P transactions may occur without huge trade volumes. This expands opportunities for participation in digital assets and improves financial inclusion.

ย 

Trustless Transactions

๐Ÿ‘‰ Every transaction on a CEX is supervised and recorded by this type of exchange, representing a central authority.

ย 

๐Ÿ‘‰ DEXs perform trades and record them on the blockchain using smart contracts, allowing trustless transactions. And since DEXs do not store your cash, hackers are less likely to attack them.

ย 

The Fees are Lower on DEXs

๐Ÿ‘‰ Decentralized exchanges work via the use of smart contracts that automatically execute. In the lack of an agent, DEXs use the same “gas” charge structure as the Ethereum blockchain on which they are based.

ย 

๐Ÿ‘‰ DEXs impose a nominal fee, about 0.3%, for exchanges such as Uniswap. Even though these prices vary based on network use, they are far less than the expenses associated with centralized alternatives.

ย 

There is increased Privacy

๐Ÿ‘‰ Because wallets are maintained outside, and the DEX is not accountable for the money, traders utilizing decentralized exchanges do not need to share their private keys.

ย 

๐Ÿ‘‰ Users of DEXs are not normally required to undergo KYC and AML processes for the same reason. This may be useful in terms of convenience, but it might be troublesome from a legal one.

ย 

Disadvantages

Scalability Issues

๐Ÿ‘‰ The number of transactions a network can execute before hitting capacity determines the scalability of a blockchain. The Bitcoin network, for example, processes 4.6 transactions per second (TPS), whereas Ethereum processes 15 TPS.

ย 

๐Ÿ‘‰ Decentralized exchanges are supported by smart contracts residing on blockchain networks. Therefore, DEXs are constrained by their underlying network architecture.

ย 

Overall User Experience

๐Ÿ‘‰ DEXs are in their nascent phases of development, making them difficult to utilize for individuals unfamiliar with decentralized blockchain technology. To engage with a DEX, users must first acquaint themselves with external wallet systems.

ย 

๐Ÿ‘‰ The user must then fund their wallet with fiat cash or cryptocurrency. Finally, users must connect their wallet to the DEX interface to conduct a trade. On a CEX, the procedure of depositing money for trading is simpler.

ย 

Liquidity Issues

๐Ÿ‘‰ Since DEXs are still relatively young and allow several trading pairs, market segregation negatively affects market liquidity. Despite this, asset liquidity has increased significantly with the expansion of DeFi.

ย 

On and Off-Ramp Issues

๐Ÿ‘‰ DEX technology does not provide digital asset purchases using fiat currencies like USD, nor does it permit the trading of fiat or withdrawals to a bank account.

ย 

๐Ÿ‘‰ While stablecoin technology is evolving to replace cash in the DeFi ecosystem, the absence of fiat on- and off-ramps is a barrier to access for inexperienced users.

Conclusion

๐Ÿ‘‰ However, decentralized alternatives provide an intriguing alternative to the centralized exchanges that continue to dominate the crypto markets and fulfil the demands of common crypto traders and investors.

ย 

๐Ÿ‘‰ DEXs enable new forms of equitable participation and governance for stakeholders by linking buyers and sellers in a trustless manner through on-chain smart contracts.

ย 

๐Ÿ‘‰ The user experience, infrastructure, scalability methods, and linkages to centralized crypto and conventional financial institutions need improvement. However, these platforms are still in their infancy.

FAQ

Is it illegal to use Decentralized Exchanges in Kenya?

No, it is not illegal for Kenyans to use the services of a DEX. However, cryptocurrency is not legal tender in Kenya. Therefore, Kenyan traders are not protected if they lose funds because of hacks, theft, or any fraudulent behaviour from the exchange.

ย 

What is the biggest Decentralized Exchange?

As of May 2022, Uniswap is the largest decentralized exchange, with a 43 percent market share. The Uniswap DEX is an automated market maker (AMM) which employs decentralized liquidity pools driven by smart contracts.

ย 

Is PancakeSwap a Decentralized Exchange?

PancakeSwap is a decentralized exchange based on the Binance Smart Chain, a fast and affordable alternative to Ethereum.

ย 

Who runs PancakeSwap?

The Binance Smart Change is operated by Binance, the biggest cryptocurrency exchange in the world. Binance, which maintains its own DEX, does not own, or manage PancakeSwap, which unidentified developers developed.

ย 

Who owns Uniswap?

Hayden Adams is the creator of Uniswap, one of the most popular Ethereum-based decentralized apps. Before joining Uniswap, Hayden worked at Siemens as an engineer. 2016 saw his graduation from Stony Brook University with a bachelor’s degree in engineering.

10/10 - (1 vote)

Table of Contents