If you're just starting out with crypto, we recommend opening an account with a centralized exchange as your first step. Later, when you're ready to get started with more advanced portfolio diversification strategies and DeFi, you can move onto using a DEX. The Billion-Dollar DEX
The Uniswap news is significant, in our view, for three reasons: First, it reflects a shift among investors towards more varied portfolio diversification. Second, it implies growing interest in DeFi. Third, it more generally helps to prove the viability of decentralized autonomous organizations (DAOs) as a concept.
As we've discussed in another post,
individual and institutional investors are increasingly investing in alternative cryptocurrencies, or Altcoins. Beyond investing, people have begun to actively use cryptocurrency for its original use-case as a transactional instrument. Indeed, according to CoinMarketCap
, stablecoins dominate digital asset markets in terms of daily trading volume.
Decentralized exchanges are an essential part of the growing DeFi ecosystem, and their growth in popularity and profitability reflects increasing interest in these new financial instruments. Really, this trend is unsurprising given the plethora of passive income generation
opportunities and the possibility of double-digit
In the end, the very fact that so much value is being transferred through DEXs proves that there are people who are ready to trust decentralized organizations with their money. Going into the future, it will be interesting to observe what kinds of exciting innovations will come along to serve this market.