Prominent central Italian exchange called The Rock Trading. It was renowned for having minimal trading costs and a large variety of digital assets.
News of an Italian cryptocurrency exchange failing The topic of conversation is The Rock Trade. The centralised exchange has failed after ten years of operation, and many customers are turning to decentralised exchanges for safety.
In the paper, we will thoroughly examine its failure and provide workable substitutes.
Users will go to decentralised exchanges as a result of The Rock Trading’s collapse.
A well-known centralised Italian exchange was The Rock Trading. It was renowned for offering a large variety of digital assets and inexpensive trading fees. Nevertheless, the exchange recently had a catastrophic breakdown that caused its consumers to incur huge losses.
The failure, according to accounts, was brought on by a hot wallet issue with the exchange. The portion of the infrastructure used to keep funds that are immediately ready for trade is known as the hot wallet.
Several customers were unable to access their money as a result of the error, and some even claimed that their balances had been totally wiped away.
At first, The Rock Trading said that everything was OK and that no issues existed.
But, when more and more people reported issues, the business was compelled to admit the error. The exchange acknowledged a significant issue in a statement and pledged to compensate impacted clients.
The circumstance has caused significant uncertainty over the trustworthiness and security of bitcoin exchanges. Although though holding digital assets on centralised systems has inherent hazards, they can also have numerous advantages.
The loss of The Rock Trading brought to light the necessity of effective risk management procedures and strong security mechanisms in the sector.
The event also acted as a warning to users about the need of utilising bitcoin exchanges with care and prudence.
Users must thoroughly investigate each exchange to be sure they are utilising a trustworthy and trusted service, even if many platforms offer appealing features and reasonable costs.
The Rock Trading’s failure served as a wake-up call for the bitcoin sector. It emphasised the requirement for more accountability and transparency as well as the significance of creating more robust and secure mechanisms to safeguard user monies.
The top decentralised exchanges to rely on following The Rock Trading’s demise
More traders are using decentralised exchanges to purchase and sell digital assets as the bitcoin industry expands and develops.
Decentralized exchanges are founded on blockchain technology, making them open source, transparent, and based on a trustless system, in contrast to centralised exchanges, which are managed by a single company.
This lowers the danger of fraud or theft by enabling users to swap bitcoins without the need for a middleman. Yet it might be challenging to decide which decentralised exchange to use with so many now available.
We will discuss the top decentralised exchanges, highlighting their key benefits and features, so you may choose the one that is perfect for you.
dYdX
The founder of the most well-known decentralised exchange (DEX), dYdX, was a former Uber and Coinbase developer named Antonio Juliano. In addition to the integration of spot trading and margin trading over time, the DEX platform was introduced in 2017.
Nevertheless, dYdX’s primary purpose is to provide permanent trading services, which are primarily provided by centralised exchange (CEX) platforms.
Users of dYdX are able to trade peer-to-peer perpetual contracts and retain positions till they are satisfied.
While trading on layer 2, there are no deposit or withdrawal fees from dYdX, nor are there any gas costs.
The maker-taker commission structure used by the protocol, however, bases trading fees on volume.
StarkNet, a layer-2 for Ethereum that makes use of ZK-Rollups technology, powers the dYdX platform. By maintaining compatibility with Ethereum and its full ecosystem, StarkNet allows dYdX’s users to conduct trades on the platform quickly, efficiently, and almost instantly.
Also, you may access the StarkEx trading engine through StarkNet, which enables dYdX to function on a mixed system.
The fact that dYdX is placed first on CoinMarketCap’s DEX rankings indicates that it is unquestionably among the best decentralised exchanges to utilise.
UniSwap V3
Another major decentralised exchange (DEX) in the sector is this one. a venture made up of a collection of smart contracts that function on the Ethereum blockchain.
To encourage customers to retain their liquidity, UniSwap focuses on offering a part of transaction fees and UNI tokens.
The developers of UniSwap v3 want to build an exchange that, in practise, is similar to a conventional exchange (CEX), but with the benefits of decentralisation.
Uniswap achieves a high level of both decentralisation and censorship resistance by allowing users to trade without the use of middlemen thanks to contracts incorporated into its protocol.
The order book is no longer used by Uniswap, which abandons the conventional design of centralised, computerised exchanges.
The fact that Uniswap generates no income for itself is one of its most distinctive features.
The fees for using Uniswap go straight to the liquidity providers because it is a decentralised protocol and its users supply all of the platform’s liquidity.
One of the most significant exchange revolutions is UniSwap v3, whose design rejects the notion of centralization while retaining the familiarity of a traditional exchange.
Protocol Kine
A decentralised exchange called Kine Protocol was introduced in March 2021. Lei Wang, a former investment banker and the head of Huobi’s institutional business division, founded the company.
The decentralised exchange for the Kine Protocol offers a peer-to-pool derivative market where a liquidity pool serves as a passive counterparty for traders of perpetual contracts.
Unquestionably, the leverage of up to 100x with cross margin, assured liquidity, and the ability to use Ethereum, BNB Chain, Polygon, and Avalanche as collateral are some of the most crucial features of the Kine Protocol.
From this, it follows that Kine Protocol users have the choice of taking part in the ecosystem as stakers, merchants, or liquidators.
With the exception of HT, OKB, and WOO (which are paid at 0.8%), Kine charges no gas expenses and a flat trading commission of 0.1% each executed transaction.
Even if the comparison with dYdX and Uniswap V3 is not yet totally equal, Kine Protocol ranks third in terms of relevance and volume in the CoinMarketCap rankings.
Platform Kine Protocol was created after the two others but quickly rose to prominence, ranking among the top three decentralised exchange platforms.
A decentralised exchange (DEX) differs from a centralised exchange in certain ways (CEX)
A centralised exchange (CEX) provides registered users with bitcoin trading services. Using an order book, it normally matches buyers and sellers as its primary function. A CEX could provide a range of crypto items to its authenticated consumers.
A CEX is the simplest method for newcomers to get started without needing a deep understanding of blockchain architecture and technologies.
On-chain smart contracts are used by a decentralised exchange (DEX) to operate its services. Because other users have given liquidity in exchange for exchange fees, it often trades tokens from liquidity pools.
A DEX is accessible to everyone with a wallet and some bitcoin because no registration is required. DEXs provide consumers a great deal of independence and are the entry point into the realm of decentralised finance (DeFi).
Nevertheless, they don’t have the same level of support that a CEX has, and employing them can make it simple to make mistakes that cannot be undone.
As a result, we may conclude that the major distinction between CEXs and DEXs is the custody of the money: in a CEX, the exchange holds the assets, but in a DEX, the monies are kept in a wallet that the wallet owner controls the private keys to.
Several centralised exchanges, like The Rock Trading, have collapsed as a result of this discrepancy.
Even after The Rock Trading’s bankruptcy, centralised exchanges still outnumber decentralised ones.
Centralized exchanges still rule the crypto industry despite The Rock Trading’s bankruptcy and the subsequent collapse of FTX. The finest are listed here.
Bitget
For traders looking for a safe and user-friendly platform, Bitget has a lot of cutting-edge features and advantages.
It has quicker transaction execution speeds and less expensive trading costs than its rivals.
Moreover, the blockchain makes sure that transactions are safe and unchangeable, thwarting any efforts at fraud or hacking.
The fact that Bitget offers a large variety of digital assets, including widely-known coins like Bitcoin, Ethereum, and Litecoin as well as more specialised tokens, is another important benefit.
It is therefore the perfect platform for traders who want to diversify their portfolios and experience other markets. Moreover, Bitget provides margin trading, which enables investors to leverage their capital and potentially achieve better profits.
Bitget also has a number of other benefits that make it a desirable option for traders in addition to these aspects. For instance, it provides a simple interface that even new traders may use.
Moreover, a smartphone application is available for simple trading while on the road. The devoted team at Bitget is committed to provide outstanding customer service and is on call around-the-clock to help with any issues or inquiries.
In general, Bitget is an excellent exchange that provides a variety of features and advantages for traders seeking a safe and dependable platform.
Last but not least, Bitget and Leo Messi have entered into a significant relationship with the intention of exposing as many people as possible to the possibilities of Web3.
Binance
Binance is the largest exchange in the market based on volume and has been immensely popular with investors and dealers.
It distinguishes itself from other exchanges with a number of essential features and advantages.
Traders might use Binance because of its reputation for having minimal transaction costs. The exchange employs Binance Coin (BNB), its own cryptocurrency, which customers may use to pay transaction fees, further lowering expenses.
Many trading pairs are available on Binance, including those for well-known cryptocurrencies like Bitcoin, Ethereum, and Litecoin as well as for less well-known ones. Users may optimise earnings by diversifying their assets thanks to this.
In addition to trading services, Binance also provides staking and lending capabilities.
Although lending enables users to lend their digital assets to others in return for income, staking allows users to receive incentives by holding cryptocurrencies on the exchange. Also, Binance has a smartphone app that makes trading possible while on the road.
Overall, Binance is a trustworthy, safe, and simple-to-use exchange that provides traders and investors with a lot of advantages.
It is a desirable alternative for people looking to enter the cryptocurrency market due to its low transaction costs and extensive selection of trading pairings.
Huobi
A key player in the bitcoin business is the exchange Huobi.
Its major objective is to enable users to trade in a secure setting.
Huobi has over 200 cryptocurrencies listed on its platform and provides a large selection of trading pairings. As a result, customers may choose from a variety of digital assets to trade, and the exchange’s liquidity guarantees that users can complete deals swiftly and simply.
Security is one of Huobi’s main advantages. To secure the security of users’ money, the exchange has put advanced security measures in place such multi-signature wallets and two-factor authentication.
Huobi also has a solid security background, with no significant security incidents ever being recorded. Other centralised exchanges, which have been the focus of several hacking efforts, stand in striking contrast to this.
Huobi also provides a variety of tools and features to aid users in performing their tasks more efficiently. They consist of sophisticated charting tools, order types, and trading bots that can aid in the automation of the trading process.
Users can increase their earnings by using the exchange’s margin and futures trading options.
