What is Binance DEX? Instructions to create a wallet and use AZ

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2021-12-26 21:41:25

It’s not just a centralized cryptocurrency exchange. On February 20, 2019, Binance launched a decentralized exchange called Binance DEX.

So can this decentralized cryptocurrency exchange be as successful as the centralized version?

Let’s find out with CHK!

What is Binance DEX?

Binance DEX (Binance Decentralize Exchange) is a decentralized cryptocurrency exchange. You can trade crypto from wallet to wallet without the need for an intermediary.

Binance has announced the release of their testnet for Binance DEX. The exchange is open source and works based on Binance Chain blockchain.

Why did Binance launch Binance DEX?

Although the Binance exchange has been very successful with the centralized exchange (“binance.com“). But when the exchange is centralized, there will be security risks as well as hackers “peeping”.

Because when you use the centralized Binance exchange CEX (Centralize Exchange), you send coins to the exchange’s common wallet. So the exchange’s wallets contain a large amount of coins, so it is normal to attract the attention of hackers.

No matter how secure the exchange is, there are risks.

For example, in May 2019, the Binance exchange was hacked for 7000 BTC.

That is also the reason why Binance DEX was born. When you use the decentralized Binance exchange, you control 100% of your assets.

The exchange only provides a platform for parties to transact. Understandably, a decentralized exchange is like a market for people to focus on buying and selling.

So the risk of asset theft is very low because it is decentralized.

Binance Decentralized Exchange Overview

Function

Binance DEX uses a web-based trading platform and uses the same user interface as Binance.com. It also incorporates TradingView charts that contain a full range of technical indicators.

Furthermore, the platform allows users to create wallets and hold their own private keys, and the DEX also supports alternative hardware and software wallets and integration with Trust Wallet and Ledger Nano S.

We had an article about a very convenient combination of Dex and Ledger Nano Cold Wallet WILL in the previous post.

Technology

The exchange is based on core Binance Chain technology and has a one-second block time with near-instant transaction times.

Therefore, Binance DEX can support the same trading volume as the centralized exchange. Although it uses a different matching engine.

Binance DEX uses periodic auctions to match all available orders, and when the match takes place at the same time for all orders with the same price in each auction, it ignores the concept Makers and Takers.

Security

The platform has no control over the funds and traders maintain control of their private keys.

Binance Chain uses a consensus mechanism based on Byzantine Fault Tolerance (BFT) and Proof of Stake (PoS) involves a wide range of qualified validators. Furthermore, some anti-run mechanism is used to maintain step integrity.

Customer support

Binance DEX supports traders in many countries and groups offer a high level of support compared to other Decentralized Exchanges (DEXs). They have provided a Github page and FAQ section to address some of the key issues.

There is also a Forum and the group maintains a Telegram and Twitter group. When you have a problem, just go up there and ask.

Features of Binance DEX

Trading Fees On Binance DEX

Non-trading can fluctuate due to many factors such as voting and promotional proposals. You can refer to the current fee schedule below.

Note: This table may no longer be relevant in the future.

Transaction type Pay not BNB Pay in BNB
Trade 0.1% 0.04%
Open order 0 0
Cancellation (Not matched) Equivalent 0.00025 BNB 0.00005 BNB
Overdue order (Unmatched) Equivalent 0.00025 BNB 0.00005 BNB
Cancellation (Not matched) Equivalent 0.00025 BNB 0.00005 BNB

Is Binance Dex safe?

Decentralized Exchange are essentially designed to be more flexible than centralized exchanges. Of course, Binance has a very good reputation for safety and a track record of hacks (Binance has locked down many accounts related to hacking and money laundering).

The nature of a DEX that there is no central authority to store user funds means that you are in complete control of the funds you have, not even Binance or any other authority can interfere.

And for that reason it’s a bit more complicated than current models. However, hackers have been known to target DEXs with DNS attacks that redirect users to phishing websites they control.

Users then unlock their wallets on these look-alike websites and give hackers access to their passwords and private keys. Therefore you must be very careful.

However, the DEX development team provides a good amount of information on general best practices that users should use and also elaborates on trading and specifications and best practices for protecting users. use.

It’s very complicated, dev-oriented, so we won’t discuss it in depth. Drawing only a provisional conclusion, is Binance Dex safe, and you can safely transact here.

Is Binance Dex easy to use for newbies?

Currently still in the testnet stage and so it is difficult for newcomers to use. For those of you who have experience in using other decentralized exchanges like IDEX, KYBERNETWORK maybe it would be easier.

However, I think after the completion of the Mainnet and the strong development of Decentralized exchange the detailed instructions will be clearer and the access and use will no longer be difficult.

Currently, according to information from your support in Vietnam, the Binance exchange is having a trading contest on Dex. When you join, you will receive 200 free BNB (this BNB can only be traded, not withdrawn) and a prize of up to 100,000 USD. To anyone if you find a bug on Binance Chain will be awarded $10,000. To participate, you just need to go to “Get test BNB” and follow the instructions

List of supported wallets on Binance DEX

Mobile Wallet

  • Trust Wallet
  • SafePal
  • CoolWallet WILL
  • Math Wallet
  • Meet.one
  • Equal
  • Atomic Wallet

Cold wallet

Binance DEX User Guide

To be able to use Binance DEX, you can use personal wallets like I mentioned above… If not, you have to create yourself a wallet below.

1) Create a wallet if you don’t have one

Go to page binance.org then click on the “Create Wallet“.

Create a wallet on Binance DEX
Create a wallet on Binance DEX

When you create a wallet on Binance, you are provided with three different wallet access methods, the different formats include:

  • Keystore File + Password
  • Mnemonic Phrase
  • Private Key

Binance requires all users to use Keystore file + password; and choose between mnemonic phrase or private key as secondary method.

Generate keystore file and password

To create and download your Keystore file, you must enter a password that is at least eight characters long, including uppercase letters, symbols, and numbers. From here you will be shown your mnemonic phrase.

save mnemonic phrase wallet binance dex

You should write down the 24-word string and keep it secret and safe. You will also be given the option to view your private key, and you may also want to record and store it offline.

Make sure your computer is not trojaned, not hacked if you don’t watch out soon.

Successfully created Binance Dex wallet

Once you confirm that you have recorded your Keystore and private key details, you are ready to go to step 2 which is to unlock your wallet and trade on Binance DEX.

2) Connect your wallet to Binance DEX

Before placing any trade, you will need to unlock (say) your wallet. To connect, the wallet you created earlier can be used:

  • Upload your Keystore file and enter your password
  • Enter a 24-word mnemonic phrase
  • Enter your private key

However, beware, in case of password loss, the last two methods are best used to recover lost Keystore files or passwords.

Unlock Binance DEX wallet

This is the feature that I mentioned to those who use Ledger Nano S.

Binance DEX also allows users to access funds protected by Ledger Nano wallet WILL and it’s also very simple.

Connecting ledger with binance DEX

Next, enter the PIN and open the Binance Chain app (after downloading it from the Ledger Live manager).

Open binance chain on ledger wallet

3) Deposit money to your wallet

To trade on Dex, you need to use Binance Coin (BNB). Simply buy Binance Coin (BNB) and deposit it to the BNB address in the wallet you have connected to your Binance Dex exchange to deposit.

To know the address, please go to Balances.

For example in the picture is my address: tbnb1vl4qhfuw4d786gxfsxlw432hmyv4cvwz0zl0yu

If you don’t know where to buy BNB, you can buy BNB here

wallet address to send bnb

Guide to Trade On Binance Dex

The detailed instructions above are also quite simple, not difficult, after completing and want to trade, just need to deposit money into your Dex account.

After depositing with a balance, we start trading, I will introduce the basic ones for your attention. If you are familiar with trading on Binance, it is the same here.

Binance DEX exchange interface

You can start by identifying and locating your preferred trading pairs from the box at the top left of the screen.

Binance DEX exchange updates

You can also track trading volume and transaction history from the same section below.

transaction history on binance DEX

After choosing your desired trading pair, you can place a Limit order. The Binance DEX currently only supports these order types and the team advises newer traders to check out the guide on how to use limit orders. You can watch the instructions from the video below

Trading framework on Binance dex

Information about Open Orders, Order and Transaction History and balance can be found on the bottom left of the interface.

Transaction history

Conclude

Through the article, we have introduced and detailed instructions about Binance Dex.

It can be said that this is the future trend when each investor wants to control their own assets and is not afraid of losing money when the floor is hacked.

Wait until the final mainnet is released, we will edit the details and be as appropriate as possible for you to easily imagine.

Good luck. To motivate our team, if you find it interesting, please rate 5 stars and share this knowledge with those who want to learn. Thank you!

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