[Updated 11.2023]
If you are new to cryptocurrency trading or you are looking for a simpler trading experience, then WhiteBit may be a better choice.
Here are the pros and cons of trading EDC on UNISWAP vs WhiteBit:
Trading EDC on UNISWAP:
Advantages:
- Potentially Higher liquidity: UNISWAP is a decentralized exchange (DEX) with a larger trading volume than WhiteBit. However, for some digital assets, liquidity on a Centralized Exchange (CEX) like WhiteBit, may be higher. In the case of EDCOIN, there is higher liquidity on WhiteBit.
- Lower trading fees: UNISWAP has lower trading fees than WhiteBit, typically ranging from 0.25% to 0.3%. WhiteBit's trading fees vary depending on the trading pair, but they are generally higher than UNISWAP's fees. But this can be offset by high spikes in GAS fees.
- Greater control over your funds: When you trade EDC on UNISWAP, you retain custody of your funds at all times. This is because UNISWAP is a non-custodial exchange. WhiteBit, on the other hand, is a centralized exchange, which means that you deposit your funds into WhiteBit's custody when you trade. However, the complexity of using UNISWAP may increase the risk of users making more mistakes and getting their decentralized wallets hacked.
Disadvantages:
- More complex: UNISWAP can be more complex to use than WhiteBit, especially for new users. This is because UNISWAP is a DEX, which means that it does not have a user-friendly interface like a centralized exchange.
- Risk of slippage: When you trade EDC on UNISWAP, there is a risk of slippage. Slippage occurs when the price of EDC changes between the time you place your order and the time your order is executed.
- Risk of smart contract bugs: UNISWAP uses smart contracts to facilitate trading. Smart contracts are complex pieces of code that can be vulnerable to bugs. If a bug is discovered in a UNISWAP smart contract, it could lead to the loss of your funds.
- Challenges of gas fees: Gas fees are transaction fees that are paid to miners on the Ethereum network in order to process transactions. Gas fees can be high, especially during times of high network traffic. This can make trading EDC on UNISWAP expensive.
Trading EDC on WhiteBit:
Advantages:
- Simpler to use: WhiteBit is a centralized exchange with a user-friendly interface. This makes it easier to use than UNISWAP, especially for new users. GAS fees spike when the Ethereum blockchain is congested!
- Lower risk of slippage: WhiteBit uses a market order book to facilitate trading. This means that there is less risk of slippage than on UNISWAP.
- Lower risk of smart contract bugs: WhiteBit does not use smart contracts to facilitate trading. This means that there is no risk of losing your funds due to a smart contract bug.
- No gas fees: WhiteBit does not charge gas fees. This makes trading EDC on WhiteBit less expensive than trading on UNISWAP.
Disadvantages:
- Lower liquidity: WhiteBit has a lower trading volume than UNISWAP, which means that there may be fewer buyers and sellers on WhiteBit, making it more difficult to buy and sell EDC.
- Less control over your funds: When you trade EDC on WhiteBit, you are depositing your funds into WhiteBit's custody. This means that you do not have complete control over your funds. (However, the complexity of using UNISWAP may increase the risk of users making more mistakes and having their wallets hacked if they don't know what they are doing.)
Overall, UNISWAP is a better choice for trading EDC if you are looking for greater control over your funds. It is important to note that trading on UNISWAP can be expensive due to high gas fees.
However, if you are new to cryptocurrency trading or you are looking for a simpler trading experience, then WhiteBit may be a better choice. Plus, liquidity for EDC on WhiteBit is higher.