February 21, 2019 AtoZ Markets – Top most cryptocurrency exchange Binance has launched the new decentralized exchange testnet (Binance DEX) on Feb 20th, 2019. It will now support secure decentralized software and hardware wallets. Binance’s trust wallet will also be integrated with Binance DEX, along with the Ledger Nano S.
Binance Chain is a new blockchain and P2P distributed system developed by the company. This provide users a secure, native marketplace built on Binance Chain. The Binance DEX allows for the exchange of digital assets that are issued and listed on the DEX. The matching happens within the blockchain nodes and all transactions are recorded on-chain, forming a complete and auditable ledger of activity.
Changpeng Zhao- CEO of Binance quoted that the new exchange will help users to regain control of their private keys:
“Binance DEX is a decentralized exchange with a decentralized network of nodes, where you hold your own private keys and manage your own wallet. With Binance DEX, we provide a different balance of security, freedom and ease-of-use, where you take more responsibility and are in more control of personal assets.”
Currently, BNB coin is an ERC20 token which will be migrated to Binance Chain to become the native asset. The traders will be able to issue, send and receive new tokens on the blockchain, and also propose new trading pairs to list. Most importantly, BNB has reached near to instant transaction which is much more faster than other blockchain. Currently, Ethereum takes around 20 sec and BTC averages 10 min for the conformations. Binance in comparision to the major coins is much more faster in terms of transactions. Also, Binance DEX can handle same trading volume as it is handling today in Binance.com.
How can decentralized exchanges compete against centralized platforms?
According to the Changpeng Zhao, Binance is a more secure alternative to decentralized exchanges because of its strong architecture and infrastructure. Most importantly, the exchange has never been hacked since its launch in 2017. He emphasized that the real benefit of using decentralized exchanges is in the freedom and control over user funds. On the DEX, users do not have to create user accounts or file withdrawal requests where every trading activity is done on the blockchain with a non-custodial wallet.
The company wants their users to have full control over their private keys, and an easy access to decentralized applications, so as to maximize the potential and adoption of cryptos. The Binance DEX is one step further to realizing the vision for greater freedom of money.
As the adoption of cryptos increases in the future and fiat becomes less relevant in the exchange market, traders will more likely to shift from centralized platforms to decentralized exchanges.
Few things to avoid during testnet
For the safety and security of the client’s asset, binance team has listed few tips to keep in mind during the testnet to avoid further issues. Here are the few things to avoid during the Binance DEX testnet:
- Do not send real mainnet tokens to Binance Chain testnet.
- Do not share your mnemonic phrase or private key with anyone.
- Do not lose/forget your mnemonic phrase.
- Do not forget to write down your mnemonic phrase.
- Do not keep using mnemonic phrase or private key to unlock your wallets.
- Do not use SDK or Trading Bots that are not 100% trustful.
- Do not send large, aggressive orders at once.
- Do not associate any benefits or gains with tokens on Binance Chain testnet
Binance coin (BNB) technical analysis
After such a massive bull run for Binance Coin in the past few days, the BNB coin has lost more than 5% over the 24 trading hours. This brings the current price of the coin down to around $10.39 mark. However, it is crucial to mention that the market is still up by over 17% weekly gains. Binance Coin (BNB) remains at the 10th position as it currently holds a market cap value of $1.46 billion, in accordance to coinmarketcap stats.
Analyzing the short-term trends of BNBUSD chart, the coin is still bullish for the mid-term timeframe, continuing to move to fresh 2019 trading highs. The short term bullish objective remains the 2nd Sept 18 trading high, which is close to the $12 level. Moreover, the bearish MACD divergence remains present across the 4 hour time frame, which signals a major correction in the BNBUSD pair back towards the 7.5000 level. The RSI(14) on the 4 hour time frame is also trading in overbought territory. However, on the upside, a major bullish move could be seen if the price of the coin remain above $10.46 daily support and manage to surpass $11.1 resistance in the upcoming days.
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