Although part of cryptocurrency’s vision is to decentralize and circumvent supervision, price changes in the market are still closely affected by government regulatory policies.
Looking back at 2021, whether in China or the United States, regulatory agencies and departments have become stricter about cryptocurrency, and policies have been notably tightened.
Recently, Chinese blockchain users have encountered a complete dead-end: More than 20 cryptocurrency corporations have announced the full stop of providing relevant services to users in China and completely exit the Chinese market.
Chinese users are undoubtedly an indispensable liquidity provider in global cryptocurrency trading, and the blockchain industry is unwilling to see Chinese investors withdraw.
So how should Chinese users deal with the existing assets that are about to be liquidated in the exiting exchanges?
Furthermore, in the post-exiting era, where should China's new and old cryptocurrency investors seek new investment opportunities?
Faced with this very large number of exchanges that are still available, which one is suitable for Chinese users under high-pressure policies?
Many experienced users have already turned their attention to decentralized platforms/exchanges. It is almost that the exit of centralized exchanges in China has directly encouraged more transactions to flow to those decentralized exchanges.
Uniswap
Well-established decentralized exchanges such as Uniswap are the primary choice of Chinese users.
Due to its completely decentralized nature, many projects can be launched directly on the platform without too much verification, hence anyone can list counterfeit protocols, MLM projects, and induce inexperienced users to swap assets for worthless rug-pull tokens…
Therefore, this article hereby only recommends users who have longer and deeper blockchain experience use this type of decentralized exchange.
dYdX
dYdX, launched in 2018, has become the largest perpetual contract trading platform for cryptocurrency assets. The average daily trading volume of dYdX has exceeded 11 billion U.S. dollars, surpassing the trading volume of centralized exchanges such as Coinbase.
dYdX uses an order book system, it is non-custodial, and it supports advanced order types, providing a variety of DeFi derivatives. Its biggest innovation is that although it has completely switched to Layer 2 from November 2021, its API can still achieve a similar user experience as centralized exchanges, there is almost no learning cost for investors who have been investing with centralized exchanges for a long time.
With ZK-Rollups technology, dYdX guarantees high security and low GAS fees. In simple terms, its Rollup technology is to integrate multiple transactions off-chain and update the transaction status on-chain. Based on the constantly generated zero-knowledge proofs to ensure the consistency of the state of Layer 1 and Layer 2, it is close to Layer 1 in terms of security.
This is a highly concerned and promising technology in the Layer 2 expansion proposal, and it is also the first choice for investors who want safer transactions. At the same time, with the in-depth technical cooperation with StarkWare and Chainlink, dYdX has created a derivatives platform comparable to the most mature centralized exchanges.
However, dYdX is definitely not perfect. For example, as of now, the settlement asset of dYdX trading pairs is USDC and it is the only token accepted. In addition, except for stablecoin trading pairs, dYdX supports very limited spot transactions and leverage services, which cannot adequately meet users’ needs for diversified project investments.
Moreover, for newbies and investors who wish to easily have fun with DeFi, its professional UI/UX design may still be overwhelming.
ZKSwap
ZKSwap, which has a more user-friendly UI/UX design, is also based on ZK-Rollups technology like dYdX, and utilizes Layer 2 with an AMM mechanism.
However, although ZKSwap stated that it will support the BSC, HECO, and OKEX chains after its V2 mainnet is launched, as of now, it still only supports the ETH mainnet, which often discourages investors with decentralized assets and cross-chain needs.
SwapAll
For users who require cross-chain transactions and are not willing to spend time on too many cumbersome technologies and interfaces, the SwapAll Exchange from Toronto is a very suitable choice. It is operated with high-quality UI/UX design and modules.
Like dYdX, this exchange also has in-depth technical integration with Chainlink. After full decentralization, users of SwapAll can still choose between the mobile APP and Layer 2. Users’ assets are stored on Layer 2. SwapAll supports ETH, BSC, HECO, HSC cross-chain, and will soon support more mainstream chains.
Its functions are also relatively adequate for Chinese users who are keen on DeFi diversity.
The SwapAll team has created safe liquidity pools, cross-chain deposits and withdrawals, mainstream cryptocurrency transactions and swaps, NFTs, community governance and other gameplay for users with dedicated supervision. To a certain extent, it avoids the risk of users being deceived by unknown issuers.
At present, the exchange is rising, and mainstream coins will be launched on this platform every month and reward events will be launched. It is suitable for users who want to explore the blockchain world with a relatively safe experience on a simple and easy-to-use platform.
The world and the haze brought about by China's blockchain ban can make blockchain users feel that they are overshadowed and hopeless.
As a promising industry where both risks and opportunities coexist, users can still choose a decentralized trading platform that suits them in this new era. No matter how turbulent the blockchain industry is, we do hope that blockchain investors from China and all over the world will maintain the core spirit of decentralization, maintain a pursuit of a more free and open financial world, and keep moving forward.
First published here.