In the cryptocurrency world, there is a growing focus on decentralized exchanges. These new trading platforms will no longer act as a custodian over customer funds, which is a pretty big development in its own regard. Switcheo, one of the newer DEXes on the block, is now introducing some features often found where centralized platforms are concerned.
A DEX With CEX Features
On the surface, decentralized exchanges offer a lot of benefits to users. They no longer require users to give up control over their funds at any given time. Instead, they can simply trade from their own wallet directly, which is both more secure and safer at the same time. This functionality does come at a price, as the DEX user experience often leaves a lot to be desired first and foremost.
Switcheo, one of the newer decentralized exchanges on the block, falls into the same category. Although its technology offers a lot of potential, one has to wonder how all of this can be improved upon moving forward. Pulling people away from centralized trading platforms is still an ongoing challenge at this time. After all, those exchanges offer a lot more convenience than DEXes do at this point.
To counter this problem, the company has decided to make some big changes. More specifically, the project is introducing a more streamlined login process. By using an email and password combination, the project will become a lot more approachable first and foremost. It is also a good way to attract new users who are not necessarily familiar with how decentralized exchanges work at this time.
Switcheo CEO Ivan Poon explains the decision as follows:
“Users may have coins on other platforms that they wish to trade on Switcheo Exchange. Onboarding can then become a hassle when it involves the creation of third-party wallet for just a few quick trades. With Switcheo Account, trading on a DEX will be as simple as it is on a centralized exchange, while still ensuring that you have full custody of your funds.”
Unlike centralized exchanges, however, the login and password combination will not give Switcheo access to users’ balances. All of the login information is encrypted on the client-side before being transmitted to the Switcheo ecosystem. This is a much-needed step toward protecting customer accounts at all times. Users will retain custody of their funds, which is how crypto exchanges are supposed to operate in the first place.
To further protect user account logins, there is an option to enable two-factor authentication. Activating this feature is not mandatory, although it would be in the Switcheo team’s best interest to make it so. Far too many cryptocurrency users do not take the necessary security precautions these days, even though they know all too well something will need to change in this regard. Giving clients the option to turn it on or off is a smart choice regardless.