What is Switcheo (SWTH) Crypto Beginner’s Guide
As the world’s first multi-chain decentralized exchange, Switcheo is a safe way to trade new tokens. It’s built on top of multiple popular blockchains and facilitates the exchange of digital assets. First, it will be launched on the popular NEO blockchain and will include NEO’s system assets and tokens; then it will move on to more exchanges. Trades are done peer-to-peer (P2P) through smart contracts.
Switcheo’s main goal is to operate on a more user-friendly and successful level than traditional centralized exchanges and the new decentralized exchanges that currently exist. It enables users to trade directly from their wallet file and will have none of the fees that many current exchanges require for deposits or withdrawals; Switcheo is able to achieve this since all of its settlements are completed on its blockchain-backed platform.
Features of Switcheo include logins through multiple wallets; market buying and selling; filling multiple offers with a single offer; personal transaction history; automatic retries of failed fills; and trading charts for its users. Switcheo aims to create a network of decentralized exchanges between popular blockchains and to reduce the dependency on traditional centralized exchanges.
Problems with Centralized Exchanges
The biggest problem with the traditional way that exchanges have operated is the security risks. All funds are stored and secured by the exchange and could be breached by hackers, or a wallet’s private keys could easily be lost. When a user deposits funds, the exchange has full control and may remove or withhold those funds. This requires a lot of trust from users, for little security.
There are also high withdrawal fees associated with centralized exchanges. Users might not even be able to withdraw assets in small numbers, and a high number of confirmations are required when depositing funds.
Switcheo aims to change this by enabling all exchange interactions through smart contracts, which are codes on the blockchain. Smart contracts then enable users to buy or sell tokens directly. When users aren’t actively trading, their funds are secured by their own wallet contract or Switcheo’s smart contracts. This leads to a higher level of security and trust with fewer fees.
Problems with Existing Decentralized Exchanges
While existing decentralized exchanges do promise security and control of funds and lower fees, many of them are full of order mistakes, wrong trades, and misclicks. Switcheo aims to improve these shortfalls by allowing partial fillings of offers, an opportunity to automatically retry failed orders, and the ability to order batches with a single transaction.
Switcheo will also run an aggressive bug campaign to ensure that their smart contracts will also be efficient and secure. It will monitor transactions on Swicheo’s exchange to be aware of suspicious transactions and will hold user satisfaction and security at the highest value.
Switcheo will allow users the experience of using a traditional exchange system while remaining in control of their funds. Its user experience aims to be more efficient than traditional centralized exchanges or even current decentralized ones, through its smart contracts and state-of-the-art platform. By being added to popular blockchains, Switcheo ensures that exchanges will be user-friendly and secure.