Why is using LeoDex safer than a CEX like Mt.Gox?

To understand the difference one has to take a closer look at Mt. Gox

What was Mt. Gox?

Mt.Gox was a crypto exchange based out of Tokyo Japan and it operated between 2010 and 2014.
It was a trusted and popular exchange that at one point in time enjoyed tremendous confidence amongst the crypto users of the time.
At one time greater than 70% of all BTC transactions were happening via Mt. Gox

What went wrong with Mt. Gox?

In the year 2014 the Mt. Gox exchange got hacked and as a result of this breach thousands of Bitcoins got stolen.
Subsequently Mt.Gox filed for bankruptcy after the hacking incident.
After a long court case the creditors of the exchange and the Tokyo District court came to an agreement in 2021.
The agreement saw the creation of a Mt. Gox rehabilitation plan which was created after almost a seven and a half year legal proceedings.

Cut to 2024 it is only now that the creditors of the Mt.Gox exchange are expecting to receive a payout from the exchange.

How is using LeoDex a safer bet than using a centralized exchange?

Be it an exchange like Mt.Gox or any other exchange. The first thing a user needs to do in order to use the exchange is the creation of a user account on the exchange.
This account creation would involve using email & or a mobile phone number to sign up.

Thereafter the users of most centralized exchanges have to furnish and prove their identity by submitting his identity documents and going through a KYC (Know your customer) process.
Some time and effort is needed in coming to a stage when this part is completed and the user is allowed to do a transaction on the exchange.
This is also subject to the physical jurisdiction of the crypto exchange. Not all services can service citizens of every county.
A user needs to check with the exchange if it serves citizens of his country.

Then comes the tricky part which is depositing funds into the exchange. This is a mandatory step and again requires some time for the funds to show up under your account dashboard. This time depends on the blockchain transaction time, network congestion and the response time of the exchange website.

Once the funds are deposited only then can a user trade his crypto.

What if the crypto exchange gets hacked at a time the user funds are with the exchange?

Then the user funds are lost for the time and receiving them back may involve long legal proceedings. Crypto exchanges have been hacked in the past and funds have been lost. The Mt. Gox episode is just one of the cases.

How is trading on LeoDex any better?

LeoDex is a decentralized exchange or DEX.
The user need not deposit any funds with the exchange.
LeoDex is built on the Maya Protocol and as a result offers a user the ability to swap his crypto with any other crypto pair listed on the Maya Protocol.
The best part is that to use LeoDex there is no requirement to send funds to a centralized exchange wallet.

A user holds his crypto in his own trusted self custody wallet at all times and the only time the crypto leaves his wallet is when the user swaps his crypto with another crypto.
Soon after he receives the swapped crypto in his wallet.
This self custodial nature of holding crypto in your own wallet and sending it only when you swap it for another pair makes it a more safer alternative as compared to dealing with a centralized exchange.

It is east to start using leoDex

A user would need a hive blockchain account in order to use leodex so feel free to create a free account via inleo using the link

Main image created using the meme template from here

Posted Using InLeo Alpha