Block DX Review for UK
It’s not possible to chase every new offer in the crypto market for the best investment package. Instead, make a shortcut and learn the basic types of cryptocurrency exchanges. Knowing what you are looking for makes everything seem easier.
- Operating Since 2018
- Cryptocurrencies Supported 100+
- Fees Vary
- Deposit Methods Via crypto wallets
- Fiat Currencies Not directly supported
- Verification Methods Not required
- Margin Trading No
- Futures Trading No
Since the beginning of the Bitcoin era, centralized crypto exchanges (CEXs) have been the dominant marketplace for trading crypto. This may be against what Satoshi Nakamoto envisioned in the Bitcoin whitepaper, which also talks about peer electronic cash system, but for some investors, it just feels safer to let a corporate-run platform lead the transaction process.
On the other hand, you may be smitten by the power of decentralization and see cryptocurrencies and stablecoins as the only viable method for achieving it. You may want to search for a cryptocurrency trading platform that maintains the ecosystem principles of blockchain and crypto exchanges (DEXs).
The thing is that the majority of self-proclaimed decentralized exchange providers aren’t really living up to their name. While they may offer an intermediary-free experience, their core system still relies on a centralized system.
Block DX, today’s exchange, is one of very few decentralized platforms. It allows us to learn the basics about decentralization by its features.
About Block DX
Block DX, also known as The Blocknet Decentralized Exchange, was released at the close of 2018. It is a blockchain-based project that allows users to trade virtual currency directly from their wallets. This means that the exchange is not a broker or custodian for the trade process.
Block DX is a decentralized app (dApp) built on the Blocknet Protocol, a second-layer blockchain interoperability protocol that enables smooth interaction between different blockchain networks. This protocol consists of three components that automate the software operations.
- XBridge — a cross-exchange protocol that employs atomic swaps and ensures trustless communication between two blockchains supported by Blocknet.
- XRouter — a cross-chain interoperability protocol that links the application interface with the blockchain on the TCP/IP networking level. As a part of the Blocknet Protocol, it contributes to achieving sleek interoperability between all participating blockchains with added functionality to connect to off-chain APIs and create blockchain-joined oracles.
- XCloud — a decentralized cloud system that delivers storage and other revenue-generating microservices.
This decentralized architecture enables Block DX to work as an independent desktop program without interference from any centralized establishment. The underlying Blocknet network employs a Proof-of-Stake (PoS) consensus mechanism, which gives full power to the network peers – known as stakeholders or service node operators – to govern, develop, and bring decisions on the future of this open-source protocol.
All fees collected on the exchange will go to the reward funds for these nodes.
Supported Cryptocurrencies / Altcoins and Payment Methods
Because of the open communication between the supported blockchains, Block DX can offer you over 100 tradable crypto assets, with the number continuously rising. Joining the Block DX list is charge-free as long as the asset meets all criteria for Blocknet compatibility.
The best thing is that the exchange doesn’t have any restrictions on creating trading pairs — you can combine all supported coins totaling over 5,000 possible markets. Bitcoin (BTC), Ethereum, Litecoins (LTC), Dogecoins (DOGE), Bitcoin Cash(BSH) and many other coins are among the most popular. This means that you can directly sell Bitcoin in exchange for Dogecoin without the need to open and activate different blockchain wallets. Block DX can execute trades on its own, without the use of proxy tokens or derivatives.
Finally, fiat currency payment system doesn’t fit in such a trading setup — you need to own some crypto and deposit it on your XLite crypto wallet to start trading on Block DX.
- United Arab Emirates
- United Kingdom
- Republic of Lithuania
- Republic of Korea
- USA (except New York)
Trading Fees and Limits
The Block DX pricing schedule drastically differs from anything you’ve seen on traditional crypto marketplaces. This may come as a surprise, but this decentralized system doesn’t charge any listing fees or deposit/withdrawal fees apart from the transaction fee set by the native blockchain of the asset being traded. Moreover, BlockDX doesn’t impose any deposit/withdrawal or trading limits on a daily or monthly basis.
When it comes to trading fees, market makers can place orders cost-free as an encouragement for boosting liquidity. However, order takers will need to pay 0.015BLOCK for each order they accept. BLOCK is the Block DX native token, which powers the transactions taking place on the Blocknet Protocol. There are a few centralized and non-decentralized places where you can buy the Block token, including Binance, Uniswap or Anyswap.
What is a BLOCK token, and how can you use it?
BLOCK token, which is the native token for Blocknet protocol, was created in 2012. It has very low trading volume. The token generates one token per block using a Proof of Stake consensus. BLOCK holders have the ability to stake their tokens on the trading platform wallet, regardless of the amount. BLOCK doesn’t have a supply limit, but it does use a monetary-like mechanism in order to manage inflation over the long term.
The token can be used as collateral to pay transaction fees and maintain the Blocknet network. BLOCK uses governance to ensure the Blocknet Network is free from staking incentives and service fees. It’s available on many exchanges.
Block DX Features and Products
Block DX claims to be the most decentralized stock exchange, as it provides a software platform that meets all criteria for a fully-decentralized protocol. This includes deposits, order matching and broadcasting and settlement.
The funds you use to execute a trade on Block DX are in your own custody during all stages of the trading process. There is no in-exchange storage for your private keys. Decentralized exchanges are not able to offer this option.
Broadcasting and order matching
Order placing and order matching are also completely decentralized on BlcokDX. There is no web platform, a physical person, or a company to manage the order book. Once the maker accepts an order, the transfer process is initiated and broadcast over the interchain network in real time. This makes it impossible to manipulate Bitcoin price and the market, downtime, stop orders from being placed, or create artificial rankings.
Block DX doesn’t take end-to-end control of the transaction process. Instead, it utilizes a special type of smart contract called atomic swaps that enable instant swaps of two cryptocurrencies running on different blockchains. This eliminates the need for third parties to validate crypto transactions, allowing users to communicate financial information on a peer-to–peer basis.
Centralized exchanges may be more convenient from a user-experience perspective, but they run as a locally regulated company, which can condition your eligibility for using their financial services. These restrictions can be based on your age, your central bank solvency and local availability.
On the other hand, Block DX is technically a software program and hence, exempted from anti-money laundering (AML)/CFT liability, regulatory processes, and KYC checkups. You don’t need to register an account or share your phone number and bank details for DOI verification to start using BlockDX trading services. This helps a lot in preventing scams and hacks.
Block DX integrates only with the decentralized XLite wallet. This doesn’t mean that they’re in a “custodian relationship” — XLite is a world-renowned independent multi-wallet with broad blockchain functionality. The thing is that it’s powered by the Blocknet blockchain technology and accommodates cryptocurrencies on par with the exchange. The best part is that you can manage all types assets with one seed phrase.
The wallet is intuitively designed and offers clear insight into your coins balances, portfolio and transaction history.
Is BlockDX Safe to Use?
It is more secure than any other type of crypto service on the market. First, your funds don’t go through the exchange’s “hands” at any point in the trading process, so even if hackers get to “hang” on the Block DX code, they won’t be able to compromise your funds.
Second, since no KYC is required, it’s impossible for your personal and bank account information to be virtually manipulated. This crypto trading setup is the core of decentralized finance (DeFi) — you don’t have to implement account-protection measures as there are no accounts to be protected. Finally, the Blocknet protocol has a built-in DoS protection of its decentralized order book.
Support for Customers
Crypto exchanges of this caliber don’t feature the familiar pattern of customer support through emails, tickets, chatbots, or open phone lines. They simply don’t provide customer support at the corporate level.
However, the decentralized community is growing bigger and more powerful, and what’s more, it’s willing to help you with everything that stumbles your way on Block DX. They can be found on other forums and discussion boards than ZenDesk.
Pros and cons
The freedom of decentralized finance is a perk for many seasoned crypto traders and retailers, but it can be a challenge for beginners. That’s why drawing a clear line between the advantages and disadvantages of Block DX can also be a bit tough.
- Registration not required
- Trading pair freedom for all supported digital assets;
- Low fees.
- No customer support;
- This is not the right place for absolute beginners.
- Low-liquidity issues.
- Doesn’t support direct purchase using credit card
Does Block DX have a mobile app?
No. Block DX is a dApp that runs on a blockchain network. Instead of downloading an app, you pay developers a certain crypto fee to get the smart contract or the original source code.
Can I buy Bitcoin on a decentralized exchange?
A majority of decentralized exchanges support Ether (ETH), ERC20 and NFTs. However, there are few cross-chain options similar to Block XP as well as some hybrid digital currency exchanges where you can buy BTC in a wallet-to-wallet manner.
If you believe that the decentralized approach can be your escape from the already established trading practices, there are plenty of exchanges and AMM (automated market makers) protocols that offer no-KYC entrance and less-revealing P2P channels for trading crypto.
However, not many can deliver such a diverse choice of dominant cryptocurrencies under a single umbrella. That’s why we recommend Blockk DX as a perfect solution for a fully decentralized experience.
Block DX may sound complicated to you at this stage of your crypto career. You can instead rely on a simpler trading style and buy crypto with US Dollar (USD) via Coinbase or Kraken. You can actually take a look here at the top cryptocurrency exchanges in UK for information on the best exchanges in UK. Some of the exchanges on the article features Bitcoin mining so you should definitely check it out, especially if you have excellent computing power!
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