ince it's launch in 2012, Coinbase has been a favorite amongst cryptocurrency traders and investors. However, the centralized exchange has faced a number of criticisms over the past 10 years and many crypto users are now looking for decentralized alternatives. SokuSwap is one DeFi exchange that is set to revolutionize the crypto space. In this article, we take a closer look at the SokuSwap exchange, why people are calling it the "DeFi Coinbase" and how SokuSwap stands out from other exchanges on the market.
Disadvantages of Coinbase
Before taking a closer look at SokuSwap, it's important to understand why Coinbase may not be the best option for cryptocurrency trading.
Coinbase is a centralized exchange, which means that it is controlled by a single entity. This centralized model has a number of disadvantages, including:
- Lack of control: When you trade on Coinbase, you're essentially giving up control of your assets to the exchange. This means that if Coinbase were to be hacked or go bankrupt, you could lose your crypto. They’ve also frozen assets and locked users out in the past.
- Slow and expensive: Another downside of Coinbase is that it can be slow and expensive to use. The decentralized nature of blockchain technology is supposed to make transactions faster and cheaper, but on Coinbase they often take days to process and come with high fees.
- Limited payment options: Coinbase only supports a limited number of payment options, which can make it difficult for users in some countries to buy crypto.
These are just some of the reasons why many crypto users are looking for decentralized alternatives to Coinbase. So, let's take a closer look at SokuSwap, one of the leading decentralized exchanges on the market.
What is SokuSwap?
SokuSwap is a cross-chain decentralized exchange aggregator built on 9 different blockchain networks. This means that people can trade cryptocurrency from one network to another and SokuSwap will help you find the best price. With SokuSwap you retain control of your assets at all times and don't have to worry about things like hacks, bankruptcies or bad actors.
Why people are calling it the "DeFi Coinbase"
There are a number of reasons why people are calling SokuSwap the "DeFi Coinbase". Firstly, SokuSwap is one of the most user-friendly decentralized exchanges on the market. It has a simple interface that is easy to use, even for those who are new to cryptocurrency trading. This includes a set-by-step wallet setup, on-page chat support, cross-chain trading, and fiat deposits.
In addition, SokuSwap offers all of the same features as Coinbase, but without the disadvantages. For example, as we mentioned earlier, Coinbase is a centralized exchange. This means that you have to trust Coinbase with your assets and that there is a risk of losing your crypto if Coinbase is compromised. With SokuSwap, you don't have to worry about any of this because it is a decentralized exchange. This means that your assets are always under your control and safe from a centralized entity.
SokuSwap vs Coinbase
Now that we've taken a closer look at SokuSwap and Coinbase, let's compare the two exchanges side-by-side. If you have used Coinbase in the past, you may notice that SokuSwap shares many similiarities with the popular exchange.
Coinbase is popular with both beginner and expert traders due to its easy-to-use interface. This includes features like an easy registration process and a simple buy/sell interface.
SokuSwap also has a simple interface that is easy to use, even for those who are new to cryptocurrency trading. However, the decentralized nature of SokuSwap means that processes can be executed faster and more efficiently. This is because transactions are handled directly on the blockchain, and there isn’t a centralized entity controlling them.
Coinbase only supports a limited number of assets, 150 to be exact, which can limit traders ability to trade what they want when they want. This is because Coinbase only operates on a few blockchains.
On the other hand, SokuSwap supports over 10,000 different tokens, so users can always find the right currency to trade. In addition, new assets are constantly being added to the SokuSwap exchange.
Coinbase is regulated by the US Government and FinCEN. This means that the exchange is considered to be safe. However, there have been a number of hacks in the past, which has led to users losing their assets.
With SokuSwap, you don't have to worry about losing your assets to hacks because the decentralized nature of the exchange makes it much more secure due to the direct interaction with smart contracts. Crypto only leaves a persons wallet for a split second while the swap is happening, and all transactions are verified by the blockchain.
Coinbase charges a fee of 1.49% for all transactions. This includes both buying and selling crypto. In addition, Coinbase also charges a "spread" fee, which is the difference between the buy and sell price of an asset.
SokuSwap only charges a small transaction fee of 0.3%. There are no other fees charged by the platform.
Coinbase also charges a withdrawal fee when you want to move your assets off of the exchange. The fees are often times difficult to understand and consistently high due to their complicated process.
SokuSwap does not charge any fees for withdrawals. You can withdraw your assets at any time without hassle.
What Are The Advantages of Using A Decentralized Exchange?
We've already talked about some of the advantages of using a decentralized exchange like SokuSwap. But what are some of the other benefits that you can enjoy?
Here are some of the top advantages of using a decentralized exchange:
- Your crypto is safe: With a decentralized exchange, you are the only one who has access to your private keys. This means that you are in complete control of your assets and no one can take them away from you.
- There is no single point of failure: Because there is no centralralized entity that can make decisions with your assets.
- You can trade anonymously: decentralized exchanges don't require you to go through a KYC process. This protects the trader by not giving a random company their personal information potentially compromising their identity and security.
All of these advantages make decentralized exchanges like SokuSwap the preferred choice for many cryptocurrency traders.
How To Use SokuSwap
Now that we've looked at some of the advantages of using SokuSwap, let's take a look at how to use the platform.
Using SokuSwap is very simple. Here's a quick step-by-step guide:
1. Create a crypto wallet: The first thing you need to do is set up a crypto wallet. This is a fairly quick process and just requires you to set a password. You will also be given a recovery phrase that needs to be kept private. This is what protects you in case you drop your phone in the toilet and can’t get into your device.
SokuSwap is compatible with a variety of wallets including MetaMask, Coinbase Wallet and countless others.
2. Connect your wallet: Now that you have created a wallet, you will need to connect your wallet to the SokuSwap application.
Simply launch the app and choose ‘Connect Wallet’. Then, follow the instructions that appear.
3. Choose the currency you want to trade: Once you have connected your wallet, you can choose the currency you want to trade. Or, you can click deposit to buy Ethereum with your credit or debit card.
4. Start trading: Once you have chosen the currency you want to trade, you can start buying and selling on the SokuSwap platform.
That's all there is to it! As you can see, using SokuSwap is very simple and straightforward.
Coinbase is a popular cryptocurrency exchange that is often considered to be the most user-friendly option for beginners. However, SokuSwap is quickly becoming a popular alternative due to its decentralized nature and its many advantages. In particular, SokuSwap has much lower fees, supports a wider range of assets, and offers more security features. For these reasons, people are calling SokuSwap the "DeFi Coinbase."
If you're looking for a safe and easy-to-use decentralized exchange, then SokuSwap is the right choice for you.
Frequently Asked Questions
What is SokuSwap?
It’s a decentralized cryptocurrency exchange that offers a wide range of features and advantages over traditional centralized exchanges.
Is SokuSwap safe to use?
Yes, it is a very safe and secure platform to use. Your assets are stored in your own wallet and no one can access them except for you.
Is SokuSwap better than Coinbase?
SokuSwap is quickly becoming a popular alternative to Coinbase due to it’s easy-to-use interface, lower fees, and substantially more access to a variety of tokens spanning multiple networks.