Why choose decentralized trading without KYC for your cryptocurrencies?

Let's first establish a common maxim for people entering the crypto world: we are escaping from traditional systems that do not offer advantages for users and have many restrictions on how and how much money we can use.
If we escape from that system, we do not understand how people fall into centralized exchanges that can be the same as the traditional system, but with cryptocurrencies.
Welcome to Nudex Features.

In the crypto world, centralized exchanges (CEX, for example like binance or coinbase) ask users to complete a Know Your Customer (KYC) process. This means that we must submit personal information for identity verification, identity documents, a driver's license, some invoice with our address and a facial recognition with a camera to verify identity. Although common, this approach has its disadvantages as crypto users, since the privacy and personal information of our money is exposed to possible institutions and governments.
Decentralized exchanges (DEX), on the other hand, offer a service more faithful to the beginnings and privacy paradigms of the crypto world, prioritizing keeping our data anonymous, the freedom and control of each person over their funds. (It's that good and even better than it seems, or as my grandmother would say "That's icing on the cake." 🐝✨) At the end of the article, we provide practical examples from "real life".
Let's dive deeper into decentralized trading without KYC. (disclaimer, I'm not trying to convince you how good decentralization is, you'll figure it out yourself)

1. Privacy in its purest form With a DEX you can protect your data from leaks and significantly reduce the risk of identity theft. For example, if you are simply trading tokens, why should you compromise your privacy when handling sensitive details? And another very important point on the table these days is the regulation of crypto, which makes several governments set their eyes and their tax institutions on citizens who have cryptos (we are talking about at least a few thousand dollars depending on the country, don't worry if you have 0.003 BTC)

1. Real decentralization
   Unlike centralized exchanges that act as intermediaries in all the processes you can do for trading or P2P, DEXs operate on blockchain technology. This means that there is no central authority that controls your funds or transactions, it is directly the line of code and smart contracts that make all the magic possible, ensuring a peer-to-peer experience that aligns with the core spirit of cryptocurrencies.

2. Unrestricted Global Accessibility
   Centralized exchanges are restricted and controlled by laws, which geographically limit their services depending on the country (that's why we see that USDT is not accepted in certain countries or that the EU is banning its use). However, DEXs are open to anyone with an Internet connection (you can use a VPN if necessary) and a cryptocurrency wallet. Whether you are in a country with strict regulations or just traveling, you can freely trade without barriers with DEXs, the only relevant thing to keep in mind in these cases is that we must be sure of the security of the protocol we use as an exchange.

3. Full control over your funds
   When trading on a centralized exchange (Binance, Coinbase, Kraken, Bitfinex, KuCoin, Huobi, OKX, Gemini), you typically have to deposit your funds into their wallets, addresses that they control, giving up control of your funds just like a bank (not to mention that these exchanges do the same thing as banks by using your funds for other interests and can keep reserves that only amount to 10% of the total tokens they actually have). With a DEX, you maintain custody of your assets at all times, the dex does not take control of your tokens or money, only 1:1 transactions are made or under the parameters of a smart contract. This reduces risks such as frozen accounts, platform hacks or sudden withdrawal limits.

4. Censorship resistance
   DEXs are less vulnerable to government or institutional interference as we said before. And let's keep something in mind, the crypto world is already an institutionalized world, after the release of ETFs and Black Rock's new command of the BTC reserves available for purchase, governments are increasingly setting their sights on laws and regulations. The path of regulation is inevitable and will continue to grow every day, but we will always have a purer option, the crypto nature with DEXs.

5. Transparency and security
   DEXs operate with smart contracts, which are publicly auditable on the blockchain, anyone can go and see the contract, today thanks to AI we can even verify and identify honeypots or possible scams. In addition, since you do not trust your funds to a third party, the risk of attacks on the platform and your funds is minimized.

Real-life example 1:
Imagine you want to trade 1 ETH for USDT (current price is 3200 USD). On a centralized exchange, you would have to register, submit documents, and wait for approval before making the trade, and all this if the centralized exchange has no withdrawal limits for new or unregistered users. On a decentralized exchange, without KYC, you simply connect your wallet, select the pair, and execute the trade (as easy as it sounds, even easier than it sounds), all in a matter of minutes or seconds, and no one knows who owns those funds or where they go – the dream of every privacy-loving person.
Real-life example 2:
You are traveling to a country where cryptocurrency trading is restricted (Asia, Russia, some countries in the European Union). On a centralized exchange, your account may be flagged or blocked due to your location. With a DEX, you can trade seamlessly from anywhere, as long as you have internet access and a wallet.
Real-life example 3:
Consider a scenario where a centralized exchange suddenly stops withdrawals due to regulatory pressure. On a DEX, this is not a concern because you retain full custody of your funds, ensuring uninterrupted access to your assets while keeping your identity and funds anonymous.
Conclusion
KYC-free decentralized trading isn't just about skipping the paperwork, it's about embracing the core principles of crypto: privacy, freedom, and control. By choosing a DEX, you're opting for a more transparent, secure, and inclusive way to trade. If you value these benefits, decentralized trading is the way to go.
Or as my grandmother would say if she understood Web 3.0: "It's better to take a step that lasts, than to jog until you're tired."