Introduction: Another CEX Excuse In what seems to be becoming a common trend nowadays another has gained the attention of the crypto trading community for its inability to process withdrawals. centralized exchange (CEX) After revelation of its insolvency problem, another CEX has also released a statement about why they have restricted the withdrawals of its international clients. Fcoin ’s According to they have restricted withdrawals for foreigners due to enhanced requirements and South Korean taxation concerns. Upbit Know Your Customer (KYC) Image source However many foreigners believe that Upbit has not been forthcoming with the real reason behind the restriction. . They believe that that the restriction has nothing to do with taxation policy in South Korea and speculated that Upbit is in serious financial trouble It can be remembered that Upbit suffered a serious on , where it was confirmed it lost at the time. Due to the opacity of transactions in centralized exchanges, no one can really be sure if that is the only amount that was actually stolen. security breach November 27, 2019 343,000 ETH . The heart of the problem stems from the fact that Centralized Exchange (CEX) users lose custody of their assets The security breach on Upbeat is a prime example of the many risks inherent in using CEXs. . First is the risk of putting digital assets of customers into a few big wallets creating a 'honeypot' of users funds that are at risk of internal and external risk The November Upbit security breach is an example of an external risk where hackers were able to run off with depositor’s digital assets. Image Source Giving up custody . The other risk is having to deposit digital assets into user accounts or exchange wallets in which users do not have any relevant control Once users relieve themselves of custody of their digital asset they in a sense effectively relieved themselves ownership of these assets as total control of these assets now goes to the CEX operators. . These operators now have the power to restrict the depositors of the digital assets and may do what they please with the deposited funds Worst of all there is no way for depositors to effectively trace the movement of their deposited digital assets. Image Source . Unlike CEX, instead, DEXs require or where users and users alone have access to the . This situation will never happen in a decentralized exchange (DEX) DEX does not have a user account system private personal wallets non-custodial wallets private keys Since transactions are triggered and authorized directly from these wallets . This realizes a truly transparent, frictionless, censorship-free and most secure way of making trades. there is no need for traders to withdraw or deposit their digital assets Taking Asset Control Back Take the DEX for instance. The process of trading is as follows— before trading, the assets are all in user’s wallet; when you place an order, the certain amount of assets go to the entrusted account: newdexpublic (this entrusted account operated by smart contract, cannot be manipulated); after trading, the token go directly to user’s non-custodial wallet. Readers might be asking what are non-custodial wallets? . Newdex To simply put these are wallets that users have created by themselves Image Source . They do this by using non-custodial wallet services which enables individuals to generate their own random Private keys for users’ personal wallets This is in direct contrast to CEX wallets which were automatically generated for the depositors by CEX operators, but do not share the private keys to the depositors, effectively maintaining control of the issued wallet account. Hence, using a non-custodial is a much safer way of storing digital assets. Best of all . let me show you how to create a non-custodial wallet as well as how to use it to trade in a DEX. you do not usually have to pay anything to create one How to create a free EOS non-custodial wallet/account There are many ways to create EOS accounts but there are very few that allow you to create a free non-custodial wallet. Fortunately one of the wallet partners of Newdex allows you to . The name of the wallet is and you can start the account creation process by going to the as shown by the screenshot below. create one totally for FREE Wombat Newdex website Once you are on the Newdex website click on the “ ” link located at the top right-hand corner of the website. A pop-out window should appear in the site showing the different ways on how to log in using the different partner wallets it supports. You need to . It is the as shown in the screenshot below. Sign-in mouse over the Wombat icon orange icon Move your mouse over its icon to show the download link where you can download the chrome extension and click on it to go to the Chrome extension store. Click on the “ ” button to initiate the installation. Add to Chrome Once the “ ” button is clicked a pop-out window will show reminding you that you installing a Chrome extension. Just click the white button that says “ ” to proceed. Add to Chrome Add extension Clicking the button will initiate the installation. Since the installation file is not that big the download should not take too long. Once installed on the top-right hand corner of the screen. It also shows three ways to connect your Wombat wallet in one of your social accounts. Choose any of the options shown, we prefer using our email hence we use Google. Login to your Google account. it should show the orange icon of Wombat EOS wallet Now that you have logged in your google account and have associated it with Wombat you are . Just click the “ ” button to initiate the process. ready to create your FREE EOS account Create New Account . You can choose any of the two options. In this case, we chose Google Drive. This is an important step as . The next page will ask you where you want to back up your private key you are entirely responsible for your own private keys Once you have chosen which you want to use, it will ask you to log in to that cloud. Since we chose Google Drive it will ask as to login to our Google account as shown in the screenshot below. cloud storage Once you have chosen the account it will ask you for to your Google Drive. . Just click on the white button labeled " " to proceed access permission Wombat will just be given permission to write the private key in your Google Drive and have the necessary access to it if need be Allow Another pop-up window will show reminding you that you might be sharing sensitive information with Wombat. Just click on the “ ” blue button to proceed with the account creation. Allow The next page will ask you to input your for the EOS wallet that you are creating. . There is no way to recover this password so keep it safe. We will be needing this later when we access our non-custodial wallet. password It is of utmost importance that you keep this safe and backed up The next window will ask the . This also . Please be reminded that EOS accounts have naming conventions. It should have an exact length of 12 alphanumeric characters. Click on the “ ” button to proceed. name of your EOS account serves as your wallet address Choose . If you reached the page shown below congrats you have successfully created your account! Wombat will check if the name is available and if it meets the requirements will create the account by allocating the necessary resources To access your account you just need to click on the Wombat Chrome extension . Once clicked should show the wallet. icon on the top right-hand corner That is it you have successfully created your account. The next step is . Let me show you how it is done below. securing your private key Getting your private key As you can see from the screenshot above the wallet has been created and the necessary resource allocation has been allocated by . Wombat totally for FREE While the resources allocated were not much it is enough to create a functioning wallet that we can use in . Newdex by utilizing its resource-free transaction allocations But first we want to get your private key and create another copy aside from the one that you stored in the cloud. You can access it by clicking “ ” menu. Setting Clicking on “ ” will bring you to the setting page where you can find the “ ” sub menu. Enter this menu to get your private key. Settings Private key management To access this page you will be asked for the account password. This was the . Just input the password and click the blue button labeled “ ” to proceed to the next window. password we created earlier Unlock To show the “ ” click on the . This will reveal the hidden private key. Once you have the private key you can use this to if you want. Private Key eye icon recover your FREE EOS account in other wallets Now that you have an EOS account we can log in to Newdex. The following section will show you how to login using the Wombat Chrome extension wallet. How to log in Newdex To log in Newdex all you have to do is to go to its website and click on the “ ” link. Sign in Once you click this, a pop-up window will show you all the possible login options. To log in just click the “ ” white button at the left side of the window. Sign In If the login is successful you should on the website of Newdex as shown in the screenshot below. see your account name If you click on your account name it will bring you to . It shows your resources allocations, EOS balance, and token balances. your wallet page where you can see the various balances of your account Newdex shows the balances of your own private wallet in their site. As we have said earlier . There is no need to deposit and withdraw and the user never loses custody of their digital assets. DEXs like Newdex do not require user accounts but interact directly with your non-custodial wallet . This depends on the of the trader. New users have a level of . Newdex also allows users to have resource-free trades which is equivalent to feeless transactions VIP membership 0 VIP which has 10 resource-free trades daily Free Transactions in Bloks.io Aside from having resource-free trading transactions in Newdex you can also . This site is a multi-purpose site that lets you do a bunch of cool stuff for EOS and its sister chains. . This is a valuable tool especially to those who have a modest amount of EOS staked for resources. avail of the resource-free transfers using Bloks.io Once you connect your wallet into their site you are allowed to have 5 resource-free transactions Final thoughts . The power of always having total control of digital assets is by far the best way of securing them. It is not hard to see the immense flexibility and security of non-custodial wallets give to its users Through this mechanism, . By leveraging decentralized exchanges and non-custodial wallets, they are able to find a , and . digital asset owners can fully attain true ownership of their digital assets safer fairer unstoppable trading venue without any of the many risks associated with centralized exchange trading . Once you have experienced decentralized trading and realize the many benefits it offers you will realize that . Start with as it offers one of the most decentralized, scalable, safe and feature-filled DEXs in the industry today. Do not take my word for it, experience it yourself and decide if what I have said in this article are true in almost all meaningful comparison DEXs is far superior to CEXs Newdex : The above article is a commissioned work for Newdex. I was tasked to write an educational article about decentralized exchanges. Total creative freedom was given to me and all the information here came from my own research and of my own opinion based on my experience and knowledge. It has not been edited by Newdex or any of the aforementioned projects in the article. Transparency Disclosure
