The cost and benefits of using a DEX for NFT trading and transactions

• Decentralized Exchange (DEX) platforms are a type of cryptocurrency exchange that functions on different blockchains.
• Unlike centralized exchanges, where users entrust a single entity to manage as well as hold their assets, DEXs allow peer-to-peer transactions to take place directly between users, thereby eliminating the need for a third-party intermediary.

This is capable of offering users greater control over their funds and more security against potential thefts. DEXs also offer more privacy, as transactions are not recorded on a centralized database. As such, DEXs are becoming increasingly popular for NFT trading and transactions.

Smart contracts are a few key features of decentralized exchanges (DEXs) platforms. They are self-executing programs that allow transactions to take place between users without the need for a central authority. When two parties decide to make a trade, the DEX platform is capable of utilizing the smart contract to automatically execute the terms of the contract. This automation eliminates the need for a third-party to process the transaction, thus, streamlining the trading process.

This article will help you understand the various benefits of using a DEX for NFT trading and transactions, as well as the cost of a decentralized exchange app development. So let us move ahead and look at the various aspects in detail below.

Cost of creating a DEX platform for NFT trading and transaction

To give you a rough idea, the cost of creating a DEX platform varies between $40,000 to $300,000. There are various factors that further affect the overall cost of development, such as the location of the dApp blockchain application development company, the UI/UX design of the app, the development process, smart contract development, etc.

Let us move ahead and look at the factors in detail below:

Location of the app development agency

The location of the DEX app development company also affects the overall cost of development. For instance, the hourly rate of development in regions like Asia or Africa is comparatively less compared to the hourly rate of development in the UK or the USA. Here is the estimated hourly development rate as per various parts of the world.

The UI/UX design of the app

A well-defined UI/UX design makes way for the app’s overall success in the competitive ecosystem. The app should offer its users a seamless interface that is easy to use while promoting engagement and retention. Now, to ensure that the design is as per the client’s custom requirements, it has to go through multiple testing techniques, which adds to the overall cost of developing a DEX platform.

Team size

The team size of the hired app development team also directly impacts the cost of development. For instance, you can either choose between hiring a freelancer for your project or hiring an in-house team. On the other hand, you can simply outsource your project to a dedicated organization that has years of experience in DEX development.

Hiring freelancers can ultimately reduce your cost of development, but they cannot guarantee expertise and professionalism. On the other hand, hiring an in-house team can increase your overall budget, while it will be difficult to manage the hiring process, interviews, etc.

If you wish to outsource your project to a DEX development company, they can help you leverage their expertise at an optimized cost.

Here is the hired team size required for a robust DEX app development:

• 1-2 project managers
• 1-2 business analysts
• 2-3 frontend developers
• 2-3 backend developers
• 1-2 designers
• 1-2 quality assurance analyst

Features of the DEX platform

One of the most notable factors that affect the overall cost of developing the DEX is the features to be integrated into the app. Simply put, more are the features of the app, more are related costs, and vice versa. It is important to understand that a well-defined feature set is capable of allowing the app to gain traction in the marketplace while making way for the app’s success.

Maintenance

Maintaining a DEX platform is somewhat different than other apps. With the DEXs, you cannot update the app simply. Now, in order to maintain traction in the market, you can release a new version that works in parallel to the previous releases.

Now that we have looked into various factors that affect the cost of developing the DEX platform let us move ahead and look at the various benefits of the same.

Benefits of creating a DEX platform for NFT transactions and trading

Increased security

One of the most significant benefits of decentralized exchanges (DEXs) is their enhanced security when compared to other centralized exchanges. They allow users to have full control over their assets. Thus, there is no single point of failure that can be targeted by malicious attackers. This reduces the chances of funds being stolen or lost during a security breach, making DEXs more secure than their centralized counterparts.

More privacy

Decentralized Exchanges (DEXs) provide users with a higher level of privacy compared to centralized exchanges. This is because the users are able to trade directly with each other. Thus, there is no need to share personal information with a central authority. This eliminates the chances for personal data to be exposed or otherwise compromised, providing users with greater peace of mind.

Decentralization

The decentralized nature of DEXs means that there is no single point of control, which is beneficial in terms of risk mitigation. This lack of a centralized authority reduces the risk of being associated with censorship or interference from any central governing body, allowing for greater autonomy and freedom for users. This feature is beneficial for those who value privacy and autonomy, as well as those who wish to avoid potential manipulation of the markets.

Reduced fees

Decentralized exchanges (DEXs) are known to charge lower fees than centralized exchanges. This is due to the lack of intermediaries in the transaction process, resulting in lower costs for users. These cost savings are reflected in the lower fees charged by DEXs.

Decentralized exchanges are an excellent resource for cryptocurrency users to maintain their financial autonomy. By providing access to services without any bias or prejudice, they uphold the original ethos of Bitcoin, the pioneering cryptocurrency. Decentralized exchanges are a powerful tool that allows users to take control of their finances and maintain their financial sovereignty.