Entering the World of DEX Decentralized Exchanges

Patrick Moynihan
Nov 10 · 9 min read
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Click here for the Vite Multi-Chain Wallet Overview or scroll down to the bottom of the article.

Introduction

DEX exchanges are simply not intuitive to learn due to the software code structure living on digital networks secured by nodes — literally on chain. New DEXs will certainly enhance user experience over time. Yet, I’m not certain they need to “go back in time” to cater to old experiences. Working within a DEX becomes extremely logical with experience.

Since DEXs are hard-coded within digital networks, they do not provide fiat to crypto rails to fund your journey. It’s BYOC — bring your own crypto. Typically, a user will need to fund their DEX account with BTC or ETH. Here is your first hurdle if you are new to crypto assets…

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Vite Wallet Assets Page

Starting Point

Once you have your BTC or ETH, you can now transfer it to a DEX to fund purchases in the deep dark world of alternative crypto assets (alts). For clarity, this snippet is not meant to be exhaustive or conclusive regarding using DEX exchanges or buying alts. This should NOT be considered investment advice or a solicitation of any kind.

Over the last five years I have read approximately 500+ white papers. These are thesis papers on various cryptographic (or other space math tech) protocols on how they maintain an electronic ledger, which in turn eliminates the need for a central authority to trade and transact financially with other users. The building block for all crypto newcomers should be the bitcoin white paper. To date, broad crypto use cases outside of store of value and speculation have been slow to materialize. But they are on the horizon. One wonders, does the use case kill the speculative case or does the speculative case kill the use case? We may not know for several years. I would suggest the speculative case is diminished over time simply because crypto has entered the mainstream.

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Note: thinly traded assets like EPIC often defy chart analysis techniques — careful with those Ichimoku clouds!

Epic Cash — My foray into the DEX world

So with all of that, I went and downloaded a DEX wallet from the app store (Overview details below). Step 1 is WRITING DOWN/ SECURING the mnemonic seed phrase to recover your account in the event your password or device is lost. (Some power crypto folks have this seed phrase engraved on metal, safe from fire and EMPs and hard to lose.) Remember, crypto assets in DEXs live on chain on a digital network secured by computer hash power. It does not sit in a database and there is nobody to call for help. A DEX is not a thing, it’s a software action with hardcode living inside digital networks. Users who lose password or device can reclaim their accounts and assets by entering the mnemonic seed phrase in correct order. BOOM — Mortimer, we’re back!

Navigation

Patience

Tripping Points

On Chain

Alt Pairs & Bitcoin

Trade data can also be delayed or inaccurate if using larger technical charting services. Rely on DEX data when in doubt. It’s hard-coded. Wash trading (fake volume) is possible on DEXs, but seems unlikely given DEX fees with real assets loaded on the platform to trade. DEXs by design do not engage with any 3rd party market makers or custody providers. It’s truly decentralized user to user exchange of assets. Some don’t want to risk losing BTC for alts and that’s understandable. BTC (and ETH) is the financial battery you hold and monetize. It’s simply not efficient for large numbers of transactions, particularly as the price and related fees go higher. However, since alts are paired against BTC, as the alt price increases, so does your bitcoin bag! That’s the wonderful “aha” moment when successfully investing in alts.

Conclusion

The word that comes to my mind to describe this DEX is… “SLICK!”

Vite Multi-Chain Wallet | Overview

1. Download the wallet

b. Android: https://play.google.com/store/apps/details?id=net.vite.wallet

c. Desktop: https://github.com/vitelabs/vite-wallet/releases

2. Install and create an account.

3. *WRITE DOWN/ SECURE* the mnemonic recovery seed phrase words in the correct order from left to right, then top to bottom.

4. Add EPIC and BTC to your wallet

b. Click the + icon at the upper right

c. On the “BTC-000” row, click the toggle until it is on/blue

d. Search for “EPIC-001”, and click the toggle until it is on/blue. Avoid adding EPIC-000.

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Search for “EPIC-001” and enable it using the toggle

5. Return to the “Wallet” tab. Select BTC-000 and click “Cross chain deposit ” (white box) to view your BTC wallet deposit address.

6. The “Asset“ tab is your friend!

b. “BTC” or “EPIC-001”

c. “Transfer” lower tab

d. “All” to populate

e. Check “toggle” for destination (wallet or exchange)

7. Trading

b. Use magnifying glass icon at upper right to search for: “epic”

c. Select EPIC/BTC (and optionally click the star icon at upper right to add to favorites)

d. Click “Buy” or “Sell” to enter the trade book

Note: clicking “Buy” or “Sell” from the “Markets” tab is the only way to enter the trade book

8. Go to the “Asset” tab to move assets from the exchange back to the wallet. See step 5 above.

This article and guide is NOT investment advice, legal advice, tax advice, or a solicitation of any kind.

Patrick Moynihan is the Founder of Rubicon Capital Funds, LLC. Rubicon is a Wyoming “series” fund of funds offering ala carte manager selection for accredited investors seeking allocation to leading alternative and digital asset strategies. Rubicon offers liquid/HFT, structured income, and venture fund strategies. The views and material in this article are Patrick’s alone and do not reflect his financial management funds in any capacity.

Epic Cash

Epic Cash is designed to be a currency for everyone, and…

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