The Switcheo decentralized exchange has announced its new Switcheo Account function, allowing traders to access the exchange using a familiar username and password login system. Switcheo Accounts will be able to trade on all chains without requiring individual wallets.
Unlike centralized exchanges, Switcheo Accounts do not require users to store their details on Switcheo’s servers where they could be accessed or compromised.
According to Switcheo: “When users create a new Switcheo Account, they actually create a multi-chain wallet using mnemonic phrases, which is then encrypted using state-of-the-art technology and procedures.”
This approach allows the account system to remain non-custodial, with only the trader having access to their funds. Switcheo Account will also feature two-factor authentication, providing an additional layer of security.
Users will be able to recover their account or funds using a backup phrase, which mitigates the risk of funds being lost in the event that the Switcheo Exchange ceases to exist.
The exchange hopes that the new account system will improve onboarding for traders that are more accustomed to trading on centralized exchanges, as users will not need to personally manage the transfer of funds between wallet and contract balances. This functionality will be automated by the web application itself.
Switcheo CEO Ivan Poon summarizes: “Users may have coins on other platforms that they wish to trade on Switcheo Exchange. Onboarding can then become a hassle when it involves the creation of a third-party wallet for just a few quick trades. With Switcheo Account, trading on a DEX will be as simple as it is on a centralized exchange, while still ensuring that you have full custody of your funds.”