As you heard of cryptocurrencies, the most likely experience is of a Centralized Exchange to help you in your cryptocurrency trading.
Centralized Exchanges are more popular, but the point to note is that cryptocurrencies are fundamentally decentralized. Therefore if anything needs to match up the decentralized nature, it is of the Exchange that traders and investors are active in.
Centralized Exchanges are volatile in nature and prone to hacks. This is because storage of Bitcoins and other cryptocurrencies is made possible and hence can be stolen away in a matter of seconds. There are also the given rules by governments of regulating cryptocurrency, and with China already becoming strict many centralized exchanges are being shut down.
Before decentralized exchanges(DEX) become the only option, it is important to understand the importance and which decentralized exchanges will help you navigate to a brighter cryptocurrency trading future.
Decentralized Exchanges let you trade one on one with buyers and sellers. This way you will be more in control of the trade, than letting the exchange make the moves for you.
But before we move forward, let me through some light on what Decentralized Exchange actually are.
What is a Decentralized Exchange(DEX)?
A decentralized exchange is a trading platform which is not controlled by a single company and allow its users to control the funds.
Some features of Decentralized Exchanges are:
- These exchanges are not owned by a single or a group of companies.
- These exchanges let users control their digital assets.
- These exchanges cannot be shut down by any government.
- These exchanges keep user security as the priority and do not ask for KYC/ID verifications.
- These exchanges do not have any third party setups.
Because of all the above-mentioned features, the decentralized exchange has become the need of the hour.
So without any further ado, let me share some of the Best Decentralized Exchanges that you can use to trade cryptocurrencies.
7 Best Decentralized Exchange
Bitshares is a high-performance decentralized exchange which is capable of handling volumes similar to the popular stock exchange NASDAQ.
Speed is the name of the game in cryptocurrency, and in Bitshares orders are settled in mere seconds. The traders are also in the degree of the same level as there is no scope for high-frequency trading or hidden orders.
Equal opportunity is maintained, with a 100% reserve system that backs up the security. This is one of the most popular decentralized exchange with around 2,400 BTC being in trading volumes.
Getting started with Bitshare is quite easy as it does not require any verification. However, you need to take care of the password which would look something like: P9FUxwtsLUi975eja7KABjF1KQyfQCWBcJO29PVPrgWwdr
OpenLedger was founded in 2015 and is a company based out of Denmark. It is the ideal exchange platform for beginners as well as experts. It is built on the Bitshares Platform which provides freedom along with the stability of the dollar.
OCASH which is the first all in one crypto ready debit card is tied up with the OpenLedger network. 2018 is promised to be exciting for Openledger as there are projects which will be rolled out over the next 6 months.
The volume of trading is at 320 BTC currently with 125 cryptocurrencies currently listed.
One thing that I really liked about OpenLedger is that it offers two different accounts:
- Wallet model
- Account model
Both the accounts have different security and login process.
|Wallet Model||Account Model|
|Multiple accounts||Single account|
|Wallet file backup required to login||Easy login|
|High security||Moderate security|
Similar to Bitshare, getting started with OpenLedger takes not more than a minute. You just need to set your unique username and confirm the password.
Make sure to store the username and password safely because this is the only thing that can give you access to your account.
This is a product based on the Waves cryptocurrency and blockchain. It is for the users who want a feel of advantages of a centralized exchange and decentralized exchange at the same time. WavesDex is a semi-decentralized platform.
The funds are more controlled by using a centralized process, while trading of cryptocurrencies can be done in exchange for Waves cryptocurrency. It can be used by installing the Lite Wallet or Chrome extension in your browser.
Currently, there are 72 cryptocurrencies listed on WavesDex with a volume of trading at 172 BTC.
I really liked the UI of waves dex as it was very easy to use and simple. But make sure to download the backup file and store it safely as it is the only thing that can help you restore your account in case you forget the password.
It was previously called Bitsquare, which changed its name due to copyright issues. It is an open source platform organized as a Decentralized Autonomous Organization, which can be used in less than 10 minutes.
It has all the characteristics to keep the decentralized culture of cryptocurrency alive. It is easy to use, secure and is a system of peer to peer exchange.
Decentralization is king on this platform, with no cryptocurrencies or fiat being held on their servers. It is a beyond anonymous with a complete privacy to the user, just as the main reason for cryptocurrency to exist.
With 126 cryptocurrencies supported on this platform, it is proving to be a major contributor to the decentralized space. Currently, there is only 4 BTC, with a whole load of gain thanks to the number of cryptocurrencies listed.
You will be surprised to know that you can not use bisq exchange through a website, instead, you need to download their application on your computer. This makes bisq extremely safe from any hack or theft.
Cryptobridge supports the decentralized exchange of popular altcoins. With the transparency of withdrawals, deposits, and trading it allows the client to take full control of the coins they own. Thus there is no single point of failure.
CryptoBridge has no control and access to the client’s funds. Even though it is new in the field of decentralized exchanges, it can process upto 100,000 transactions per second and has average confirmation time of just 3 seconds.
Do keep your eye on the native BCO token called BridgeCoin as it allows 50% revenue sharing with the BCO HODLers.
It has gained attention already with 32 BTC in trading volumes and 21 cryptocurrencies listed on it.
Similar to bitshare, you can simply create an account just by entering a username and you will automatically get a password. Actually, crypto-bridge is built upon bitshare network itself.
The password will look something like- P5JLrRSysD7WyqHTLY24MkoFZ8FLwUDBkYSU7ldHRyn
Stellar is a popular cryptocurrency and a blockchain project that introduced a decentralized exchange.
To get started on using the Stellar network, you must first create a key pair. The key pair consists of two parts:
- Public key: The public key is used to identify the account. It is also known as an account. This public key is used for receiving funds.
- Secret key: The secret key is used to access your account and make transactions. Keep this code safe and secure. Anyone with this key will be able to access your funds on the Stellar Dex.
At the time of login, you just need to enter the Secret key and deposit 20 lumens(XML) in order to start trading.
The decentralization exchange called Idex takes Ethereum coin (ETH) & ERC-20 token in play. It is user-friendly and supports quick exchanges similar to centralized exchanges.
It does not deduct fees when canceling orders (gas costs), and even allows multiple orders to be filled at once. This is an exchange for the serious pro-Ethereum traders who want security to be maintained with quick trading speeds.
It currently trades on around 55 BTC in volume and offers to trade in over 200 cryptocurrencies.
Future of Decentralized Exchanges
The future of Decentralized Exchanges looks bright with exchanges such as NVO releasing in the first quarter of 2018. NVO is an ecosystem built around an exchange and wallet to allow for secure direct peer to peer exchanging of cryptocurrencies.
It will be easier to use and is more of a day to day trading platform. It will utilize a multicurrency wallet, which will store keys on user devices.
With financial derivatives being a major discussion in terms of cryptocurrency, Dydx is the best decentralized platform in this regard. It is built on the Ethereum blockchain powered by smart contracts and enables peer to peer short sells and options.
It makes use of off chain order books with on chain settlement to enable efficient markets. Coinbase CEO Brian Armstrong backs DedX and thus is a sign of potential.
User trust is an increasing issue with centralized exchanges and hence users are now tempted to shift and gain advantages from the alternate universe of decentralized exchanges.
It is quick and easy to join any of the decentralized exchanges above by a simple click of a button to create the account without the hassle of entering personal information.
Be the leader in your friend circle and break into the decentralized system once and for all. Believe us, you will not regret it!
So this is it on my end, now it’s your turn to comment below and tell which exchange do you use for regular trading.
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