Cryptocurrency is all over the globe now and eventually becoming the first thing to investment choice into, giving good profit returns. As the cryptocurrencies gradually increasing pulling the major centralized exchanged with it.
At some point working in cryptocurrency, we use these centralize exchanges to convert our bitcoins or altcoin to other altcoins etc.
But are these Centralised Exchanges worth Trustworthy?, Are you scared that they will hack your wallet with funds and will run away?
What is Decentralized Exchange?
With the growing demand and the risk hacking and frauding, some exchanged know as Decentralized Exchanges, which partially owned by the 3rd party and provides you with your private keys so you can recover your funds to any other wallet even if exchange ever gets hacked or shuts down. Keeping the risk or vulnerability very low and keep your wallet secure.
I have to remind that major exchanges don’t give you your wallet’s private keys, mean they have full control over your funds.
The worst part of this so-called crypto is that you don’t know if the team behind is trustworthy or gonna run away with your fund. This happened many time, some of these exchanges shut down its website calling it’s been hacked but in reality, the actual team behind it ran away, stealing more than million dollar worth of cryptocurrencies.
Keeping your funds and exchanging them in good trusted and reliable exchanges should be mind while working in cryptocurrency sphere. Make sure the wallet you storing your crypto provides you with private keys.
These exchanges held by the centralized companies and breaking the fundamental characteristics of cryptocurrency which meant to be fully crypto and decentralized.
The growing demand for the crypto exchange and volatility raising the fact of frauds and other and hence as of consequence we can see the most of famous exchanging asking for the KYC to verify your identity before you trade. This slows down the process of the exchanging and transferring, acting as a barrier. Well, many peoples are supporting this as a matter of more security but others are resisting towards it.
What’s the Solution?
By using decentralized Exchanges. These decentralized exchanges are not held by particular team or firm but by a group of many trusted firms and many peoples.
Some of the Decentralized Exchanges listed below.
Waves provide you with the client on which you can easily convert your cryptocurrency and trade too. The waves exchange is decentralized exchange powered by its own cryptocurrency named as waves, including listed of many other major cryptocurrencies too.
Waves is the considered to be decentralized because it provides you with the backup private keys, but well its is control by a matching service.
Some of the key feature of Waves Platform
- Cryptocurrency exchange provides you with your backup/private keys.
- You can use it to store you cryptocurrencies too.
- Provides you with token launcher so you can launch your own token coins.
Know more about Waves platform
Openledger is another solution for the decentralized cryptocurrency exchange based in the country Denmark providing exchange all over the globe.
opening account in the openledger is much easier and doesn’t require any KYC at all. The only thing that you need to take care is your login password and username because that is the only thing which can help you in case something goes wrong.
Some other Decentralized Cryptocurrency Exchanges
- CryptoBridge Dex
- Stellar Exchange
- Bancor liquidity exchange
- Counterparty Exchange
Demerits of these Decentralized Exchanges
- Volume or other cryptocurrency is low.
- Not supports many cryptocurrencies.
- Exchange Rates may be off-scale.
- Make it hard to trace funds and hence voids the taxes upon it.
Quotes from investopedia.com
Issues With Decentralized Exchanges
On the other hand, there are some potential problems with decentralized exchanges. John McAfee, the technology security expert, recently wrote an article suggesting that decentralized exchanges could be a problem for government regulatory agencies, as these exchanges make it more difficult to trace funds for the purpose of taxation. Perhaps this is part of the reason why governments like China and South Korea have recently made moves to regulate cryptocurrency exchanges. (See more: China’s ‘Zero Tolerance’ Policy on Cryptocurrency Crimes.)
Further Reading at techllog
- Top 6 Best Ethereum Wallet For 2018
- How To Secure Your Cryptocurrencies From Getting Hack
- Whats Different Between Private and Public Blockchain?