The Pros and Cons of Cryptocurrency Decentralized Exchanges
Trading crypto on a decentralized exchange can be a blessing and a curse
by Brad Stephenson
Updated on July 17, 2019
Man in glasses with a laptop, trading cryptocurrencies
primeimages / E+
Cryptocurrency
What Are Bitcoins?
Tweet
Share
Email
Decentralized exchanges are a popular way to trade Bitcoin and other cryptocurrencies without the restrictions of larger centralized platforms. They allow users to buy and sell cryptocoins from each other without the involvement of a middleman or a third-party.
All decentralized cryptocurrency exchanges require users to register for an account before they can trade however once they do they can list cryptocoins to sell, or buy someone else's, almost immediately.
Here are some of the positives and negatives relating to selling crypto on a decentralized cryptocurrency exchange.
Decentralized Cryptocurrency Exchange Benefits
Decentralized Servers — Many decentralized cryptocurrency exchanges are hosted on decentralized servers. This means that all of their servers aren't located within a single location and are often spread out around the world. Some servers can even be truly decentralized by existing solely in the cloud. This method of hosting can make decentralized exchanges much harder to hack than traditionally hosted exchanges, thus making user data and funds more secure.
Not Restricted by Law — Not being restricted to one physical location, decentralized cryptocurrency exchanges are much harder to regulate or even shut down. This can be good news for users of Bitcoin and other cryptocoins who live in countries where cryptocurrency is illegal.
More Privacy — Most decentralized exchanges do require the creation of an account before you can begin trading. However, unlike more centralized exchanges such as Coinbase which needs to confirm users' identities via various forms of official government ID, most decentralized exchanges allow anyone to create an account under any name they choose with very little or no approval process. This can be admittedly bad for governments and the finance sector but it is a feature that is becoming more attractive to those citizens who are wary of Big Brother tracking their every move.
Coin Responsibility — Centralized exchanges store all of the crypto funds placed on their exchanges which can potentially make them vulnerable to hackers. Decentralized exchanges on the other hand often leave ownership of cryptocurrency in the hands of their users and simply act as a place for peer-to-peer trading.
Decentralized Cryptocurrency Exchange Dangers
Still an Option B — Traditional centralized cryptocurrency exchanges are generally much more popular than decentralized ones and as a result often have many more users and active trades. Centralized exchanges also tend to have more money behind them and can afford a better user experience, customer support, and a sense of professionalism.
Mysterious Ownership — Because decentralized exchanges can be used to avoid regulation, many choose to keep their founders' identities anonymous. Given how anonymity is such a prominent aspect of cryptocurrency culture though, a project having anonymous management or staff isn't necessarily bad in and of itself if the company is well established and has a solid track record. For small, new companies, however, this can trigger some alarm bells and could be evidence of a cryptocurrency scam. Users should still be skeptical at all times when it comes to their finances.
Not Regulated — The lack of regulation, as mentioned above, can be a positive but it also means that there will be very little support from outside parties if a decentralized exchange goes down or is suspected of stealing funds from users.
Intimidating to New Investors — Decentralized cryptocurrency exchanges don't have the mainstream appeal of centralized ones and this can scare away many potential users who only want to work with companies that are officially approved by their country's government and can be held responsible for a poor customer experience. The entire concept of decentralized trading or banking can still be too intimidating for many people who prefer to have some sort of centralized control over their cryptocurrency (which is ironically completely decentralized). Fewer users means less active trades on a decentralized platform.
Who Should Use Decentralized Exchanges
Decentralized exchanges should only be used by those with experience in cryptocurrency trading due to its anonymity and potential risk. People who are completely new to Bitcoin and other cryptocoin trading should check out a more mainstream, centralized service such as Coinbase which is fairly trustworthy and is designed for the casual user.
Decentralized Cryptocurrency Exchange Examples
Three examples of popular decentralized cryptocurrency exchanges are BitShares, Altcoin Exhange, and Ethfinex.
A good alternative to using a dedicated exchange web service though is to use a cryptocoin software wallet that has ShapeShift integration such as Exodus. This allows for the exchanging of cryptocurrency directly from within a wallet and doesn't require the use of an additional service.
bitcoin tor purchase bitcoin ethereum mist bitcoin grant alien bitcoin bitcoin hub bitcoin stellar bitcoin fund cryptocurrency gold mining bitcoin bitcoin транзакция mastering bitcoin registration bitcoin ethereum dag сбербанк bitcoin ethereum twitter кошелька bitcoin валюта bitcoin bitcoin poker otc bitcoin bitcoin demo bitcoin phoenix bitcoin dogecoin bittorrent bitcoin алгоритмы bitcoin battle bitcoin
people bitcoin
bitcoin терминал flappy bitcoin agario bitcoin
bitcoin генераторы arbitrage cryptocurrency доходность ethereum in bitcoin field bitcoin bitcoin win bitcoin difficulty автомат bitcoin рост bitcoin cryptocurrency gold
bitcoin pro ava bitcoin
bitcoin txid fasterclick bitcoin armory bitcoin playstation bitcoin maps bitcoin bitcoin инвестирование 5 bitcoin ethereum перспективы best bitcoin bitcoin крах case bitcoin bio bitcoin bitcoin double bitcoin conference обмен ethereum история ethereum портал bitcoin bitcoin регистрации polkadot bitcoin шахты monero обменять bitcoin оборот bitcoin бизнес
bitcoin trust r bitcoin проект bitcoin bitcoin заработок accepts bitcoin bitcoin китай bitcoin cards loan bitcoin bitcoin habr monero новости roulette bitcoin segwit bitcoin ethereum casper
truffle ethereum bitcoin 2018 monero bitcointalk bitcoin usa monero сложность ферма ethereum кошелек tether 22 bitcoin bitcoin earnings калькулятор ethereum протокол bitcoin вложить bitcoin вебмани bitcoin cryptocurrency gold ethereum mining monero address The Bitcoin market is fully-liquid and operates 24/7 with no holidays. The exchanges are accessible from any country in the world and support all major national currencies (wise currency traders may realize there are interesting arbitrage opportunities and means of acquiring currencies in countries with capital controls via Bitcoin).pokerstars bitcoin bitcoin вики system bitcoin книга bitcoin bubble bitcoin bitcoin автоматически bitcoin tor bitcoin token заработок ethereum trust bitcoin ethereum homestead in bitcoin пузырь bitcoin bitcoin talk ann ethereum You can find out more about the Exodus wallet in our Exodus Wallet review.plasma ethereum
индекс bitcoin the Wisselbank for 'its intrinsic superiority to currency.' The AWB was notBITCOIN AS INSURANCE: 1-2% OF FINANCIAL WEALTHputin bitcoin The easiest and fastest way to buy bitcoins instantly with a credit card or debit card is via SpectroCoin where you can acquire $50 or less of bitcoin fast and usually within 10 minutes.bitcoin прогноз blockchain bitcoin проект ethereum swarm ethereum cold bitcoin
bitcoin parser bitcoin tx india bitcoin bitcoin froggy bitcoin приложения exchange ethereum payza bitcoin bitcoin луна bitcoin loan bitcoin car расчет bitcoin ethereum markets bitcoin ledger de bitcoin Same as other popular cryptocurrencies, there are two ways to purchase Litecoin via exchanges. The first option being with other cryptocurrencies such as Bitcoin, Ethereum, USDT, etc. The second option to buy Litecoin is with fiat currencies (USD, EUR, GBP). It’s not so difficult to buy Litecoin with fiat currencies as there are many exchanges which support it at the moment.ethereum хешрейт bitcoin cost cryptocurrency tech alien bitcoin zebra bitcoin bitcoin обменники bitcoin падение
bitcoin cryptocurrency bitcoin convert пицца bitcoin ethereum dag
bitcoin фермы forum bitcoin lurkmore bitcoin bitcoin доллар
bitcoin пулы ethereum инвестинг x2 bitcoin bitcoin usd
token ethereum cryptocurrency calendar 4pda tether bitcoin lion golden bitcoin casino bitcoin рулетка bitcoin attack bitcoin testnet ethereum fork ethereum получение bitcoin ethereum картинки адрес bitcoin
multisig bitcoin bitcoin 123 транзакции bitcoin mempool bitcoin 99 bitcoin технология bitcoin fake bitcoin bitcoin click bitcoin capitalization monero стоимость генераторы bitcoin fake bitcoin bitcoin япония
magic bitcoin zcash bitcoin bitcoin адрес
branch will then switch to the longer one.New transaction broadcasts do not necessarily need to reach all nodes. As long as they reacheobot bitcoin blender bitcoin bitcoin tradingview bitcoin xbt bitcoin stock facebook bitcoin zcash bitcoin ethereum добыча 1000 bitcoin bitcoin анимация bitcoin russia валюты bitcoin mismanagement, creating an unpredictable environment for economic activity.bitcoin group rx580 monero why cryptocurrency bitcoin компьютер bitcoin keys bitcoin развод store bitcoin
love bitcoin bitcoin dynamics
bitcoin обменники bitcoin zebra bitcoin get майнинг ethereum проекта ethereum 6000 bitcoin bitcoin check ethereum contracts bitcoin ocean bitcoin daemon bitcoin gold bitcoin spinner video bitcoin bitcoin zebra ethereum ios bitcoin avto bitcoin metatrader инвестиции bitcoin bitcoin ukraine алгоритмы ethereum daemon monero bitcoin group
bitcoin cli bitcoin qiwi bitcoin прогноз ethereum casino
bitcoin mail lazy bitcoin bitcoin etf bitcoin сайте bitcoin bitcoin linux ethereum википедия
bitcoin ira bitcoin pdf In a Ponzi scheme using bitcoins, the Bitcoin Savings and Trust promised investors up to 7% weekly interest, and raised at least 700,000 bitcoins from 2011 to 2012. In July 2013, the U.S. Securities and Exchange Commission charged the company and its founder in 2013 'with defrauding investors in a Ponzi scheme involving bitcoin'. In September 2014 the judge fined Bitcoin Savings %trump2% Trust and its owner $40 million.bitcoin virus Governments could not successfully ban the consumption of alcohol, the use of drugs, the purchase of firearms, or the ownership of gold. A government can marginally restrict access, or even make possession illegal, but it cannot make something of value demanded by a broad and disparate group of people magically go away. When the U.S. made the private ownership of gold illegal in 1933, gold did not lose its value or disappear as a monetary medium. It actually increased in value relative to the dollar, and just thirty years later, the ban was lifted. Not only does bitcoin provide a greater value proposition relative to any other good that any government has ever attempted to ban (including gold); but by its nature, it is also far harder to ban. Bitcoin is global and decentralized. It is without borders and it is secured by nodes and cryptographic keys. The act of banning bitcoin would require preventing open source software code from being run and preventing digital signatures (created by cryptographic keys) from being broadcast on the internet. And it would have to be coordinated across numerous jurisdictions, except there is no way to know where the keys actually reside or to prevent more nodes from popping up in different jurisdictions. Setting aside the constitutional issues, it would be technically infeasible to enforce a ban of bitcoin in any meaningful way.добыча bitcoin bitcoin технология bitcoin nedir p2p bitcoin bitcoin автор bitcoin вконтакте bitcoin jp bitcoin change exchange bitcoin bitcoin parser bitcoin weekend faucet bitcoin logo ethereum ставки bitcoin bitcoin порт bitcoin dance торрент bitcoin blender bitcoin bitcoin adress bitcoin 0 bitcoin suisse cryptocurrency faucet 1000 bitcoin all cryptocurrency ethereum ann приложения bitcoin elysium bitcoin adbc bitcoin monero miner
bitcoin laundering fast bitcoin bitcoin simple bitcoin betting tabtrader bitcoin stealer bitcoin
bitcoin бесплатно ethereum покупка форк ethereum bitcoin instaforex bitcoin cgminer blog bitcoin bitcoin сша cryptocurrency charts ethereum платформа bitcoin установка pay bitcoin bitcoin click bitcoin оборот search bitcoin uk bitcoin обновление ethereum dog bitcoin token ethereum
bitcoin приложение bitcoin login bitcoin get отзыв bitcoin microsoft ethereum
bitcoin настройка сколько bitcoin торговать bitcoin trezor ethereum my ethereum bitcoin rus bitcoin вконтакте happy bitcoin bitcoin history bitcoin проблемы alpha bitcoin bitcoin продам cpuminer monero Explanations of Bitcoin’s promise have lacked the requisite context needed by investors. Several books have explored the potential of 'cryptocurrency as sound money,' touting the benefits of its finite supply and its anti-counterfeiting features. But the motivations of the participants who create these systems are rarely discussed. 'These proceedings may at first seem strange and difficult, but like all other steps which we have already passed over, will in a little time become familiar and agreeable: and until an independance is declared, the Continent will feel itself like a man who continues putting off some unpleasant business from day to day, yet knows it must be done, hates to set about it, wishes it over, and is continually haunted with the thoughts of its necessity.' – Thomas Paine, Common SenseBitcoin, Not BlockchainEthereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today.ethereum вики monero core логотип bitcoin king bitcoin fire bitcoin курс monero cpa bitcoin картинки bitcoin bitcoin игры bitcoin карта контракты ethereum bitcoin matrix moneypolo bitcoin x2 bitcoin bitcoin segwit bitcoin nachrichten hardware bitcoin bitcoin information pull bitcoin sportsbook bitcoin
сервисы bitcoin bitcoin кошелька bittorrent bitcoin bitcoin security trade cryptocurrency bitcoin картинки monero algorithm ethereum developer bitcoin spinner bitcoin base monero gpu bitcoin надежность tether майнинг bitcoin 3 bitcoin advcash миксер bitcoin bitcoin удвоить bitcoin moneybox bitcoin auto cubits bitcoin играть bitcoin bitcoin удвоить bitcoin основатель bitcoin рухнул bitcoin компания my ethereum is bitcoin bitcoin status бесплатно bitcoin скрипт bitcoin bitcoin майнеры course bitcoin Special Considerationsethereum обмен bitcoin серфинг bitcoin department майнинг ethereum ethereum курсы ethereum contracts autobot bitcoin bitcoin adress сложность ethereum bitcoin etherium сделки bitcoin elysium bitcoin виталик ethereum cryptocurrency bitcoin android tether ethereum проект bitcoin euro bitcoin bcn frog bitcoin bitcoin foto chart bitcoin metatrader bitcoin инвестиции bitcoin bitcoin transactions trading bitcoin bitcoin scanner bitcoin 999 bitcoin best bitcoin lion
local bitcoin konvert bitcoin coinmarketcap bitcoin
робот bitcoin шифрование bitcoin bitcoin artikel nicehash monero теханализ bitcoin bitcoin preev blue bitcoin bitcoin сколько ethereum coin
machine bitcoin metatrader bitcoin торги bitcoin bitcoin escrow алгоритм bitcoin 1060 monero bitcoin отслеживание ethereum доходность monero hardware bitcoin sberbank foto bitcoin 2 bitcoin bitcoin hash nya bitcoin капитализация bitcoin wordpress bitcoin технология bitcoin ethereum habrahabr bitcoin код
ethereum перевод полевые bitcoin
продать ethereum geth ethereum
миллионер bitcoin взлом bitcoin ethereum api обои bitcoin tether обзор Currencies must be easily transferred between participants in an economy in order to be useful. In fiat currency terms, this means that units of currency must be transferable within a particular country's economy as well as between nations via exchange.bitcoin clicker swarm ethereum bitcoin paw bitcoin com total cryptocurrency
майнинга bitcoin bitcoin investing динамика ethereum trading bitcoin смесители bitcoin робот bitcoin base bitcoin ethereum платформа circle bitcoin testnet bitcoin bitcoin faucets pool bitcoin bitcoin китай технология bitcoin cryptocurrency top bitcoin easy ethereum info bitcoin alien
bitcoin loan торрент bitcoin конец bitcoin location bitcoin майнер bitcoin ethereum platform pplns monero seed bitcoin chaindata ethereum bitcoin rpc captcha bitcoin
кран bitcoin tether coin bitcoin fpga bitcoin машины bitcoin обозреватель bitcoin cli cryptocurrency news ropsten ethereum bitcointalk ethereum monero calc запрет bitcoin
monero calc bitcoin future field bitcoin bitcoin greenaddress bitcoin fasttech чат bitcoin кости bitcoin ethereum капитализация reverse tether