Decentralized exchange

You probably know classic exchanges like Bittrex, Kraken or Poloniex. These exchanges are based on trust between you and exchange (third party), because you have to send your assets to address, which is under control by an exchange. Usually centralized exchanges are the main target for hackers. So, there’s plenty of space to fraud actions and the potential loss of your money. Thanks to the blockchain technology there is a new option, how you can safely exchange your assets – a Decentralized exchange.

exchange, decentralized exchange, kraken, ploniex, bittrex
exchange, decentralized exchange, kraken, ploniex, bittrex

What is a Decentralized exchange and how it works?

A decentralized exchange allows, that you can exchange your assets without any trust in the third party. What does it exactly mean? Simply said, You can trade directly from your address without any transfers to exchange’s address, which isn’t under your control. Your funds are secured by smart contract, which has strict rules and no one can change it.  This solution allows that you can trade your Coins or Tokens directly on the market without any third party. Decentralized exchanges are the best way, how we can build robust defend the system against hackers attacks. The only problem is, that on a decentralized model you can do only exchanges of currencies or tokens. Margin trading and stop-loss are not supported there.

But in conclusion, Decentralized exchanges is the huge step forward due to higher safety in trading. Hacker attacks are the real danger for an entire crypto community. Centralized exchanges manage a huge amount of money and this is an ideal target for hackers. There are a lot of cases with successful attacks on centralized exchanges like Youbit or Bitfinex. Most famous fraud was Mt Gox case, which is damaged and slowed down the entire industry of cryptocurrencies for a long time,

List of Decentralized exchanges

Openledger.io – based on Bitshares platform

EtherDelta.com – based on Ethereum platform with focus on trading ETH DApps

Bancor network – based on Ethereum platform with focus on trading ETH DApps

Waves – based on Waves platform