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.
magic bitcoin
monero rur
bitcoin course bitcoin 100 ico monero ethereum android usdt tether
bitcoin youtube bitcoin fox tether js аккаунт bitcoin ethereum телеграмм ethereum blockchain ethereum rotator new bitcoin ethereum майнер ethereum эфир ethereum статистика bitcoin fan tera bitcoin
приложение bitcoin bitcoin compromised bitcoin вконтакте bitcoin change
bistler bitcoin bitcoin evolution In October 2013, the FBI seized roughly 26,000 BTC from website Silk Road during the arrest of alleged owner Ross William Ulbricht. Two companies, Robocoin and Bitcoiniacs launched the world's first bitcoin ATM on 29 October 2013 in Vancouver, BC, Canada, allowing clients to sell or purchase bitcoin currency at a downtown coffee shop. Chinese internet giant Baidu had allowed clients of website security services to pay with bitcoins.bitcoin laundering bitcoin кошельки
bitcoin book ethereum dag
film bitcoin bitcoin mmgp
bitcoin cudaminer tether coin avatrade bitcoin bitcoin invest dwarfpool monero bitcoin иконка bitcoin check ethereum ротаторы bitcoin hashrate bitcoin safe boom bitcoin goldmine bitcoin tinkoff bitcoin bitcoin carding bitcoin doubler
bitcoin автоматически 60 bitcoin bitcoin instaforex bitcoin биржа bitcoin linux bitcoin коллектор падение ethereum bitcoin информация бот bitcoin bitcoin weekend
source bitcoin habrahabr bitcoin json bitcoin добыча bitcoin работа bitcoin yota tether trusted third parties to process electronic payments. While the system works well enough forbitcoin мастернода Bitcoin vs. XRPbitcoin tx locate bitcoin bitcoin maps
bitcoin data bitcoin group half bitcoin bitcoin cudaminer проекта ethereum котировка bitcoin hashrate bitcoin tether верификация
bitcoin gif boom bitcoin
bitcoin alien bitcoin миллионеры новый bitcoin bitcoin heist
rinkeby ethereum Jump to navigationJump to searchинструкция bitcoin bitcoin алматы secp256k1 bitcoin But could one unscrupulous miner change the block, enabling the same litecoins to be spent twice? No. The scam would be detected immediately by some other miner, anonymous to the first. The only way to truly game the system would be to get a majority of miners to agree to process the false transaction, which is practically impossible.удвоитель bitcoin bitcoin кости bitcoin зебра bitcoin background bitcoin зарегистрироваться cryptocurrency analytics bitcoin рухнул tether wifi tether mining auto bitcoin china cryptocurrency выводить bitcoin calculator ethereum yandex bitcoin счет bitcoin
сборщик bitcoin bitcoin софт buy tether bitcoin casino rx580 monero ico monero bitcoin accelerator cms bitcoin подарю bitcoin uk bitcoin bitcoin genesis bitcoin котировка anomayzer bitcoin
pools bitcoin bitcoin investment сатоши bitcoin trinity bitcoin bitcoin работа удвоить bitcoin bitcoin save удвоитель bitcoin
bitcoin сделки Downloadflypool monero Smart contracts can take just minutes, as they are automated and programmable, running on a computer under predefined conditions. There are no third parties involved.Difficulty:micro bitcoin
bitcoin lottery сложность bitcoin anomayzer bitcoin
registration bitcoin monero форум invest bitcoin master bitcoin bitcoin node monero пул bitcoin monero новости bitcoin lealana bitcoin ethereum habrahabr анонимность bitcoin bitcoin euro monero новости It only takes a few minutes to create a secure account, and you can buy cryptocurrency using your debit card or bank account.Any tool should be useful in the expected way, but a truly great tool lends itself to uses you never expected.monero fr space bitcoin bitcoin today
monero купить
подтверждение bitcoin bitcoin passphrase bitcoin mmgp bitcoin 2 bitcoin терминал battle bitcoin gif bitcoin ethereum windows clockworkmod tether nodes bitcoin проверка bitcoin
опционы bitcoin bitcoin addnode bitcoin win bitcoin cranes bitcoin money платформа ethereum пример bitcoin bitcoin подтверждение bitcoin сети bitcoin people bitcoin xl bitcoin rates faucet bitcoin
ethereum контракт криптовалют ethereum
film bitcoin яндекс bitcoin mine monero difficulty ethereum ethereum bonus BitPay is an international payments processor for businesses and charities. It is integrated into the SoftTouch POS system for bricks-and-mortar retail stores. However, BitPay has an API which could be implemented into any other POS system with some coding work. BitPay has various tariffs that merchants can subscribe to, enabling features such as using the service on a custom domain (for online stores), exporting transactions to QuickBooks, etc.алгоритм monero bcn bitcoin
проверка bitcoin котировка bitcoin preev bitcoin bitcoin virus bitcoin key
bitcoin asic bitcoin dice bitcoin foundation bitcoin rpc майнинга bitcoin контракты ethereum bitcoin сатоши bitcoin покер lealana bitcoin транзакция bitcoin купить bitcoin torrent bitcoin reindex bitcoin bitcoin stock bitcoin best стоимость monero лото bitcoin monero free
bitcoin ether blockchain bitcoin ethereum краны алгоритм bitcoin accepts bitcoin bitcoin easy s bitcoin курсы bitcoin платформе ethereum fasterclick bitcoin bitcoin testnet bitcoin habr bitcoin сбербанк bitcoin prominer monero pool bitcoin завести tether курс carding bitcoin bazar bitcoin bitcoin loan халява bitcoin настройка bitcoin rocket bitcoin ethereum доллар рынок bitcoin miningpoolhub monero pplns monero bitcoin statistics bitcoin кошелек decred ethereum bitcoin ферма block ethereum chaindata ethereum bitcoin обналичить bitcoin 10000 ethereum платформа carding bitcoin poloniex ethereum bank cryptocurrency bitcoin стратегия bitcoin брокеры bistler bitcoin стоимость monero bitcoin пополнить bitcoin кэш bitcoin кошелек ethereum blockchain bitcoin рулетка bitcoin money что bitcoin bitcoin bank ethereum contracts 33 bitcoin bitcoin friday apple bitcoin вывод ethereum click bitcoin app bitcoin bitcoin wallet eth ethereum ethereum stats bitcoin weekend
bitcoin игры bitcoin darkcoin usb tether bitcoin desk bitcoin electrum blog bitcoin заработка bitcoin приват24 bitcoin
сети bitcoin bubble bitcoin
скачать tether андроид bitcoin cryptocurrency dash iphone bitcoin masternode bitcoin bitcoin приложение bitcoin video bitcoin machine bitcoin проблемы bitcoin fasttech
metropolis ethereum bitcoin play
segwit2x bitcoin оплатить bitcoin ethereum капитализация bitcoin wmx cryptocurrency mining
bitcoin explorer bitcoin github bitcoin ваучер logo ethereum bitcoin конвертер moon bitcoin bitcoin xt bitcoin cap 1080 ethereum loco bitcoin конец bitcoin bitcoin airbit казино ethereum stealer bitcoin
iphone tether bitcoin москва аккаунт bitcoin приложение tether проекта ethereum ethereum 2017 film bitcoin биржи bitcoin mine ethereum bcc bitcoin geth ethereum nem cryptocurrency home bitcoin bitcoin биткоин bitcoin kaufen 2 bitcoin maps bitcoin
bitcoin ishlash love bitcoin bitcoin сети
credit bitcoin foto bitcoin erc20 ethereum waves bitcoin bitcoin trader кредит bitcoin bitcoin email balance bitcoin bitcoin hash продажа bitcoin bitcoin dollar добыча bitcoin weather bitcoin
bitcoin dynamics bitcoin картинка magic bitcoin выводить bitcoin dwarfpool monero эмиссия ethereum ethereum btc flypool ethereum wikipedia bitcoin bitcoin автомат ethereum online ethereum майнер mining cryptocurrency bitcoin synchronization платформы ethereum bitcoin торговля карты bitcoin
обмен tether bitcoin donate виталий ethereum
forecast bitcoin bitcoin оборот ethereum перспективы ethereum скачать bitcoin conference byzantium ethereum tails bitcoin bitcoin me bitcoin фарм bitcoin фарминг ethereum монета bitcoin рухнул cryptocurrency gold email bitcoin bitcoin коды explorer ethereum bitcoin приват24
bitcoin 2048 bitcoin nasdaq фарминг bitcoin bitcoin crash ethereum mist forecast bitcoin
korbit bitcoin captcha bitcoin prune bitcoin coinder bitcoin bitcoin proxy conference bitcoin mercado bitcoin bitcoin mac
bitcoin background With this in mind, here is our guide to accepting bitcoin in a physical store.withdraw bitcoin etf bitcoin spin bitcoin explorer ethereum
store bitcoin cms bitcoin bitcoin maps bitcoin nodes пополнить bitcoin ставки bitcoin price bitcoin minergate ethereum bitcoin tor bitcoin сбербанк metropolis ethereum mmm bitcoin tether приложение bitcoin ether bitcoin donate
bitcoin proxy bitcoin play bitcoin paypal приложение tether view bitcoin форк bitcoin bitcoin virus bitcoin neteller asics bitcoin monero вывод bitcoin checker bitcoin 4000 pos bitcoin forum bitcoin bittrex bitcoin bitcoin explorer ethereum клиент pps bitcoin bitcoin авито халява bitcoin проект ethereum nvidia monero bitcoin fasttech bubble bitcoin coingecko bitcoin monero прогноз bitcoin обменники bitcoin io java bitcoin bitcoin fees bitcoin games bitcoin падает coinder bitcoin metropolis ethereum trading cryptocurrency символ bitcoin автоматический bitcoin
space bitcoin antminer bitcoin asics bitcoin bitrix bitcoin bitcoin майнер ферма bitcoin
bitcoin signals ecopayz bitcoin bitcoin logo A lower volume of traders and investors could mean slower transactions4pda tether blockchain monero bitcoin торги monero майнить bitcoin strategy bitcoin nedir перспектива bitcoin bitcoin etf blue bitcoin банкомат bitcoin bitcoin ira bitrix bitcoin buy ethereum tether provisioning обменять ethereum bitcoin 2048 краны monero bitcoin clouding bitcoin монет win bitcoin купить ethereum bitcoin покупка валюты bitcoin
decred ethereum bitcoin valet bitcoin yandex bitcoin icon love bitcoin wallets cryptocurrency global bitcoin cryptocurrency tech
token bitcoin bitcoin darkcoin форк bitcoin usb tether ethereum online
arbitrage cryptocurrency ethereum complexity
fenix bitcoin сделки bitcoin bitcoin рулетка bitcoin игры bitcoin гарант ethereum ann 50000 bitcoin bitcoin 2010 bitcoin валюта bitcoin sha256 bitcoin tx майнить bitcoin магазин bitcoin bitcoin eobot bitcoin space monero github ethereum хешрейт ethereum форки анонимность bitcoin
withdraw bitcoin 16 bitcoin bitcoin перевод bitcoin значок ethereum calculator bitcoin талк bitcoin казино monero minergate bitcoin презентация
keys bitcoin биржа ethereum monero hardware биржа bitcoin bitcoin fields cryptocurrency trading bitcoin капча пулы ethereum bitcoin компания ethereum telegram bitcoin приложение пример bitcoin cap bitcoin map bitcoin
bitcoin картинки lavkalavka bitcoin bitcoin игры laundering bitcoin кран bitcoin security bitcoin
bitcoin основы ethereum видеокарты сайте bitcoin
ethereum картинки bitcoin converter daemon bitcoin bitcoin kraken bitcoin client fox bitcoin
poker bitcoin bitcoin бот bitcoin system blender bitcoin bitcoin monkey game bitcoin monero кошелек bitcoin market bitcoin review новый bitcoin
monero обменник транзакции bitcoin bitcoin alpari boxbit bitcoin zebra bitcoin
bitcoin скрипт арестован bitcoin nodes bitcoin bitcoin обменять
ethereum node bitcoin golden bitcoin валюты майнить monero daemon monero хардфорк monero bitcointalk monero ecopayz bitcoin tether usd bitcoin комиссия checker bitcoin
bitcoin суть обменник monero linux ethereum bitcoin анализ monero краны bitcoinwisdom ethereum bitcoin london daily bitcoin pull bitcoin bitcoin дешевеет
bitcoin okpay
rx470 monero bitcoin simple ethereum install ethereum stratum moneybox bitcoin ethereum network казино bitcoin bitcoin миксер cryptocurrency tech nodes bitcoin bitcoin лопнет ethereum пулы bitcoin комиссия лотереи bitcoin the ethereum q bitcoin bitcoin ios bitcoin icons nya bitcoin bitcoin zona
bitcoin circle bitcoin chart ethereum github bitcoin анимация ethereum microsoft micro bitcoin
график bitcoin amazon bitcoin монеты bitcoin auto bitcoin bitcoin mmm coingecko bitcoin bitcoin ru
bitcoin qiwi Bitcoin mining is considered decentralized. Any person who has internet connection and a good hardware can readily participate. Bitcoin network’s security is dependent on this decentralization due to the fact that it makes decisions according to consensus.
