10 Decentralized Cryptocurrency Exchange list you can use to trade

Lot of traditional cryptocurrency exchanges have been hacked in the past. Are you looking for better alternatives where your investment is safer?

Recently a big wave of decentralized cryptocurrency exchanges have come across. Will this wave sweep the centralized exchanges away from the mainstream? Well, one day it might will – if it can be proven as more secure than conventional centralized exchanges and as reliable and easy as centralized exchanges then that day is not far when everyone will be using decentralized cryptocurrency exchanges.

We use Decentralized currency on centralized websites – sounds like an oxymoron, right? Decentralized websites, at the moment, might not be as easy as it’s counterpart because if they were then whole system how things on internet work now will change. Decentralized technologies are taking small steps but will learn to fly soon. It’s client/server model vs P2P.

Let’s wait and see how this journey goes. Meanwhile, try to get hands on experience on these decentralized cryptocurrency exchanges, if you got the hang of it then you’d spend more time doing trading on de-ex (decentralized exchanges) then ce-ex(centralized exchanges). Some people might find decentralized exchanges difficult to work with so it will take some time to work around these exchanges.

These are the decentralized exchanges that are worth trying. Do try these exchanges and let our readers know how it is so they can learn from your valuable experience.

1- Etherdelta
Etherdelta probably have the most number of cryptocurrencies available. More than 300 cryptocurrencies

It has a total volume of above 1,135 BTC which is pretty good.

2- Crypto-bridge.org
The CryptoBridge exchange with its graphene can process more than 100,000 transactions per second with average confirmation time of only 3 seconds.

Cryptobridge have more than 68 coins listed and have volume of 140 BTC.

3- Wavesplatform.com
Waves decentralized exchange (DEX) is still in the beta phase but it has a pretty neat user interface that is completely usable. Waves also have a cryptocurrency. Their DEX is built using waves blockchain. Here, you can trade using BTC/ETC/ZCL/LTC and many other coins.

On Waves DEX, the volume is usually above 1500 BTC which is pretty good for DEX.

Waves have 72 cryptocurrencies listed on it.

4- OpenLedger.io
OpenLedger uses BitShare’s graphene technology to provide its services

Here, you can trade more than 120 cryptocurrencies and the total volume is more than 300 BTC.

5- Bisq(BitSquare)
Bisq has 12 cryptos listed and has volume of 1.92 BTC.

6- Stellar DEX
Stellar’s DEX have 12 cryptocurrencies with a total volume of 123 BTC.

7- Bancor
Bancor have 26 coins listed with daily total volume of more than 200 BTC.

8- BarterDEX
It has more than 12 coins listed and total volume is 0.52 BTC.
Counterparty DEX
It has 8 coins listed and liquidity is pretty low at o.56 BTC.
9- Altcoin.io (LAUNCHING EARLY 2018)

10- district0x (coming soon)

What is a decentralized cryptocurrency exchange?

The meaning of decentralized is “to move the control of an organization or government from a single authority to multiple authorities.

To understand decentralization in Technology is different from decentralization in ways how government or an organization operates.

Decentralized means something that is not centralized. E.g. anything that is controlled by single individual or authority is considered centralized, think of it like a small organization or a company with CEO. All the important decisions are made by one individual. But, if organization was decentralized then according to the experience and expertise of each individual they will be able to decide the fate of the company.

There is no common definition of decentralization as more and more research has been going on in this field. People are more used to centralized way of doing things.

All major cryptoexchanges are centralized. Centralized exchanges have single point of failure, meaning if one server is hacked then personal information of all the account holders is compromised. As you know what happened to Mt.Gox and many other exchanges – all these hacked exchanges were based on centralized model.

Bitcoin was the first decentralized cryptocurrency that was held electronically and that allowed people to transfer value between them without trusting the third party. But, problem comes when people use decentralized currency on centralized exchanges. Both of these models totally differ from each other.

Even though centralized exchanges are easy to use and offers advanced options like placing orders in advance, margin trading etc but with this ease and advance options comes security issues as happened in the past. Even though some exchanges are better protected than other but nobody can give you guarantee that your data is safe with them.

So, the question is how to trade cryptocurrency with interested buyers and sellers without putting all your savings at risk? The answer lies in decentralized exchanges.

What is a decentralized cryptocurrency exchange?
Decentralization is about distributing functions and powers to many instead of giving it to any one. On decentralized exchanges your personal information, wallet information, funds etc does not save with a third party.

Decentralized exchange is based on peer-to-peer(p2p) model. The trade doesn’t go through central server before being processed. As buyer’s and seller’s requirements are met the order is executed.

On decentralized exchange the order is processed between two parties without involving any third party.

What are the benefits of decentralized cryptocurrency exchange?

One big benefit of the decentarlized exchanges that centralized exchanges cannot offer is the trustless nature of decentralization where there is no need to trust any party with your personal information such as name, date of birth, bank account, wallet info, private keys etc

You are not held at the will and honesty of the exchange.

The hosting of a decentralized exchange is p2p meaning every node, computer or participant is helping to maintain maximum uptime to keep the system online and run flawlessly.

Centralized = Exchange controls your funds, private keys
Centralized = Exchange have your personal info
Centralized = Server Downtime
Centralized = Single point of failure
Centralized = Can be hacked

Decentralized = You control your funds and private keys
Decentralized = You maintain anonymity
Decentralized = Not prone to hacking
Decentralized = No downtime. Maximum uptime

What are the disadvantages of decentralized exchanges?
At the moment, If security and protection of personal identity is a plus of decentarlized exchanges then centralized exchanges have other plus or advantages.

Centralized exchanges offer ease of use, advanced options like margin trading, stop loss, lending etc while decentralized exchanges are limited to basic options like setting order to buy or sell. In the decentralized exchange you need to be online for your order to be processed but with centralized this can be processed even when you are not online.

Centralized exchanges have higher liquidity meaning there will always be someone to buy your coins and somebody you can buy coins from.

In short,
Centralized = Ease of use
Centralized = Advanced Options
Centralized = High liquidity

Decentralized = Difficult in use
Decentralized = Basic features
Decentralized = Low liquidity

DAG Cryptocurrencies Comparison (Byteball vs IOTA vs RaiBlocks)

Do you know DAG or Directed Acyclic Graph is the upcoming technology that have the potential to disrupt the existing blockchain based cryptocurrencies? If you are not paying attention to this, then I guess you should start learning more about it so you can also see the potential that is hidden inside it. DAG have the potential to solve problems that exist in blockchain and if and when it does this the DAG based cryptocurrencies will sky rocket.

Comparison given here is between three DAG cryptocurrencies, DAG Coin is not listed in the comparison. If you know about more DAG cryptocurrencies or want to compare more DAG cryptocurrencies then let me know through comments.

Byteball IOTA RaiBlocks
Address reuse Yes Not after sending Yes
Chain type Main chain DAG PoW DAG dPoS DAG+Blockchain
Confirmation time (theoretical) 30 seconds Instant Instant
Confirmation time (current) ~10 minutes? Minutes to hours, to a day? ~10 seconds
Consensus Mainchaindeterministic Minimal PoWprobabilistic Weighted dPoS voting
Developer ownership 1%? 5%? 4.8%?
Distribution Free airdrops1% premine Public ICO. No premine Manual mining via captcha
Distribution complete No Yes Yes
Divisibility 1 GBYTE: 1 billion Bytes 1 MIOTA: 1 million IOTA 1 XRB: 1024 raw
Fees Very small, based on size of data stored No fees No fees
Focus Smart contracts. Storing arbitrary dataValue transfer Internet of Things (m2m) Value transfer (h2h)
Inflation None/Deflationary (minus distribution) None/Deflationary None/Deflationary
Offline transactions Via blackbytes? Yes Yes?
Partnerships A few? Many None as of 2014?
Public team Partially? Yes Yes
Privacy Yes via Blackbytes EventuallyTest mixer Not on chain
Quantum resistant Not yet. Via NTRU Yes No?
Smart contracts Yes Not yet? No?
Supply (Current) 645,222 GBYTE 2,779,530,283 MIOTA 133,248,290 XRB
Supply (Total) 1,000,000 GBYTE 2,779,530,283 MIOTA 133,248,290 XRB
Transaction limit (theory) Unlimited? Unlimited Unlimited
Transaction limit (current) 20-30 TPS? 500 TPS in stress tests 7k TPS on Testnet?

Source: https://www.reddit.com/r/CryptoCurrency/comments/7iv20r/dag_coin_comparison_byteball_iota_raiblocks_etc/ 

What is DAG? Directed Acyclic Graph. Any good?

Lately, you must have heard about DAG and it’s cryptocurrencies and that it is a competitor of blockchain or might replace the blockchain soon. Well, in this post I will try to explain what is DAG, how different it is from blockchain, which cryptocurrencies use DAG etc

The DAG that IOTA uses is called Tangle.

DAG stands for Directed Acyclic Graph (with Acyclic pronounced as ey-sahy-klik, ey-sik-lik). Acylic means “not displaying or forming part of a cycle” As you can see it is communicated as a graph and what is graph? A graph is something that has vertices and edges.

Graph looks something like this

Below is a comparison b/w DAG and blockchain

First and foremost, DAG is not a blockchain and it is completely different from it.

 

Now, let’s discuss what is a Cyclic graph?
Any graph that contains at least one cycle is called cyclic graph.

Acyclic is the opposite of cyclic. Any graph that does not have a cycle is called Acyclic graph.

DAGs are direct graphs that have topological sorting. DAG emphasises that one task must be done before moving on to the second task. Think of acyclic graph like a river because it flows only in one direction but it can be divided into many parts connecting to the main river from the upstream.

Scalability:
We all know that with many blockchain based cryptocurrencies the scalability is a big issue, especially for Bitcoin didn’t turn out to be very scalable as people perceived it to be. DAG solutions implemented so far appears to be more scalable.

Time:
Time it takes to do a single transaction have increased significantly in blockchain based cryptocurrencies like Bitcoin which for some transactions even take 1 day to process. DAG based cryptocurrencies have faster processing time. Byteball have confirmation time of 10 minutes, RaiBlocks have confirmation time of 10 seconds and IOTA people claimed in Dec 2017 that for some of them it is taking more than a day which I guess happened for very few people.

Transaction Fees:
Bitcoin transaction fees has gone up too much with $3 or more even for small transactions, this makes Bitcoin and other blockchain based cryptocurrencies less preferable for micro transactions. Byteball claims to incur users a very small transaction fees while IOTA and RaiBlocks charge no transaction fees.

Cryptocurrencies based on DAG:
IOTA
DAGCoin
ByteBall
RaiBlocks

If you know any other DAG based cryptocurrencies, let us know through comments.

The advise to get from here is that DAG indeed looks like a promising solution to problems that exist in blockchain but nobody knows who will win in the end. Proof of Work worked for Bitcoin but few problems also arose, can DAG solutions propose better replacement of Proof of Work? If they do, along with solutions to other problems, then definitely DAG based cryptocurrency prices will go up.

This post was to give you a basic overview of what is DAG. I will cover DAG in more detail in upcoming posts and keep this one updated too.