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RE: Decentralized Exchanges: The Future for Trading Cryptos

in #cryptocurrency7 years ago (edited)

No. I believe that that very fact will be a huge turning point in the Crypto adoption race. Now, there are cryptos like USDT that are tied to the value of its fiat counterpart. Thus, there are foreseeable workarounds. But this in fact, will give crypto more staying power in the long as the fees tied to converting crypto to fiat and back will be much higher, and the process more tedi

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I see. USDT is really the better way? Because sometimes we need to buy crypto coin asap. For now, only USDT can do that. Plus I don't like the idea of having tonnes of reserves of BTC. With all the hacking and all. Fiat is still the safe method in this current time. It will be great if these decentralized exchange could provide a bank account to bank in.

I think BitShares is what you are looking for. They have something called BitUSD that you can trade back to and hold value in dollars, if you'd like. You can also use the Bitshares you own as collateral and borrow BitUSD. In that way, BitShares is like a bank... but that you hold the keys to it.

I started using BitShares a couple weeks ago and it's awesome!

Bitshares is indeed a decentralized exchange. And it IS very close to what you are looking for. However, the volume is much lower than traditional exchanges, and in times of great depression, there is some fear that converting OUT of BitUSD could theoretically become difficult if not impossible. However, we are not in one of those times. I would just sort of caution you not to keep all of your assets there. Diversify, always : ).

Diversification is good. It is easy to move Dash, LTC and BTC on and off BitShares using OpenLedger. That means that you have to keep crypto in those currencies, as you may loose a lot trading to to them in order to get them off.

However, you can also use services like ShapeShift.io to convert BitShares to many other crypto-currencies.

The liquidity and volume problem is one that will hopefully be solved by posts like this (thank you @heiditravels) that promote decentralized exchanges and get more people to use them.

Ohh any fees charged? But they only offer limited amount of coins right? How would you compare with centralized one?

Fees per trade are around a hundredth of a Bitshare (so way less than 1 cent). There are a limited number of coins, but still plenty of good trade opportunities.

I can't compare to centralized exchanges because I made the decision early on in my "crypto-journey" to primarily use decentralized blockchain technology. So I have never directly used a centralized service.

Well, thats just the thing... Its not that Bitcoin isnt safe... Its that exchanges aren't. You can store Bitcoin in a cold wallet, offline, and there is no way ANYONE can get to them. In fact, banks CAN be hacked. Bitcoin store in the right way cannot. Cryptocurrencies are far better than bank accounts. To go a step further... People all over the world who do not have access to bank accounts CAN indeed have a Bitcoin wallet. They can also send money back home to families if they need to migrate to make money. Another plus for Bitcoin.
This post never meant to imply that Bitcoin wasnt safe, only centralized exhanges are unsafe :).
I would definitely look up an article on how to safely store Bitcoin for more reading. In fact, I think I will write a post on here later today :).

Sorry, to further answer your question... USDT is not the better way. It could only BECOME the better way if and only if USD was done away with entirely in exchange for USDT :).