A lot of people including Jihan Wu and John McAfee have prophesized that decentralized exchanges are the next big thing. This is in fact more than simple prophecy but exactly the blatant truth.
There are several lessons in history that remind us the dangers of centralized exchanges. Some of these are:
The ever famous MTGOX scam
Cryptsy also gone
Almost 70% of exchanges that were famous since 2012 are now defunct.
On a more recent note... Bittrex currently banning accounts for no apparent reason.
Now there are several factors that contribute to or cause the declines or closing of centralized exchanges. The reasons range from simple hacking/phishing insecure accounts and stealing money up to the controversial exchanges stealing money from their users and ever up to the more controversial which is the government holding secret (FCC) audits and finding ways to tax capital gains from crypto sales.
We already know what happens when you ban cryptocurrency - it becomes stronger but if you target the exchanges it deals a backbreaking blow. Simply put, the most dangerous place you can put your money in is inside the wallets of the exchanges.
People should force themselves to learn
With all the stuff that is going on, just as we investors are doing round the clock research. It also pays to be able to do round the clock readjustment of funds and making sure everything is stored and accounted for. People should force themselves to upgrade and to learn different coin storage techniques. Its the only way to keep your hard earned money safe.
The Advent of Crypto - Taxation
The US government has already found a way to tax your cryptos. They started out by taxing bitcoin buys and adding that tax amount indefinitely to the buy rate (Australia is doing 2x taxes as well). That does not end there, they are also devising a devilish way to tax capital gains. Being a developer, software engineer and part of a team of expert crypto traders, I can give a clue on how they will do it and I am sharing it with you now:
Backend Access + Tracing buys and sells + Using AI to determine a profitable sell and taxing it or the old fashioned way - taxing all sell orders
If they have a total of your sells for the month/year then they tax a percentage on that, it might sound very logical in government sense but that is totally hell for investors, traders and companies alike.
Decentralized Exchanges to the rescue
A decentralized exchange enables the exchange of tokens peer to peer (P2P) without any intermediary and without any fees (except for mining). Currently there are quite a few first mover decentralized exchanges and there are also a few motions to improve the decentralized world. However, once again the world is still very new to this arena and also by reading this article you have already gained an advantage.
The most popular decentralized exchange right now is EtherDelta with a daily trading volume of over $4 million. Being the top currently, it should gain advantage but the problem with Etherdelta is that it is not user friendly. In order for one to be able to trade correctly on the exchange, one should already have knowledge of order books, knowledge of how Ethereum works and ETH gas fees and different types of ERC 20 tokens, knowledge of Myetherwallet and how to be able to secure it, knowledge on browser cache and how to delete it and most especially a good grasp of pricing of different ERC 20 tokens traded there. Lots of people who are new to Etherdelta are victim to social engineering in line with Myetherwallet phishing sites therefore sending false notions of Etherdelta stealing their money. The fact is, the attack has already been performed on their Myetherwallet and not on Etherdelta itself. Sooner or later, either the site has to change their GUI to a more user friendly experience or another decentralized exchange will take its place this 2018.
Here are other promising decentralized exchanges, wallets and platforms.
| https://nvo.io/ |
|---|
| https://bisq.network/ |
| https://cryptoderivatives.market/ |
| https://blocknet.co/ |
| https://www.openanx.org/en/ |
| https://crypto-bridge.org/ |
| http://heatledger.com/ |
| https://radarrelay.com/ |
The most important thing to consider is that once again...People should force themselves to learn... in order to survive this radical shift
Now the rainbow Investment Advice - Crypto Backed Exchanges
Kyber - Vitalik is backing this as an advisor.
https://kyber.network/
ZRX Project -
https://0xproject.com/
Airswap - Backed up by Mike Novogratz as an advisor. Based on the ZRX platform, airswap is another contender to Etherdelta in P2P ERC20 tokens exchange.
https://www.airswap.io/
Bitshares decentralized exchange - has the potential to become the leader in remittance due to their BTS to country currency pairs plus the primary choice for online remittance platform Bitspark.
https://bitshares.org/wallet/#/
Waves decentralized exchange - The WAVES platform boasts Ethereum-like functionalities with a decentralized exchange as icing on top of the cake.
https://wavesplatform.com/
FYP - Fairly new ICO just finished accountless exchange
http://flyp.me/
OmiseGO - Peer to peer exchange, digital wallets and an overall great future for this Singapore based firm.
https://omg.omise.co/
Loopring - Blockchain agnostic decentralized exchange with Chinese roots
https://loopring.org/en/index.html
In this race for decentralization and privacy, now you have a handle on where to put your money into. Lastly, the reason we placed in one liner as a description for these coins is that we always encourage you to...