One of the topics I end up having to preach constantly on my blog is security. Of course, this is important to ensure you aren't directly hacked (or otherwise infiltrated) resulting in the loss of some or all of your coins.
However, the bigger risk in cryptocurrency has always been your exchange. Most of us don't have large enough cryptocurrency stacks that it would be practical to target us directly with hacking attempts - the time spent in acquiring targets and infiltrating individual systems wouldn't pay off. There is one location that is always laden with coins, however - your exchange.
Decentralized exchanges already exist - Bitshares, another of Dan Larimer's creations, comes immediately to mind - but adoption is lackluster. To some extent, this is an issue with the interface and the confusing nature of many of the "bit." pairs. However, the more likely overall reason is volume.
An exchange is generally only as useful to traders as its volume. Every trade requires matching both a buyer and a seller. If your exchange is empty it's completely useless; if it has low volume its usefulness is roughly proportionate to that volume. In other words, traders are generally encouraged by profit motive to move to the largest exchange with the most liquidity available.
Think of an exchange like an online auction website. Can you even name one other than Ebay? Would you shop at another one? Probably not, because even though Ebay is annoying, due to having the largest number of users it also has both the best prices and best selection. Exchanges are like that, only even moreso, since the exchange itself can't loss-lead by taking losing ends of trades like a new shop can lower prices under a competitor.
That's what makes the potential of a huge exchange like Bitfinex teaming up with EOS to create a LARGE, decentralized exchange very exciting. There has yet to be a decentralized exchange that wasn't focused around one particular cryptocurrency (at least, not that I am aware of.) The end result is always a much thinner exchange than desired, as only users/holders of that cryptocurrency participate.
A Bitfinex partnership ensures a big name and that should translate directly to big volume. The EOS partnership should ensure a decentralized nature and functioning product, as Dan has delievered on both in the past.
I look forward to being less paranoid about parking my coins on exchanges.
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Sources: EOS, Bitfinex, Google, CoinMarketCap
Copyright: EOS, Bitfinex, Google, Bitcoin.com
I think this is pretty big news. Thanks for sharing.
Yes the interface on BTS DEX and the way the price quote is given is different than the expected norm. One example is they would have this...
|Token|Price(USD)|Qtn|Value(USD)|
Price (USD) is not 1 token worth N USD but 1 USD buy N token. So you read and then you think WHAT? The number don't add up (QTN * Price is not Value)...
I couldn’t agree with you more that volume = successful exchange. I am curious why the Volume % are zero when it shows 24h volume of nearly $3.2M for both Bitshare Exchanges from your screenshot? Trading freeze? I have experienced several trading freezes in the past few months from my exchange. Although I understand the concept of protecting the market, it is quite annoying that sometimes I just need to take out 15 Steem so that I can open a damn Steemit account for a friend because he doesn’t want to wait for approval of a free account. Pardon my Francais. It also makes me distrust that I can freely move around what little coins that I have. How am I suppose to time a 20% return with a quick in-and-out transaction?
Anywho, I appreaciate the info. I hope EOSFinex performs well.
CoinMarketCap excludes any exchanges that haven't "reported" in X hours, though I'm not sure exactly what X is. This can happen if an exchange's trading API goes down, even if the exchange is functioning normally.
I thought you were joking at first with EOSfinex but now I see that as I visited their website that it is actually true... And I was thinking about buying some Bitshares a few days ago, hopefully I have read your article, thank you so much for this!
Yep, it does sound made up, but it's real!
But what if @dan will make a new EOSteem?
EOSFinex is very interesting indeed, and when I thought about it I realized that Bitfinex is not just making EOSFinex and Ethfinex.. but probably going All-finex in the sense that they are likely to couple the two together. I mean, why would they keep EOSFinex seperate from Ethfinex, when both smart contracts platforms are perfectly capable of inter-exchanging. EOS and ETHfinex are likely stepping-stones to creating an all-in-one mega DEX.
Perhaps this is Bitfinex's strategy in dealing with DEXes. Since most are protocols, they are still dependent on parties to tie the whole bunch together in some way. That would make Bitfinex remain relevant in a DEX-future.
I guess they figure if you can't beat their (future) feature offering, better join em.
Its a great partnership for EOS moving forward, with the launch of their later this year, it would be interesting to see how projects like these play out and whether they manage to attract the same kind of volume like these centralized exchange....While decentralization exchange is in demand I still feel we are some time away from having a game killer like this, I am thinking probably in 2019 (latter part) we can see this taking root, having features similar to centralized exchange is paramount and having trading environment would foster volume for growth
The sooner, the better. I am tired of being paranoid.
Ya, this may very well be huge, I don't see any reason people wouldn't adopt it. I'd love to use the bitshares exchange for everything, but like you said, too few pairings and too few people trading, seems like binance is the best overall. Looking forward to this!
Probably the best explanation of what my membership in Bitshares Dex is worth to me. Have only done a few trades there and for the most part end up losing value. Some of the gates have a large fee for withdrawing the currency out of thier system. I sort of feel like my investments are trapped there.
Good post and discussion. I'm looking forward to a large and successful decentralized exchange, if for no other reason, it will force current exchanges to rethink their approach and their fee structure.
Competition is usually good for us end users.
When will be this exchange available and really useful for traders? Ethos is trying to accomplish the same. OmiseGo too.
I have no idea, have not seen a date.
It seems like so many of the crypto blockchains or exchanges want to be "the" source for ICOs as well. It's going to be an interesting 2018 and 2019 when the tires hit the road and we find out which of the thousands of blockchain cryptos listed (current and future) actually carve out a place in this world. I believe we will see 1/2 of the current cryptos no longer exist by end of 2019.
I am very happy with the news that is given so through this post I found a lot of something very lucky. indeed through steemit we find a lot of news penti. both life and others
@syakiran.balya So... in short, you never read the post, lol.
My response to the post: I agree that you need a big name which already has a lot of trading volume for something to really take off quickly, however I do have concerns about Bitfinex, a currently centralized exchange wanting to build a decentralized exchange. Not to mention the funny business going on with them and audits and Tether, etc. I believe that backing a centralized exchange to create a decentralized exchange is a little like backing a government-issued cryptocurrency. You've gave your power back to the very people we wanted to take it away from!
I am curious how you have a rep of (1) when the minimum Steemit account starts with (15)?
I was a bad boy.
There's a story here.
Actually, unless it changed, it starts with 25.
I fully agree with your concerns. Tether makes me nervous.
Security is must . A good post by you. Amazed by your information on partnership
Coins mentioned in post:
Remove thyself from my post, scam-linker.
Bitshares and Blocktrades are incompetent.
Bitshares does not let me register from my computer.
Blocktrades let me register, but does not let me trade.
Bittrex does not want me.
Only Binance seems to be working for me so far, but I have yet to trade there.
I am glad to know about a new decentralized exchange, but since dan is involved, I assume it will not be long until he will quit it in favor of a new rivaling project and it will be shit like all previous dan projects.
EOS, ETH and BTS may be worse than USD, having an inflation rate on par with it, and at least with BTS I know it is dysfunctional.
I also remember I read some bad thing about Bitfinex.
Why did you refrain from sharing the link to it?
You are aware that scammers can imitate the logo, name, link and graphics and steal people's funds.
"Why did you refrain from sharing the link to it?
You are aware that scammers can imitate the logo, name, link and graphics and steal people's funds."
I don't think there is a link to provide yet, it's still in development. Good point though, often why I avoid linking too many items in general. Don't want to get people into the habit of trusting links.
ask an IT specialist for help
or try to install Google Chrome yourself
Smartass of the month goes to you without a doubt.
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