What is EtherDelta?
EtherDelta is a decentralized cryptocurrency exchange founded in 2017 by Zack Coburn. The exchange manages deposits, trading and withdrawals through the use of smart contracts after the user has integrated his personal wallet.
EtherDelta became popular with traders looking for ERC20 tokens not supported by mainstream exchanges. At the highest level, the exchange produces $ 10 million in daily trading volume and is the most important platform for ERC20 traders in 2017. Since then, due to a change in leadership and the entry of additional competitors, these volumes have since slowly declined.
Trading with EtherDelta
The most notable feature of the site is the use of smart contracts and the fact that you do not need to open an account to complete the deal. The only prerequisite is the integration of a wallet on the construction site.
EtherDelta provides a compact interface that is not very intuitive and takes some getting used to. This is not very user-friendly and may cause users to misread and incorrectly enter orders. It's not uncommon for users to make costly mistakes when using Exchange.
On the first page you will find the wallet, the order book and the price chart. To complete a trade, no other pages need to be called.
The Select Account button allows users to associate an existing Ethereum account or create a new account with the Exchange. There is a wallet sync feature for Meta Mask or Ledger Nano S-Wallets. You can manage your account by clicking on the drop-down menu in the top right corner of the site. Then any wallets or keys can be imported or linked to the site.
To navigate through the exchange, you must first send the cryptos from your personal wallet to the Exchange wallet. To do so, select "Deposit" in the deposit field on the left side. Under "Purse" the amount from your personal wallet is displayed. The amounts transferred to the stock exchange are listed under "Ether Delta". Enter the amount of the ETH or ERC20 token that you want to transfer from your personal wallet, and then click Deposit.
Payouts are the same. Click Payouts in the Balance Box, enter the amount you want to move from EtherDelta back to your personal wallet, and click "Payout."
Because every trade in smart contracts is handled and the site depends on the ethereum network, trades move very slowly, especially when there is a serious network congestion.
Users can trade on the platform with a variety of ERC-20 tokens and place market and limit orders as well as centralized exchanges. Supported tokens include RChain, Populous, 0x, OmiseGo, Basic Attention Tokens, and Binance Coin. All tokens are traded against ETH.
The EtherDelta team has published the fees of the Reddit exchange. We've listed the key fees below:
- Deposit ETH: ~ 0.0003 ETH fee
- Retract ETH: ~ 0.0001 ETH fee
- Deposit mark: ~ 0.0001 ETH fee
- Payout mark: ~ 0.0002 ETH fee
- Trade: ~ 0.0003 ETH fee
- Cancel order: ~ 0.0002 ETH fee
EtherDelta does not charge for ordering, as it does not require an Ethereum transaction or gas fee. EtherDelta charges only 0.3% for the person placing an order (paid in the currency sold).
Deposits and withdrawals are also free.
How safe is it to use EtherDelta?
Theoretically, EtherDelta should be very secure through the use of smart contracts and the integration of personal wallets. The stock market uses a number of servers to keep the money out of the platform. The money transferred is stored in an account within the network of the stock exchange.
Hackers can see your wallet address, but they can not access your money without the private keys. In December 2017, the EtherDelta DNS server suffered a phishing attack. The EtherDelta website was compromised, allowing the hacker to replace it with a fake version of the stock market. The hacker managed to steal 305 ETH, then more than 244,000 US dollars.
The hacker also managed to get the private keys of the users who had deposited them on the wrong website. As a result, a lot of money was stolen by users even after the actual site was restored.
It also appears that EtherDelta changed management when it was sold by its original founder, Zack Coburn. The new team has made some unpopular implementations, e.g. For example, an ICO and modifying projects to list their tokens on the platform.
Users also expressed their dissatisfaction with a change in the new fee structure. Some letters of recommendation about the amount indicated in the Reddit post should be paid. The biggest damage the new team has suffered is the loss of confidence that took years to build.
- Decentralized trade
- Large selection of tokens
- The trading process is not intuitive
- Limited by the Ethereum Network
- Slow transmission times
- No information about the management team
EtherDelta had a promising debut, but the recent hacks and actions of the new management team have undermined the confidence of the community that has been collecting it so far. This lack of trust led to the creation of the ForkDelta project, which aims to restore the past practices of exchange.
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Contribution Source: EtherDelta Exchange Review | 2019 Guide
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