EtherDelta - Decentralized Token ExchangesteemCreated with Sketch.

in ethereum •  9 months ago

We knew for some time that the era of centralized exchanges is fading away. There are simply just too much hackers, too much counterparty risk and too much hassle (KYC, Non-fungibility ,etc...) with traditional exchanges. So meet EtherDelta, the solution to this. One caveat through, it's not 100% decentralized but it's getting there, but I think you can run it from your own computer as well, if that it true, then it is, otherwise it runs from a website which can still be hacked by social engineering their host provider, which I hope in 2017, they don't fall for that.

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Otherwise it is the real deal. It is a decentralized exchange, for ETH based tokens to be traded on. No KYC, no privacy invasion, and so simple to use that even your grandma can use it.

EtherDelta

It is operated by the EtherBoost team a well trusted Eth decentralization advocacy team, they run many other decentralized websites like:

It is run by Zack Coburn and Tina Trinh, who are well respected people in the ETH community already.

But it actually doesn't matter, you don't have to trust them, because the website itself is totally source-code based, and deterministic. The .github.io hosted websites I think they are directly compiled from the source code, deterministically, so it's basically a 100% open-source website, and the contract that it runs is also 100% decentralized.

Although if you have any questions you can get in touch with them:

And the source code of EtherDelta can be found and inspected here:

So it's open source, trustworthy, so we can trade here tokens safely. It's a very cool exchange, so if you are interested in ETH based ICO's and tokens then definitely check it out.




How to Use It

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You either create a new address, where you will send tokens or ETH, or you use one of your existing addresses, and import it's private key there. If you create a new address, make sure you back up the private key of it, otherwise it's lost.

I'd just create a new wallet for example on MyEtherwallet if you are not sure, back that up, and then import it's private key into the EtherDelta website. Then send some tokens or ETH to it, that you want to trade there.

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You can also Reset the Cache, this will reload the website, but make sure you back up the private key if you created a new one before doing this. And you can also set the gas price to speed or slow down the transaction speed, but I'd just leave it to default.

Then let's say you’ve imported there an address, which is your account there basically, that has 5 ETH on it, and you want to trade with it. It would show up like this:

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But you can’t trade yet, since this money is still in your address, you need to send the money into the EtherDelta contract system. So you see at the Balance there, a Deposit button, you have to deposit this money into the contract. But you can’t deposit all of it, because a tiny bit will be chipped of as fees, so it’s always good to leave like 0.002 ETH on the address itself just to have enough money to support the fees. The fees are probably lower than this, but I’d just leave this amount there just to not have to worry about it.

In fact you can see the fee table here:

It looks like the deposit fee is: 0.0003 ETH, but I’d just leave there 0.002 or something like that to not run out of money. Otherwise you can’t withdraw it unless you deposit more ETH into the address, so if all you got is 5 ETH, then I just send 4.998. Similarly if you want to sell some token there like PLU, you still need to have some ETH on your address to be able to execute the contract. Also the trading itself deducts some ETH as well, because the contract has to be triggered with gas. So just leave there 0.002 or more on the address, and deposit the rest of it into the contract, and don’t worry about the transaction fees.
So after I deposit the 4.998 it looks like this:

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As you can see 4.998 ETH is ready to be traded with the tokens, and 0.002 is left on the address in order to sustain the trading and other types of fees. I can just withdraw that 4.998 ETH any time, so that still remains my money, it’s just that it is inside the EtherDelta contract now, ready to be traded, but it’s still mine, it can be stolen from the contract.

After that you can just pick some token from there and buy/sell it, either by creating an order as a market maker at the price level you choose, or by taking an order from the available orders in the orderbook.

The trading fees are extremely low as well, 0.3% of the volume size which is very very low, and it is paid by the taker not the maker, so if you just place an order, it’s the person who takes that order will pay the fee. So market making there is literally free.

You can also trade EDG there, that I have been talking about in the past:

It looks like the order book is very thin there, so the price can easily crash to 0.00061 for example, if somebody were to place an order there @ 0.00062 price, then maybe somebody would sell into that, and then it can be sold back to @ 0.003 price, it would be an easy 483% ROI profit, just like that.

There are also frequent arbitrage opportunities, especially on the PPT market, I have seen some idiot buy like 0.002 ETH higher price on the BID side than on the ASK. I don’t remember exactly but it was something like 0.02485 BID / 0.0225 ASK. So in this case you’d just buy the @ 0.0225 Ask order and sell it back to the sucker who buys it at @ 0.02485 ETH, and easy 10.4% profit, and it was something like 1 ETH size, so that is like 0.104 ETH free money right there, basically 23$ for FREE.

And there are many arbitrage opportunities like that, it is not a that liquid exchange, so if you watch out for these you could make some free money this way.


So that’s it, check it out, and see if you fall in love with this exchange:


Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational or entertainment purposes.


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Haven't heard about this exchange, thanks I will take a look.

I use the Metamask Wallet with the EtherDelta site. It is so much simpler to use. No need to import private key etc...

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What do you mean? How does the Metamask wallet work then?

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Metamask is basically a chrome plugin. Just setup your wallet as normal ie. word phase, password etc...When you use EtherDelta the exchange recognises the wallet immediately so u don't need to setup an account at EtherDelta, your Metamask wallet is your account wallet.

Download Metamask from here: https://metamask.io/

See this video from crypt0 to buy and sell using Metamask on EtherDelta:

Having said that I only used Metamask on EtherDelta exchange to buy and sell tokens but have not yet sent tokens out to other exchanges yet.

So something I will need to look into. Though no problems with sending and receiving Ether.

Hope the info helps.

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There is also a firefox plugin as well which was recently released.

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Looks like I will have to look into this, definitely makes things easier as it seems.

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I've been wanting to do a post on this for a long time but need to find out as much as I can about before I do. You will probably beat me to it but anyway I will try to put one together.

Omg, those currencies...
profitgenerator, we need more people like you on this channel.
Btw. you can find out about yourself at this terminal, I found you based on what the machine thinks I like about you, haha.

This sounds a really cool option. Thanks for doing an article on it :)

Click through for crypto news & investment articles @jhcooper7

Damn looks like somebody have already added that 0.00061 EDG buy order there. People are fast.

I am positively thrilled I found your article, I never heard about Etherdelta and I'm loving it. Guys like you really add value to Steemit I will be following you. Thanks.

I don’t remember exactly but it was something like 0.02485 BID / 0.0225 ASK.

Are you saying this is happening on etherdelta itself??? Why isn't etherdelta matching / sweeping up the inside market and leaving the balance (if any) as a bid, or am I missing something here?

That's how every real world exchange would work. And this is not like different market makers or ECNs posting bids and offers that are unable to cross one another.

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was just looking at it and yeah, that's kind of nuts. apparently, if you create a new BUY order, it doesn't match up with the live sell orders. You have to click on the current live order you want to pair off with, as opposed to "creating" a new BUY order (and vice-versa for sells) to fill an order already on the book.

created account there to trade Populous.. only place it's trading rn

Can anyone speak to the safety and security of ether delta?