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.
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.
It is operated by the EtherBoost team a well trusted Eth decentralization advocacy team, they run many other decentralized websites like:
- https://predictiontoken.github.io - A prediction / sportsbetting market
- https://etheropt.github.io - Decentralized OPTIONS exchange
- https://ethereumdollar.github.io - It looks like some kind of pegging mechanism to the USD
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:
- Chat: https://gitter.im/etherdelta/etherdelta.github.io
- Slack: https://slackin-etherboost.rhcloud.com
- E-mail: http://kontactr.com/user/etherboost
- Twitter: https://twitter.com/etherboost
- Reddit: https://www.reddit.com/user/frenchhoudini (Zack)
And the source code of EtherDelta can be found and inspected here:
- https://github.com/etherdelta/etherdelta.github.io (the source code of the website)
- https://etherscan.io/address/0x4aea7cf559f67cedcad07e12ae6bc00f07e8cf65 (the source code of the etherdelta contract that does the magic behind the scenes)
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
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.
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:
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:
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.