Buying, selling and trading bitcoins in a world of bitcoin exchanges is usually accompanied by a service charge from the trading company. This is where Bitsquare comes in, a distinctive exchange that stands out from others as it allows users exchange cryptocurrencies in a decentralized environment operating with low-cost payment to anyone. Fantastic choice right? So, what do you need to know about this exchange? Here is an introductory Bitsquare Exchange Review.
What is Bitsquare?
As mentioned earlier, Bitsquare is the ‘first fully decentralized cryptocurrency trading exchange’ operating with privacy-centric foundations. It uses peer-to-peer technology to operate with no central authority. All transaction management, including issuing money, is operated collectively by the network. This means that funds are not handled by the exchange itself, and cannot be hacked. In fact, it is not a company at all; rather it is a ‘Decentralized Autonomous Organization’ (DAO).
How it Works
This exchange relies on a secure and multi-signatory deposit system. This system is put in place to ensure honesty from both parties and to give users control of their funds. At currency exchange from users, the ‘pay and advance security deposit’ and the seller’s fund (BTC) are sent out to a ‘2-out-of-3’ multi-signature addresses. These multi-signatory addresses are controlled by the moderator, buyer, and seller respectively. Once payment is made by the buyer, the BTC gets released. The moderator ensures all transactions are honestly conducted.
Unlike many other exchanges, Bitsquare does not divulgence of sensitive information to get verified. It is founded on anonymity. All you need to do is download Bitsquare app, run the app, accept the user agreement. A BTC wallet will be created for you. You’re advised to backup your wallet file from the account button and encrypt the file in “Password.” After that, you’ll be set.
The major advantage to this cryptocurrency trading exchange is its decentralization. Decentralization enables higher fraud prevention, protects from government meddling, provides increased transaction time and financial efficiency amongst others. Crime, volatility, i.e., regular fluctuation in prices, and, storage issues are amongst the disadvantages of a decentralized system. The advantages of this system are numerous, although a centralized system is more advanced. If you are in need of a good cryptocurrency trading exchange, Bitsquare is a good place to start.