decentralized trading platform
decentralized trading platform
An idea came to my mind,
As we all know bitcoin is a decentralized digital currency, created to pay for things online and is not controlled by government institutions, and cannot be counterfeited which is perfect.
A lot of person are interested in becoming rich with it, which make us talk about trading. Trading is a big part of crypto currency and for me trading now is THE biggest topic related to crypto currencies, the subject I want to talk about is trading platforms ( like binance ).
Trading platforms is in paper a good idea, it makes it easy for anyone to buy any coin they want, with a user friendly interface and an easy use.
The problem with it is the kyc ( know your customer ), which is a law that force trading platform to add a document verification when you register with a new account ( basically they will know who you are to be able to register and trade crypto ) .
SO, for me it is a problem, because crypto currency is a concept based on decentralized system, so when these platforms have document verification, that the government have access to it when needed, they will be able to trace you back if one day you do something that does not make them happy.
And with trading platforms being the biggest topic related to crypto currencies ( for me at least ), it kills this point of view making it decentralized, and to add to this we can clearly see binance holding 200k bitcoins in a single wallet, and there is multiple other example of this.
what I want to say is that a trading platform is not a bad idea, but I want to know if decentralized trading platform would ever be possible, with no boss or CEO that controls it, it will be a place where you would be able to trade crypto with no one controlling it, so no kyc, no tracing back.
for me decentralized crypto currency is a genius idea, but for now we need a decentralized trading platform, because for me trading platforms helped A LOT to popularize crypto currencies and making it easy to buy.
Let me know what you think about all of this.
You can trade Bitcoin for fiat on Bisq and there are a multitude of decentralized exchanges for crypto to crypto trading. The only problem with crytpo to fiat DEXs is that there is not enough liquidity for them to ever replace centralized exchanges. You can work around it by using stablecoins on Uniswap and similar DEXs, although this might not be entirely ideal.