Decentralized user accounts as Bitcoin prices have fallen. Decentralized

 DecentralizedBitcoin Exchange Platforms – What are the Benefits?  In 2009,Bitcoin, the world’s first cryptocurrency, was hailed by privacy advocates as amuch safer and fairer alternative to government-issued fiat currency.  Bitcoin was (andstill is) a completely decentralized, peer to peer digital currency andpayment system. This means that no bank or government intermediary can everconfiscate coins or restrict how tokens are transacted.   Sadly,cryptocurrency exchanges where people buy and sell digital assets, aren’tdecentralized.

This means that restrictions can be imposed on transactions.What is more, centralization is becoming an increasing problem for growingnumbers of real digital currency investors.  DecentralizedExchange VS Centralized Exchange Platforms – What’s the Difference? Most peoplelooking to buy digital currency for the first time will instinctively gravitatetoward exchanges like Coinbase. Such exchanges, however, are centralized. Thismeans that they store coins and process transactions in central serverlocations. Much more importantly, centralized exchanges are managed by peoplewho can limit, freeze, and confiscate assets at will.

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 Of course,the (apparent) benefit of centralized exchanges, lies with the fact that theyoffer people a high level of security when it comes to buying, selling, andstoring digital assets. In reality, however, nothing could be further from thetruth. CentralizedCryptocurrency Exchange Hacks & Suspended Trading  Woes In December2017 and January 2018, centralized exchanges Youbit, EtherDelta, and NiceHash,were hacked. This resulted in over $100 million in Bitcoin being stolen fromexchange users. Meanwhile, the same months saw cryptocurrency exchangeCoinbase, suspend thousands of user accounts during two separate peak tradingperiods.

– As a result, people looking to sell Bitcoin as prices plummeted,were left unable to trade or even move digital currency away from Coinbase. Of course,technical glitches can and do happen. December 22nd, however, was far from thefirst time that Coinbase has suspended trading and/or started limiting useraccounts as Bitcoin prices have fallen.

 DecentralizedCryptocurrency Exchange Benefits Given therisks associated with centralized cryptocurrency exchanges, it simply doesn’tmake sense for investors to store assets on such platforms. The good news,however, is that there is a safer alternative. Likeblockchain-based cryptocurrencies like Bitcoin, decentralized cryptocurrencyexchanges aren’t hosted on centralized servers. Instead, decentralizedexchanges are hosted by several individual blockchain nodes which no thirdparty can hack, administer, or influence. This means that no limits can ever beimposed on transactions and no individual accounts can ever be restricted orfrozen. HowDecentralized Cryptocurrency Exchange Platforms Work At present,notable decentralized cryptocurrency exchanges include the likes of Bitsharesand Bitsquare. These are exchanges which require no central authority tooperate.

Instead, they operate ‘trustlessly.’ This means they are incapable of restricting how users buy, sell, ortrade, and as an added bonus, guarantee end users near-total anonymity. FastEfficient & 100% Safe – Almost Because ofincreased hacking, government regulation, and fraud, cryptocurrency usersfamiliar with how blockchain technology works, are already migrating todecentralized exchanges. It should be noted, however, that decentralizedexchanges can prove somewhat challenging for anyone relatively new to the worldof cryptocurrency.  Given theabove, while decentralized exchanges are guaranteed to grow in number asdigital currency goes mainstream, new users should exercise caution.

 By allmeans, users should register with a decentralized cryptocurrency exchange. Whendepositing funds, however, new users should at first only deposit small amountsof digital currency. This and thoroughly research how different platforms work,especially when it comes to things like trustless identity verification.