Exchanges

EtherDelta Review

Website : Etherdelta.com
Established : 2017
Support :
Country : Decentralized
U.S. Clients Allowed : Yes
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Background

In a short period, EtherDelta exchange was able to prove itself as the ideal destination for anyone who wants to trade ERC-20 tokens. EtherDelta functions as a decentralized cryptocurrency exchange that focuses mainly on Ethereum and ERC-20 tokens, the platform acts as a marketplace that promotes the trading of ETH for almost any token compatible with the Ethereum network.

Following its creation by Zack Coburn in 2017, EtherDelta soon grew into a hub for traders of Ethereum and any ERC-20 tokens. The decentralized exchange uses smart contracts that are capable of managing trading, deposits, and withdrawals once a client has successfully linked a personal wallet with the site.

The exchange owes much of its early success to the fact that it was the first platform where users have access to a lot of ERC-20 tokens that were released soon after ICOs. Traders usually went to EtherDelta to sell or buy tokens before they were listed on major mainstream exchanges.  At its peak, EtherDelta was able to make more than $10m in daily trading volumes, and it continued to be the premier option for ERC-20 token traders for much of 2017. However, a change in administration, as well as a rapid increase in the number of competing platforms, has greatly declined the trading taking place on EtherDelta over the last few months.

Account Verification

Most exchanges out there require you to open an account to trade and hold funds.  This account is located on the exchange’s network, and all your funds are contained in this account.  Your account is secured with Passwords, usernames, and (sometimes) multi-factor authentication.

With EtherDelta, however, all of your accounts used to manage your fund are located outside the exchange. Ether Delta’s smart contracts work together with each wallet addresses and private keys to allows users to access these accounts.

So, anybody that doesn’t have an address’ private keys cannot access that address’s funds, whether they are in the main account or within Ether Delta’s smart contracts.  This technique makes EtherDelta more secure than traditional exchanges, which hold your private keys for you.

In case of the traditional exchanges like Bittrex or Binance you face a potential someone gaining access to your account which might lead to the unauthorized possession of your funds.  With EtherDelta, hackers might see the address of your wallet, but without having that account’s private key, they can’t touch the funds in it.

Trading Platform

As said earlier, one of the features that distinguish this platform form other exchanges is its use of smart contracts. Therefore, users do not need to create an account on the platform as the functions of trades, deposits, and withdrawals, are carried out through smart contracts that merely require a user to integrate a wallet on the platform.

EtherDelta is a decentralized entity, unlike other mainstream exchanges, and it also utilizes a condensed interface which requires some time to get used to it. The homepage holds all the relevant features such as the wallet, order book, and price chart and users do not need to go to any other pages to execute their trades.

The platform has a “Select Account” button that lets clients sync an already existing Ethereum account or to create a new one with EtherDelta.  Users can also link a Ledger Nano S or a Meta Mask account, and to manage an account.  You can import or connect any wallets or keys with the site after this.

EtherDelta Fees

Placing orders on EtherDelta is free as it doesn’t include an Ethereum transaction, the only platform fee EtherDelta charges is a 0.3% fee paid by the user executing an order (in the instrument being sold.)

EtherDelta team outlined the platform’s fees through a Reddit post as follows:

Place an order (add liquidity fee) free

Execute against someone else’s order (take liquidity fee) 0.3%

Deposits and Withdrawals

Deposits and Withdrawal process on EtherDelta is not much different from other exchanges. The first thing you need to do is to transfer the funds from your personal wallet or to sync with the existing wallet. To do this, click on “Deposit” from the Balance box on the left-hand side of the page and any funds in your personal wallet will be listed under “Wallet,” any funds that have been transferred to the exchange’s smart contract will be listed under “Ether Delta.” To make a transfer, you need to enter the amount of ETH or ERC20 token you would like to move from your wallet to the exchange and then click on “Deposit.”

When this is done, a pop-up will reveal the Etherscan address that allows you to follow up the transaction.  After verification of the transaction, you will see the funds in your exchange wallet. Users can follow the same process to make withdrawals, and it’s required to click on Withdrawals in the Balance Box, and then enter the amount you want to move from EtherDelta back into your wallet. Once this is done, you only need to click “Withdraw” to complete the process.

Is EtherDelta Safe?

Theoretically, EtherDelta’s use of personal wallet integration and smart contracts ought to make it one of the most secure crypto-exchanges functioning today. Besides, the platform uses some servers and does not demand users set up accounts or hold their funds on the platform. Funds are transferred from existing wallets to the accounts based inside the exchange’s network.

However, the actions of the exchange’s new management team, who has decided to stay anonymous, and the recent hack have worn away most of the confidence built up by the former team. The plans the new management have for the platform and the measures they are taking to secure the site from any future attacks are still currently unknown.

This lack of trust has resulted in the rise of the ForkDelta project which intends to run an exchange in keeping with the former practices of EtherDelta. There are also some alternatives such as Ethfinex, IDEX, and Radar Relay that have taken over a considerable quantity of EtherDelta’s trading volume.

Therefore, we do not recommend EtherDelta as an ideal option for new traders when there are more efficient and safer options available. Experienced traders who still want to trade on the platform should create a new account through Metamask and make sure that it doesn’t hold more than the funds needed to complete a particular trade.

Alen Mathews

Alen Mathews

Alen is a professional cryptocurrency trader. His commitment to help potential investors to choose the right broker is unmatched. Alen successfully tested numerous cryptocurrency exchanges which helped him gain precious knowledge and insight necessary for understanding how to compare them properly. Alen has also been very active scoping for comments online to deliver unmatched user experience to potential investors.

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EtherDelta Rating

EtherDelta Rating
7.4

Ease of use

Fees

Support

Security

Pros

  • Decentralized exchange
  • Wide Range of Tokens
  • Positive user reviews

Cons

  • Non-competitive fees
  • Difficult to Use
  • No leveraged trading
  • Trading only against ETH