A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of DC-Ex consists of four parts: general information, fees, deposit methods and security.
DC-Ex claims to be the first peer-to-peer trading platform in the world for e-currency and cryptocurrency.
DC-Ex does not list US-investors as prohibited from trading, but US-investors should still do their own independent assessment of any problems arising from their residency or citizenship. In a worst-case scenario, they may not be able to trade at one or several exchanges that could otherwise be the best cryptocurrency exchange site for them (maybe including this one).
DC-Ex Trading fees
This peer-to-peer trading platform doesn’t charge different fees between takers and makers. Their fee model is instead something called a “flat fee model”. The exchange’s flat fee is 0.15%. The exchange does accordingly not distinguish between takers and makers. For investors who prefer to pick-up existing orders from the order book, this might be an attractive trading fee model.
0.15% is slightly below the global industry average which is arguably around 0.25%.
DC-Ex Withdrawal fees
Many exchanges have competitive trading fees but then hit you on the way out with their withdrawal fees. Let’s say you have reached your investment goals and you are looking to buy house with bitcoin. In order to buy that house, you need to withdraw the funds. And BAM – withdrawal fees.
DC-Ex charges a withdrawal fee amounting to 0.0025 BTC when you withdraw BTC. This is also in line with industry average.
This trading platform offers wire transfer as a deposit method, but you can’t deposit via credit card. This of course negative news to you if you would prefer to use your credit card for any reason.
The servers of decentralized exchanges are normally spread out. This is different from centralized exchanges that normally have their servers more concentrated. This spread-out of servers leads to a lower risk of server downtime and also means that decentralized exchanges are virtually immune to attacks. This is because if you take out one of the servers, it makes little to no difference for the network of servers in its entirety. However, if you manage to get into a server at a centralized exchange, you can do a lot more harm.
Also, if you make a trade at a decentralized exchange, the exchange itself never touches your assets. Accordingly, even if a hacker would somehow be able to hack the exchange (in spite of the above), the hacker can not access your assets. If you make a trade at a centralized exchange, however, you normally hold assets at that exchange until you withdraw them to your private wallet. A centralized exchange can therefore be hacked and your funds held at such exchange can be stolen.
The exchange reviewed above is what we call an “entry-level exchange”. This means that this exchange also makes it possible for someone to enter the cryptocurrency market with fiat currency. There are numerous entry-level exchanges out there, including (but not limited to):