A crypto exchange guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of EtherFlyer consists of four parts: general info, fees, deposit methods and security.
EtherFlyer is a decentralized exchange (DEX) registered in Samoa. It is the only exchange in our Exchange List from that country. EtherFlyer has actually been around for some time, at least from the time prior to the big crypto-boom in December 2017. Its launch date was in October 2017.
The 24 hour trading volume of this exchange used to be decent, but not anymore. On the date of first writing this review, being 17 April 2019, the reported 24 hour trading volume was USD 6.9 million. Based on that, EtherFlyer made it into the top 100 list of exchanges with the highest 24 hour trading volume, but only with a tight margin (place no. 98). Then, on 28 June 2019, the reported 24 hour trading volume was USD 68.5 million. The place on the top 100 list was then a comfortable no. 81. Great improvement! But, on the date of last updating this review (15 October 2019), the 24 hour trading volume of Etherflyer was only USD 505,000. In most cases, such a great drop in liquidity is a sign that the exchange will soon have to close down…
EtherFlyer does not list USA as a “prohibited country” or anything similar. So our belief is that US-investors may trade at this exchange. In any event, US-investors should always do themselves the favour of forming their own opinion on any issues arising from their residency or citizenship.
General Information on DEXs
DEXs are becoming increasingly more popular, mostly due to the following factors:
- They do not require a third party to store your funds, instead, you are always directly in control of your coins and you transact directly with whoever wants to buy or sell your coins.
- They normally do not require you to give out personal info. This makes it possible to create an account and right away be able to start trading.
- Their servers spread out across the globe leading to a lower risk of server downtime.
- They are essentially immune to hacker attacks.
However, DEXs normally have an order book with lower liquidity than their centralized counterparts and if you lose your password, it is probably lost forever.
But, as mentioned above, they are definitely gaining market shares against their centralized counterparts. You have probably heard of at least one of the following exchanges that are all DEXs: EtherMium, EtherDelta, Bibox, Bitshares Asset Exchange, Waves DEX, Bancor Network, OpenLedger DEX, CryptoBridge DEX, Stellar DEX, IDEX, Token Store, Bisq, Nxt Asset Exchange, Counterparty DEX, Burst Asset Exchange, OmniDEX, CryptoDerivatives, AirSwap.io, Fcoin Exchange, Barter DEX, Switcheo Network, or DEx.top. Right?
EtherFlyer also proudly states that there are no KYC-requirements here, there are a lot of supported cryptos, and the trading engine is fast. Trading engine can process more than 1 million orders per second when its performing at its highest level. This is very impressive.
EtherFlyer Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen crypto and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can see that it feels right to you. This is the trading view at EtherFlyer:
EtherFlyer is also available as an application in your phone. This can be helpful for any investors interested in trading when “on the go”. Research shows that a vast majority of all crypto trades are executed through desktops. But, if you’re a mobile-kind-of-person, the EtherFlyer app might make you happy!
EtherFlyer Trading fees
Trading fees are naturally very important. Every time you place an order, the exchange charges you a trading fee. The trading fee is normally a percentage of the value of the trade order. At this exchange, they don’t divide between takers and makers. Each party to a deal pay the same fee: 0.20% of the order value.
0.20% is in line with the current industry average. Industry average has for a long time been 0.25%, but we are currently seeing a shift towards lower fees. Many exchanges now charge e.g. 0.10% or 0.15% instead. Maybe EtherFlyer will follow that example as well, but for now the fees are sitting at 0.20% per trade.
EtherFlyer Withdrawal fees
EtherFlyer does not support trading in BTC, so they naturally don’t have a BTC-withdrawal fee that we can compare against other exchanges’ BTC-withdrawal fees. Their ETH-withdraw fee, however, is 0.005 ETH. This should be compared with other exchanges’ ETH-withdrawal fees in our Exchange List, such as EtherDelta (charging only 0.0007 ETH per ETH-withdrawal), Allbit, Radar Relay and Kyber Network (all of them charging only network fees, 0.004782 ETH per ETH-withdrawal) and Bilaxy and EthFinex (both charging 0.01 ETH per ETH-withdrawal).
In comparison with the above exchanges, EtherFlyer’s withdrawal fees are perfectly fine.
This exchange does not accept any other deposit method than cryptos, so new crypto investors are restricted from trading here. If you are a new crypto investor and you wish to start trading at this exchange, you will have to purchase cryptos from another exchange first and then – as a second step – deposit them here. Don’t worry though, you can find a so called “entry-level exchange” simply by using our Exchange Finder tool.
The servers of DEXs 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 DEXs are virtually immune to attacks. This is because if you take out one of the servers, it has little to no impact on the full network of servers. 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 DEX, 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.
As this exchange is a DEX, we feel that it is appropriate to award it a security score of A+ (regardless of its score in the Mozilla Observatory-test).
Finally, as mentioned above, this is a DEX. DEXs are still a minority in the crypto industry, with the centralized exchanges still dominating the field (mostly due to the better liquidity). In any event, if you’re looking for a DEX, you could also check out the following quite popular ones:
- Counterparty DEX
- Fcoin Exchange
- Switcheo Network