BitShares Review

BitShares Review

While it’s true that centralized exchanges have their benefits, such as being easy to use and easy to access, these exchanges also have security risks. This is why decentralized exchanges are spiking in popularity. That said, even though decentralized exchanges are becoming increasingly more popular with every passing day, individuals are still required to do a reasonable amount of research before selecting a crypto trading platform. 

One example of a decentralized exchange is Bitshares. Below is a comprehensive review of the trading platform.

BitShares Review

Launched in the summer of 2014, BitShares is a decentralized exchange that looks to remove the risk associated with centralized platforms. Daniel Larmier, CTO of Steemit, was the first to pitch the idea of the BitShares decentralized exchange. Note that the information below should not be thought of as an endorsement and always do your own research about a trading platform so as your own decision is an informed one. 

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What is BitShares?

In simple terms, BitShares is a decentralized exchange platform for individuals looking to trade virtual currencies without ever having to leave the blockchain. It is a high-performance exchange and has most of the benefits expected of a normal, centralized trading platform. In fact, BitShares can actually handle the trading volume of the Nasdaq exchange. 

BitShares has made quite the name for itself, primarily because it is a decentralized platform that cannot be compromised easily. Why? Because the data is stored in multiple places, not just one main location. 

What Does BitShares Do?

Essentially, the BitShares platform allows users to convert cryptocurrencies into stable assets. They can do this by turning those coins into another virtual currency whose value is tied to a real asset. 

Using BitShares 

BitShares is pretty quick and easy to use. It requires you to set up an account, but even then users aren’t required to provide copious amounts of personal information when doing so. The process of using BitShares can be divided into the following 6 parts: 

  1. Download the BitShares client. This is available on the BitShares website. 
  2. Make a Bitshares account. This requires you to download the app, select create a new account, and click “use the wallet model.” The latter is for higher security. After your account has been created, backup your account, download the backup and save it to your computer.
  3. Deposit BitShares or other virtual currencies. This is where a user chooses their service, and if they are using a fiat/gateway/bridge. 
  4. Exchange cryptocurrencies 
  5. Transfer BitShares or other virtual currencies 
  6. Withdraw virtual currencies and fiat 

Pros and Cons of BitShares

Pros 

  • Decentralized Platform: The first notable feature of BitShares is that it is a decentralized exchange, as previously mentioned. Of course, this is an advantage of BitShares as it means users are in control of their own security. So that means that if there is an attack, only one user gets affected.
  • Fast and Fair: The second notable feature of BitShares is that it is fast and fair. When I say fast, I mean that BitShares has the ability to execute trades within a matter of seconds. As for BitShares being fair, this is more than true too. Why? Because unlike centralized exchanges, BitShares does not have high-frequency trading. This means all traders are equal.
  • Takes Away Volatility: With the use of SmartCoins, the BitShares platform removes the volatility often seen in the crypto market.
  • Different Goals: BitShares doesn’t share goals with other platforms. In fact, BitShares is purposefully avoiding being thought of as a P2P currency. Instead, BitShares is focusing on becoming a 100% exchange with valued tokens.
  • Trade From Anywhere, Whenever: With BitShares, a user is eligible to trade any amount, from wherever in the world, at any time during the day.
  • Freedom: Another advantage of BitShares is that a user is given financial freedom. This is because a third-party is not required to approve your account.
  • BitShare is Secure: BitShares is very secure, and this is an important feature of the platform. In fact, every single thing held as a SmartCoin on the platform is backed up.
  • Fees: Another advantage of the platform is that there are no limits. There are no withdrawal limits, and if a holder is not happy with the fee, there is room for it to be changed.

Cons 

Even though BitShares is a popular decentralized platform, that doesn’t mean that BitShares doesn’t have areas in which it can improve. BitShares does have a few cons, but that’s okay because nothing is perfect.

  • Interface—The most common complaint centering around the BitShares exchange is that its interface isn’t very user-friendly.
  • Too Advanced—People have claimed that BitShares features are too advanced, making it very confusing to those that are new to the sector and to its platform. 

Featured Image: Depositphotos/© artefacti

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