So, what’s EtherDelta?
EtherDelta is a decentralized cryptocurrency exchange specifically built to trade Ethereum-based tokens.
Essentially, the platform runs on smart contracts powered by Ethereum (ETH). The smart contracts are responsible for managing and trading deposits and withdrawals and wallet integration.
EtherDelta provides a marketplace platform to help facilitate the trading for ETH for almost any token compatible with the Ethereum network.
Founded in 2017 by Zack Coburn, the site prides itself in being the first point of access for a lot of ERC-20 tokens that were released soon after ICOs.
In this EtherDelta review, we present to you with the brutal truth about the platform – you will get to learn the good, the bad, and the ugly about EtherDelta. If you’ve been wondering whether the site is worth banking your investment on, then you’re in the right place.
Without further ado, let’s jump right in!
How EtherDelta Works
As I mentioned earlier, this platform offers smart contracts to its users – but what does this mean?
It means that a user doesn’t have to set up an account on the platform in order for them to transact – the deposits, withdrawals, and trades are executed through smart contacts. The smart contracts will, however, require you to integrate with a wallet on the site in order for you to transact.
As compared to other mainstream exchanges, EtherDelta is more decentralized and uses a compact interface that might require some getting used to.
Its homepage features the Order Book, Wallet, Price Chart, and so on. This ensures that users don’t have to navigate through menus to complete a trade.
With EtherDelta, you can always log into your existing Ethereum account or simply create a new one from the ‘Account’ icon of the home page.
And what’s more? Should you have a Ledger Nano S account, you can easily link or import any wallet or keys on to the site.
Navigating the site to use the EtherDelta exchange could be daunting to beginners –well, at least according to a decent number of user reviews.
You will first of all be required to transfer funds from your personal wallet to the exchange wallet.
The transfer process can be done by clicking on the ‘Deposit’ button under the ‘Balance’ menu after selecting an account.
After choosing to deposit, any funds held in your personal wallet will then be transferred to your exchange wallet.
All funds held under the smart contract of the exchange will then be seen under the writing ‘EtherDelta’.
The funds can be transferred by entering the ERC-20 or ETH amount of tokens to be moved from your wallet to the exchange. You can then click on the ‘Deposit’ icon.
Once done, a pop-up notification will display the address to Ether to scan for tracking the transaction. The transaction will then be verified and funds will be made available in your wallet.
The withdrawal process takes an almost similar procedure – you can click on the ‘Withdraw’ icon under the ‘Balance’ menu and key in the amount you wish to transfer to your personal wallet.
Once this is done, click on ‘Withdraw’ and complete the process.
You will notice that the EtherDelta platform is quite versatile – it offers its users a platform for trading a range of ERC-20 tokens, place a market, and limit orders just like other centralized exchanges.
For those who are always keen on every coin that comes out of their wallets, this section might just be the deal breaker.
Now, back in 2017, the EtherDelta team posted their fees for various transactions on Reddit as seen below.
I’ll just leave this for you to ponder over as we move along this review.
How Safe Is EtherDelta?
Is EtherDelta really safe for me? I know you ask yourself…
And you’re certainly right to question the safety of any brand no matter how credible the reviewer may be.
From the research I conducted about the platform, here’s what I can confidently say about the various aspects that make up for a secured exchange platform…
Compared to other exchange platforms, I found EtherDelta to be one of the most secure platforms of its kind due to a number of outstanding features. Some of these features include personal wallet integration, a decentralized operation, and smart contracts, among others.
The site only grants its users access through private keys and individual wallet addresses. In addition, there are multi-factor authentications, usernames, and passwords all geared towards tightening the security of your transactions on the platform.
Despite not having tons of users, the platform boasts of a decent number of loyal users in the blockchain space. This is due to its deference to user-controlled funds and enhanced security measures.
As much as the transactions are not instant, EtherDelta offers its users good handling speeds if customer reviews regarding efficiency and response time are anything to go by.
If like me you’ve ever experienced one of those unresponsive customer representatives when in an emergency situation, then you’re certainly nodding at this.
I remember at one time the EtherDelta site went down. You can only imagine the level of panic experienced by the users of the platform.
However, within a few hours, the CEO of the site had already explained to the general public the cause of the problem and how it was being handled.
Here is the video that sort of clear the mess…
Now, isn’t an explanation for a glitch such as this one a right of all investors?
Of course, it is!
But sadly, you’ll agree with me that not every platform feels that way.
No one expects perfection of anything, but we all like to invest in the ‘perfect’ places. If you’re considering EtherDelta as an investment destination, here’s our fair rating of the platform.
Beginner Friendliness—3 stars
Customer support—4.5 stars
Overall rating—3.75/5.0 stars
Why This Rating?
When it comes to beginner usability, the site simply doesn’t offer the best of interfaces. As I mentioned earlier, a number of users have found their platform to be relatively user-unfriendly as compared to its counterparts.
Customer support, on the other hand, to me is honestly more than average. With a live chat customer service channel, investors could definitely use some real-time support.
There’s no doubt that the security of your funds is paramount. With multiple security controls such as passwords, personalized wallets integration, a decentralized mode of operation, and smart contracts, the chances of theft and hacking are significantly reduced.
The fees charged by the site are not the best around but quite competitive. On this one, you’re welcomed to make your comparisons to come up with what works for you.
As I promised at the beginning of this EtherDelta review, let’s take a deep dive into the good, the bad, and the ugly about EtherDelta.
- Decentralized exchange platform
- Has a lot of tokens
- Has a reasonable number of positive user reviews
- Enhanced security features
- Faster access to new tokens
- Not user-friendly
- Trading only against ETH
- No instant transactions
- Slightly non-competitive rates
- No leveraged trading
- Non-intuitive exchange platform
In conclusion, here’s a word of caution: Exchanges have inherent risks – they can get hacked or go down for a while.
The owners can go rogue too.
This is not to say that such risks are common – no, they are not.
However, you need to understand that just like any other investment; this is a risk-taking venture too. DO NOT try to leave funds that you aren’t actively using on an exchange.
I can’t stress that enough.
Finally, I certainly hope this guide helped you understand how EtherDelta works and, quite possibly, helped you avoid any potential mistakes should you consider using EtherDelta.
And as Charlie Munger rightly put it, No wise pilot, no matter how great his talent and experience, fails to use his checklist.
Be sure to make use of this and other reviews available on our blog section to enable you to make more informed investment decisions.
Until then, happy investing!