A decentralized exchange (DEX) is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system typically requires the trust of its users in the honesty and security of the system and its operators, since there is no human-in-the-middle intervening to prevent or mitigate frauds, theft, or other malicious acts.
How does an Ether Delta trader can get started?
Firstly, install MetaMask extension in your web browser. Next, login to EtherDelta’s website using you Metamask web3 identity. If you have never used Metamask before, use any account that doesn’t have more than $5 worth of Ethereum on it. The reason is that if someone steals your private key on MetaMask, they can access your full Ether balance as well. Also make sure you don’t lose/forget your password!
Setting up your MetaMask Wallet
MetaMask allows you to view, send, and receive tokens from your browser. It will also give you an address for accessing decentralized exchange sites such as EtherDelta. For buying and selling cryptocurrencies on these kinds of sites, MetaMask is required because it gives you access to web3 (Ethereum's interface with browsers).
There are two main ways to purchase cryptocurrencies: exchanging for them on an exchange or using your own funds to mine for them. Each method has its pros and cons, but here’s what you need to know about buying crypto coins.
Before you can exchange Bitcoin for Ethereum, Litecoin, or any other currency, you have to convert it into your desired currency. This is where Coinbase comes in. Coinbase is one of a few sites that will let you sell Bitcoin.
Moving Funds from EtherDelta to your own wallet
The EtherDelta team recommends that you do not send your funds from EtherDelta directly to another wallet. Instead, we recommend that you withdraw your tokens from EtherDelta into an ERC20 compatible wallet like MyEtherWallet or MetaMask. From there, it’s easy to move your funds from that wallet, whether it’s to your Trezor device or another exchange platform such as Binance.