Cryptocurrency Exchange

StellarX Decentralized Cryptocurrency Exchange Review StellarX Decentralized Commission-Free Exchange

StellarX Decentralized Cryptocurrency Exchange Review StellarX Decentralized Commission-Free Exchange

StellarX decentralized cryptocurrency exchange review

StellarX, a decentralized, commission-free exchange based on the Stellar cryptocurrency protocol, has successfully passed the beta stage and is now available as a full-fledged platform. A corresponding announcement was posted at the end of last week on the blog of the Interstellar project, which is developing the platform.

The exchange, which was originally announced in July, is based on the universal marketplace Stellar, an open source protocol for transactions between cryptocurrencies and fiat. According to CoinMarketCap, its own cryptocurrency XLM is currently the sixth largest digital asset at $ 4.9 billion..

The latest press release states that StellarX is a “gateway to real fiat” as it allows USD deposits to be made directly from bank accounts. In addition, the exchange supports tokens for a variety of fiat currencies, including the Euro, Chinese Yuan, Hong Kong dollar, British pound, etc. Interstellar writes that it plans to add digital versions of other assets such as bonds, stocks, real estate and commodities in the future..

Comparing its platform with the major American financial services provider Robinhood, StellarX emphasizes that it also provides its services for free, which is expressed in the form of compensation for all commissions by the company.

StellarX observes the main criteria that allow it to be called a decentralized exchange, although the company itself claims that it only provides an interface for exchanging cryptocurrencies: the user is the only custodian of the funds used in transactions, transactions are concluded directly between users, and the exchange does not have access to their assets.

“Any asset built on the Stellar network can, in theory, be mapped, whether it is a currency, commodity, security, utility token, or any other type of asset that your local legislation allows you to trade,” StellarX Terms of Use. “You are responsible for determining the legality of your transactions.”.

When a user enters the StellarX exchange for the first time, they are prompted to register by providing an email address and a password. This is the only form of identification that is required to trade on the platform. After that, the user is prompted to create a private key for the Stellar wallet, which will be linked to his account, and write down the recovery phrase.

A feature of StellarX is the format for presenting non-native assets on the trading platform. Essentially, they are all tokenized versions of the assets themselves. “They are pegged either to fiat, such as USD, or cryptocurrencies on other chains, such as Bitcoin or Ethereum. You can trade these tokens just like any others, and exchange them for the asset to which they are tied, “the developers explain..

Thus, there are three types of tokens on the StellarX platform: native tokens (originally issued on the Stellar platform), tokens pegged to fiat, and tokens pegged to cryptocurrencies of other blockchains.

In addition, StellarX supports a human-readable address format in which “*” is appended to the email address specified during registration. Users who do not wish to reveal their email addresses can use the usual public keys..

Before starting to trade, the user is expected to make a deposit. As mentioned above, in addition to XLM, StellarX supports other assets, including the fiat dollar in conjunction with the service. Using Anchor requires verification, but having a fiat dollar on a decentralized exchange is an interesting feature in itself..

To withdraw funds, users are invited to use an external Stellar address or specify an off-chain account. If a user wants to withdraw an asset presented on the platform in the form of a non-native cryptocurrency, he will need to visit the website of the service that issued the corresponding token. In the case of bitcoin, for example, this service is Naobtc, with which a user can convert bitcoin, presented in the form of a token on the Stellar blockchain, into full-fledged bitcoin. The issuer of the Ethereum token is Firefly, Bitcoin Cash and some other tokens – Apay. The full list of services is available on the exchange website in the column next to the name of the cryptocurrency.

Obviously, the StellarX developers still have a lot of work to do to expand the platform’s capabilities, the number of supported assets and users, but already now the new decentralized exchange based on the Stellar protocol looks like an interesting project that stands out against the background of analogs, many of which are intended for the exchange of assets issued on one blockchain (in particular, on the Ethereum blockchain).

Note: Currently, when entering from Russian IP-addresses, StellarX displays a message about the unavailability of the service in the specified region.

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