Anytime you hear about a coin getting hacked or thousands of coins disappearing, it inevitably is because the exchange was breached. Since the blockchain is so hard to hack and exchanges are found on traditional central servers, it has become an easy target.
Bitshares is the first exchange to set itself up on the blockchain becoming a truly trustless and decentralized exchange.
How To Buy BTS
So you’re interested in buying BTS? Currently, there is no way to buy BTS directly with fiat, so the best way to buy BTS is to first purchase Ethereum, transfer it to your chosen trading platform and change it to BTS. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for BTS/ETH and confirm.
3. On the BTS/ETH trading section you can now choose how much BTS you want to buy with your Ether. Once you have chosen your amount, press Buy BTS and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of BTS.
The reason exchanges are not usually on a blockchain is because the verifying of blocks is painfully slow. This is especially true when talking about big Proof of Work chains like Bitcoin. Taking hours to validate a transaction could mean missing out on a hot coin as the value is rising.
BitShares is a peer to peer distributed ledger. It works with a Delegated Proof of Stake protocol. By voting for delegates or Witnesses, the validation process is streamlined.
By using the Delegated Proof of Stake (DPoS), transactions can be done quickly. Though it has yet to be tested, in theory BitShares can handle 100,000 transactions per second compared to Bitcoin’s 5 per second.
The native token, BTS, needs to be bought to act as collateral on the exchange. So, even if you are not planning to invest in BTS you need to buy some to buy whatever token you are interested in. The result is that the coin is more about using for equity than it is for use as an altcoin you would want to hold.
There are a couple of other benefits to using Bitshares as an exchange besides the trustless nature of it.
For one, you can put up any kind of asset. These assets can be used to exchange for fiat or crypto currency and since you aren’t trying to sell them can give you nearly instant access to funds. Those funds can be used to trade for other currencies on the Bitshares exchange or withdrawn.
The other benefit is the use of Smartcoins. Smartcoins are tied to fiat currencies that don’t fluctuate. For instance, the bitUSD will always equal one US dollar. Whatever the dollar is worth is what the bitUSD will be worth.
Buying Smartcoins and holding them while you wait for a dip in the market is a great way to take part in trading on an exchange without worrying about the volatility of a coin.
The last thing that sets Bishares apart from traditional exchanges is the community aspect and the democratization of it.
Delegates that have stake, ie own coins, can vote to approve or disapprove projects and decide for themselves what direction the platform should move in without a central authority involved in making decisions. Even the employees of the company have a stake in the future of it as they can propose projects and then the tokens are used to fund those projects.
The beauty of this project is the true decentralized nature of it. They didn’t just set out to create a trustless exchange, they also want to build a vision of what the blockchain can achieve by taking control away from authorities and putting it back in the hands of the people using these services.