Beginners Guide to Decentralized Crypto Exchanges

Beginners Guide to Decentralized Crypto Exchanges

Decentralized crypto exchange platforms have grown to become the best marketplace for buying, selling, and exchanging cryptocurrencies. Cryptocurrencies latest news and history organized by date that contains 1000000+ news archives. Click here to read what world was saying about cryptocurrencies. With new technologies evolving, criminals find easier ways for illicit activities — that is the dark side of anonymity and decentralization. Source link “Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto assets in general, but there What is Russia’s position on Bitcoin and Blockchain? This question has long fueled debates within the cryptosphere. It now appears to be in the process of being resolved with recent decisions taken by the Russian authorities in this regard. The latest information indeed shows that the Russian government would prioritize the development of the blockchain, … Illustration: Chaitanya Dinesh Surpur In March 2018, Sumit Gupta was readying himself for the launch of a cryptocurrency trading exchange that he had been toiling over for months. Crypto supporters would be able to buy and sell digital tokens like bitcoin and even exchange them for Indian rupees (INR) on his platform, CoinDCX. Banks were, …

Decentralized crypto exchange platforms have grown to become the best marketplace for buying, selling, and exchanging cryptocurrencies. 

But centralized exchanges (CEX) are still the most common platforms which integrate intermediaries. 

Centralized crypto exchange platforms typically share similar characteristics with traditional financial institutions. Their primary feature is the intermediaries’ presence, responsible for managing traders’ assets.

CEXs have been handling the greatest trading volumes in the history of crypto trading. Nonetheless, their shortcomings cannot go unnoticed. Centralization puts users’ privacy, funds, control, and more at risk. 

Therefore, decentralized exchanges came into the picture to give everyone the real value of their assets. So, what are decentralized exchanges?

Decentralized exchanges create a trustless platform, enabling peer-to-peer transactions between users without the need for third parties. Following the current ban on cryptocurrencies in some countries, DEXs provide an opportunity for cryptos to grow and become more successful.

Application of the peer-to-peer transactions commences from the development of digital assets that can stand for a particular fiat or cryptocurrency. Furthermore, developing the exchange tokens is also achievable through escrow, a multi-signature protocol, and assets representing a portion of a company’s shares.

There are different designs in the building of DEXs that distinguish their functionality in trading of currencies. This factor categorizes them into two:

Currency-centric DEXs run on a single blockchain, limiting their escrow services to the native token of the platforms. For example, using Ethereum, all escrowing activities surround Ether and ERC-20 tokens. If other exchanges run on the blockchain, their native tokens are subject to similar services. This infrastructure is what traditional exchanges employ in their trade.

Unlike currency-centric exchanges, this category facilitates the interactions between different native tokens besides theirs. They act as a pathway for traders to exchange any cryptocurrency without dependence on an exchange’s native token. Additionally, some use decentralized order books and matching besides regular purchase and sale of digital assets.

Atomic swaps are a standard integration to allow activities in currency-neutral DEXs, creating smart contracts to facilitate trade on other blockchains.

Decentralized exchanges need to employ total decentralization in four vital elements:

  • Decentralized depositing of funds within the exchange
  • Decentralized order books, which display digital buy and sell orders
  • Decentralized order matching, which matches bids and asks by traders to initiate cryptocurrency trade
  • Decentralized asset exchange whereby accounts on the exchange perform crypto transactions
  • DEX protocol accompanies a variety of advantages that boosts its usability and sustainability, as mentioned below:

    Unlike centralized exchanges, which require users to submit their personal information, DEXs are entirely private, giving anonymity to every user. There is no need to create an account on DEXs, and users can complete their transactions while still anonymous. 

    Securing the user’s assets is the primary priority for DEXs. Centralized exchanges largely depend on a central server. In case a hack occurs, these platforms experience significant losses, seeing as all the information is stored in a central location. DEX networks utilize distributed nodes that provide security to the exchange platforms. Distributed nodes eliminate any issues concerning downtimes and slow databases that make the system prone to cyber-attacks.

    In CEX platforms, a single body is responsible for controlling the exchange activities. The situation is different with DEXs that use nodes. Users participate in voting as every node plays a role in governance to make necessary implementations for the exchange platform. DEXs further eradicate risks of government involvement in the exchange’s activity.

    Centralized exchanges have access to a user’s private keys. CEX platforms manage the funds and assets a user owns. However, with DEX’S decentralized feature, no one can access the private keys belonging to the user, giving them full control over their funds and assets.

    Private keys are solely in the hands of the owners. Personal custody of a user’s assets is practical since they are stored on a personal wallet. Therefore, you do not need to trust the exchange’s system even during any platform breaches. Thanks to the blockchain-powered exchanges, the funds and assets are intact, stored on the personal wallets, and decreased chances of loss.

    DEXs present limited trading options; users can only buy and sell. CEXs, on the other hand, offers lending, margin trading, stop-loss features, and more. Moreover, since the trader is in complete control over their funds, the exchanges have no responsibility for what happens to your assets; it creates a risky environment for trade.

    DEXs have a problem with liquidity due to low trading volumes in the past. Considering the increased adoption by traders, there is an upsurge in trading activity on DEXs eradicating liquidity limitations. 

    The technicality of DEXs’ features is hard to comprehend for novice traders in the market. Most require users to connect to an exchange’s dApp or set up a personal wallet to interact with a dApp. Some require setting up full nodes that actively participate in the networks, which is a more tasking endeavour. However, some of these exchanges offer more straightforward interfaces for beginners to be well acquainted. 

    Block DX is the most decentralized, safe, and fastest DEX platform currently. It boasts full decentralization of deposits, order books and matching, and trade. It runs on the Blocknet protocol, an open-source protocol facilitating interoperability in both public and private blockchains.

    Block DX’s native token is BLOCK, utilized in the network’s transaction fees and governance. It is a PoS coin, rewarding BLOCK holders and node services on the Block DX platform. Furthermore, users have the freedom to trade with any pairs among the currencies supported by Block DX, including BTC, LTC, DOGE, BCH, and over 100 more. 

    The exchange serves users with limitless trading, withdrawal, and deposits at cheaper transfer fees and zero withdrawals fees. Furthermore, traders have an additional advantage to leverage data from the Block DX UI. It ensures fast transactions through its network of distributed nodes and in-built DoS protection.

    The endgame of Block DX is to provide an uncensored, trustless, open-source, secure, reliable, and truly decentralized network. Interoperability will improve the quality of services and liquidity of blockchains through the Blocknet protocol. Finally, it proves that DEXs have the scope to take the reins in crypto trading from CEXs soon.


    Author: By Giorgi Mikhelidze
    – 27 Sep 2020

    Cryptocurrencies archive news by date

    Cryptocurrencies archive news by date

    • Money’s Greatest Minds Are Hitting Your Screen
    • Here’s Binance CEO’s take on how to ‘sort of slow down crypto-adoption’
    • Only 2.5 million Bitcoin left to mine
    • Top 5 cryptocurrencies to watch this week: BTC, DOT, CRO, XEM, XTZ
    • Singapore Crypto Exchange Ku Coin Loses More than $100 Million in Hack
    • The 51% Attack Nightmare Scenario (Isn’t That Bad)
    • How to Keep Your Cryptocurrencies Safe in 2020
    • Head of Crypto at Visa Explains How Automated Market Makers Such As Uniswap Work
    • SEC clarification letter offers support for crypto firms
    • World Economic Forum Names XRP As Crypto Asset Most Relevant in Central Bank Digital Currency Space
    • Here’s how Bitcoin spot, derivatives will do, following the expiry
    • Novogratz: Dangerous Time to Be in Stocks, Bitcoin Has More Upside Than Gold
    • Freeze, pause, reboot: Projects react differently to $200M KuCoin hack
    • Optimism For Ethereum as Layer 2 Testnet Gets Launched: What Does It Mean?
    • Bitcoin Gains $300, Is Now Trading at $10,700
    • Here’s How to Sell Reddit’s Crypto Tokens For Cash
    • Why traders are not worried that the KuCoin hack will drop Ethereum price
    • Crypto Long & Short: The OCC’s Stablecoin Statement Is a Seed of Financial Innovation
    • Bitcoin Price Analysis: BTC Bulls Regain Control, Plenty Of Room For Growth Above $11k
    • Grayscale Investments Scooped Up Over 17,000 BTC in the Last Seven Days
    • Aave Technical Analysis: LEND Flashing Sell Signals, Downside Eyes $0.5
    • Bitcoin Will Morph From Rocket Ship to Cruiseliner, Says Macro Investment Guru Raoul Pal
    • Defi Token Exposed as Pump and Dump Scam in Leaked Telegram Chat
    • Grayscale Investments now has almost 450K Bitcoin in its position
    • KuCoin: User Funds Will Be ‘Covered Completely’ After Friday’s $150M+ Hack
    • NZ crypto companies undergo probe by Inland Revenue
    • Ethereum price in flux, liquidation level at $400
    • Ripple Price Analysis: Upside Continuation Likely Above $0.25
    • Uniswap becomes first DeFi protocol to hit $2 billion in total value locked
    • Uniswap Tops Maker as ETH Locked Approaches 3 Million
    • Russian lawmakers propose a new bill seeking harsh penalties for unreported crypto holdings.
    • Bitcoin Balances on Exchanges at 2-Year Low and That May Be a Bullish Sign
    • Indian state Tamil Nadu announces its blockchain policies.
    • Huobi Zeroes In On Russian Crypto Traders with New Mobile App
    • Bitcoin Soon To $11,000? U.S. Market Futures Opened The Week In Green (Market Watch)
    • Several Crypto Assets With 100x Potential Poised to Challenge Chainlink, Says Lark Davis
    • This Ethereum coin hit $40m and retraced 75% in the 24 hours after its launch
    • EY releases new tool for analyzing Bitcoin transactions and on-chain data
    • 2.5 Million of Bitcoin Supply to Be Mined before 2140, Half of Then to Be Mined in Next 3 Years
    • Amazon Prime Day Slated for October 13 and 14, Promises Extra Support for Small Businesses
    • Stellar Lumen (XLM) Price Could Rally Sharply if it Clears $0.078
    • Grayscale Buys Another $186 Million in Bitcoin: Approaching $6B Crypto Assets Under Management
    • Market Analysis Report (28 Sep 2020)
    • U.S. Judge Blocks Trump Administration’s Attempt to Ban TikTok Downloads from U.S. App Stores
    • 36-Year-Old Nevada Woman Indicted For A Bitcoin Murder-for-Hire Scheme Gone Awry
    • Binance Coin, NEM, Verge Price Analysis: 28 September
    • Dock Simplifies Verification Processes Through Blockchain Technology
    • Bitfinex expands beyond crypto, launches equity derivatives that settle in Tether
    • Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities
    • $2B Locked: Uniswap Now Bigger Than Entire DeFi Industry Just Two Months Ago
    • Another Epoch awaits Cardano as Bittrex finally updates $ADA wallet
    • Bank of New York Mellon Allegedly Aided OneCoin Ponzi Scheme’s $4 Billion Fraud
    • Almost 2 Million Test ETH Currently Staked on Ethereum 2.0’s Medalla Testnet
    • Cardano (ADA) bursts back into Coinmarketcap top ten
    • Donald Trump’s taxes worrying investors while crypto keeps calm
    • Assets locked in DeFi protocols have surpassed $11 billion
    • Trump, tax and hacks: 5 things shaping Bitcoin price action this week
    • Satoshi Nakaboto: ‘88% of all Bitcoin has been mined’


    Darknet, cryptocurrency and two intersecting health crises

    Darknet, cryptocurrency and two intersecting health crises

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    With new technologies evolving, criminals find easier ways for illicit activities — that is the dark side of anonymity and decentralization.

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    What are the best cryptocurrencies to buy in October?

    What are the best cryptocurrencies to buy in October?

    • Institutional investors are looking to substantially hike their stakes in major cryptocurrency, mostly Bitcoin
    • Bitcoin, Ethereum and LINK are all well-positioned to benefit from a new crypto bullish trend
    • 32% of surveyed participants expect hedge funds to drastically increase their crypto holdings

    A new crypto study performed by crypto asset insurance firm Evertas, showed that institutional investors are looking to substantially hike their stakes in major cryptocurrency, mostly Bitcoin (BTC), but other crypto assets as well. Here, we take a look at which digital coins are likely to benefit the most in case another wave of crypto starts this week.

    The survey, which involved 50 institutional investors that together hold more than $78 billion in digital assets in the United States and the United Kingdom, showed that around 26% of participants think that pension funds, insurers, family offices and sovereign wealth funds will dramatically increase their stakes in crypto.

    Accordingly, 64% of participants think the surge in interaction will be weak, however, they also believe that hedge funds will be more involved in crypto. Nearly a third (32%) of surveyed participants expect hedge funds to drastically increase their crypto holdings. 

    Institutional investors are looking interested to raise their Bitcoin holdings as well as other digital currencies because they think regulations in the crypto market will get better in the future. 

    Some also expect the market to grow and offer better liquidity, something that the majority of institutional investors demand. A bigger and better market will also include a broader range of instruments for institutions to invest in.

    However, the study also pointed to several obstructions on the road to crypto institutionalization. Over 50% of the respondents voiced their concerns over the lack of insurance for crypto assets, while some of them are not satisfied with the quality of custodial services, trading desks, reporting facilities and the procedures of other companies operating in the crypto industry.

    “Our research shows that institutional investors are enthusiastic about increasing their exposure to cryptocurrencies and crypto assets in general, but there are clearly many issues regarding the infrastructure that supports these markets that still concerns them. These clearly need to be addressed if the full potential of investment from institutional investors in crypto assets is to be realised,” said J. Gdanski, Chief Executive and Founder of Evertas.

    On the other hand, prospects on regulating Bitcoin and other cryptocurrencies are not as optimistic for other crypto sectors. 

    These other sectors are decentralized finance (DeFi) and stablecoins, which have grown dramatically this year and are likely to face their own regulatory challenges in the future. 

    “Since DeFi protocols are designed to be permissionless, anyone in any country is able to access them without any regulatory compliance. As a result, DeFi can easily become a haven for money launderers,” said blockchain analytics company Ciphertrace.

    Even though Bitcoin hasn’t rallied after its halving event this year as many expected, institutions didn’t lose interest in the top cryptocurrency. Trading volume for Bakkt’s Bitcoin futures hit a new high of over $200 million worth of contracts exchanged, meaning that institutional investors are still accumulating BTC.

    At the same time, mainstream fund managers are also coming into the market, one of the indicators that the majority of Evertas survey respondents consider a major factor in the institutional adoption of crypto.

    Given that investors are showing more interest in cryptocurrencies and their regulatory scenery is becoming more evident, institutional investors are expected to continue to show interest in those assets.

    As the world’s most valuable digital coin, Bitcoin price tends to lead the way and move higher in the initial phases of a new bull trend. If BTC/USD can continue to trade above $10,500, the chances are solid that the digital coin may start moving higher as early as this week. 

    In this case, the BTC buyers will be aiming for $11,200, $12,200, and $13,800.

    After trending in a continuous downtrend since mid August, Chainlink (LINK) price has started to recover this week. Despite it falling to a 2-month low earlier this week, the buyers successfully erased all losses and pushed the digital coin to trade more than 10% higher on the week.

    LINK is now well-positioned to continue recovering higher. Targets higher for investors looking to buy LINK are $12.15, $13.65, and $15.15.

    Ethereum (ETH) price has managed to stay above the 2-month ascending line at $350.00. The buyers will need to push above $365.00 – the horizontal bull/bear line – before considering levels above the $400 handle. 

    The 100-DMA provides additional support at $330.00. On the upside, traders looking to buy Ethereum will aim for $390.00, then $415.00, and potentially 445.00.

    A recent survey by digital asset insurance company Evertas showed that institutional investors are planning to dramatically raise their stakes in Bitcoin (BTC) as well as other cryptocurrencies in the future. Bitcoin, Ethereum and LINK are all well-positioned to benefit in case another wave of crypto buying is initiated. 

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    “Blockchain, not Bitcoin”, Russia’s position becomes clearer – Cryptocurrencies

    What is Russia’s position on Bitcoin and Blockchain? This question has long fueled debates within the cryptosphere. It now appears to be in the process of being resolved with recent decisions taken by the Russian authorities in this regard. The latest information indeed shows that the Russian government would prioritize the development of the blockchain, without supporting… Bitcoin.

    Now more than ever, Russia is accelerating its development in areas such as blockchain, quantum computing, artificial intelligence and 5G. Recent statements by the Russian Deputy Prime Minister seem to corroborate such a state of affairs.

    Addressing the upper house of parliament last Wednesday, Andrey Belousov identified blockchain as one of the preferred technologies for the Russian government. It is indeed one of the technologies that would facilitate interactions between the state and large companies.

    In addition to blockchain, the Deputy Prime Minister also touched on other key technologies that would positively impact Russia’s development. Among the latter, we find artificial intelligence, microelectronics, quantum computing …

    AboutAndrey Belousov, it also emerges that Russia must take measures to facilitate the use of the new technologies mentioned above. Along these lines, the Russian government is reportedly considering creating a new business ecosystem.

    About that, Andrey Belousov recently declared: ” During the recent parliamentary elections, nearly 30,000 Russians were able to vote online. They fulfilled their civic duty thanks to an online platform built on a blockchain authorized on Waves “.

    All this is proof that positive signals are being sent by the Russian state regarding the use of blockchain and certain technological innovations. However, it is necessary to await the results of such decisions over time in order to be fully fixed.

    On the other hand, if Russia seems convinced by the potential of blockchain technologies, when it comes to Bitcoin and crypto currencies, it remains a big “niet!”


    Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

    If the merits of all these technological feats are no longer to be demonstrated, the risks associated with their use should not be concealed. However, it should be noted that the Russian experience in this area will allow other nations to turn to these revolutionary technological innovations. One of the conclusions that can be drawn at this point in time is that Russia’s stance on Blockchain and several other hi-tech innovations is sure to be emulated in the region.


    Despite Looming Ban, Industry Remains Optimistic On Cryptocurrencies

    Despite Looming Ban, Industry Remains Optimistic On Cryptocurrencies

    cryptocurrenciesIllustration: Chaitanya Dinesh Surpur

    In March 2018, Sumit Gupta was readying himself for the launch of a cryptocurrency trading exchange that he had been toiling over for months. Crypto supporters would be able to buy and sell digital tokens like bitcoin and even exchange them for Indian rupees (INR) on his platform, CoinDCX. Banks were, of course, central to the model, just as they are when shares are bought and sold on stock exchanges.

    But a week before the platform’s unveiling, the Reserve Bank of India (RBI) arbitrarily banned banks from dealing with crypto companies, making it impossible for investors to trade in crypto to INR pairs. “It completely shattered us and our round,” says Gupta, referring to the fundraising offers he had received from investors until then, including Flipkart’s Sachin Bansal, which all but dried up.

    “Overnight we had to change our plans,” he continues. CoinDCX pivoted to a peer-to-peer (P2P) exchange where individuals holding digital tokens could trade them with others without exchanging fiat money. “We were India’s first P2P exchange,” claims Gupta. Three months after launching the platform, in June 2018, CoinDCX raised $3 million in Series A funding from Bain Capital in the US.

    Other exchanges active in India at the time, including CoinDelta and CoinX, weren’t as lucky. Their trades dried up and investors vanished, forcing them to shut shop. Zebpay, one of the more popular crypto platforms, chose to fold operations in India and relaunch in Malta where crypto regulations were clearer. “The banking system was the lifeline of these exchanges. Imagine a stock exchange operating without banking services,” says Jaideep Reddy, a technology lawyer at Nishith Desai Associates.

    Crypto supporters fought back. They challenged the RBI’s move with a lawsuit in the Supreme Court and won respite in March 2020 after a two-year battle. The apex court overturned the ban and banks were allowed to partake in cryptocurrency dealings.
    nischal shetty

    CoinDCX’s 1.2 lakh user base prior to March 2020 has been growing 10x every day since the banking ban was lifted, claims Gupta. And trading volumes have grown by 47 percent in the three months to June 2020. It also picked up another $2.5 million in funding led by Polychain Capital and Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency giant Coinbase, in May 2020.
    WazirX, another Mumbai-based cryptocurrency exchange that was acquired by Binance, a large Mauritius-based exchange, in November 2019, saw trading volumes go up by more than 50 percent in the last four to five months to hit $60 to 70 million a month, says co-founder and CEO Nishchal Shetty.

    Globally too, the monthly trading volume between the Indian rupee and bitcoin more than doubled between March and August on Paxful, a major US-based cryptocurrency trading platform. The total trading volume in March was equivalent to $3.99 million, while in August it was $10.51 million, according to, a cryptocurrency information website.

    “It’s clear that the demand is there,” says Hershel Mehta, an early stage investor at Mumbai-based Mehta Ventures, which invested in CoinDCX. “When you have a new asset class [bitcoin] that has over doubled in the past two years and sees rapid growth and liquidity, you’re going to see demand.”

    Not only did the lifting of the RBI’s banking ban help in upping demand, but the pandemic also played its part, says WazirX’s Shetty. For one, salary cuts and job losses have prompted people to look for other income-generating avenues. Second, the lockdown has given them the time they previously never had to understand how cryptocurrencies work and how they can trade in them.

    Not only did investors get a shot in the arm since the ban was lifted but so did crypto entrepreneurs. A handful of businesses have sprouted over the last five months. Bengaluru-based Tradehorn, for example, went live with its P2P exchange in June 2020. “We’ve been looking at this space since 2015, but there hasn’t been any clarity in regulation. Once the Supreme Court verdict was out in April, we started drawing up our plans,” says Rahul Vinakiya, founder and CEO. Already the platform has 100,000 users and completes ₹10,000 worth of trades per day.

    While Tradehorn currently operates its own exchange, over the next two to three months, users will be able to trade on multiple exchanges using the platform. “The benefit is that users needn’t register and complete their KYC on every exchange. They can just do it on our platform and trade on any platform they like,” explains Vinakiya.

    akshay agarwal

    Similarly, Ashish Singhal launched CoinSwitch in 2017 when he realised that cryptocurrency prices differ from one platform to another. The Singapore-based, Sequoia-backed startup aggregates various exchanges which allows investors to compare crypto prices across platforms before making a purchase or sale. In June, at the height of the pandemic, Singhal decided to launch operations in India focusing on retail investors. “When the banking ban was lifted, we noticed there was a large unserved population of retail investors in the country. There was nothing that offered them a Swiggy or Uber kind of one-click experience when it came to cryptocurrencies,” he says. CoinSwitch Kuber, the Indian entity, set out to do that and within 100 days, it amassed 250,000 users and achieved trading volumes of $30 million per month. Seventy percent of these users are first-time crypto investors; 60 percent come from Tier 2 and Tier 3 cities and are under the age of 25. “Investing has always been a social experience. People buy stocks basis what people recommend otherwise there is a feeling of missing out,” says Singhal. “That same phenomenon has brought users from these cities into cryptocurrencies.” In the next three months he aims to reach one million users and grow volumes to $300 million.

    Institutional interest in digital assets is also on the rise. Akshay Aggarwal, founder of Blockchained India, a 20,000-strong community of crypto enthusiasts that played a pivotal role in the lifting of the RBI banking ban through road shows and awareness campaigns, says Motilal Oswal contacted him to learn more about the space. “Cryptocurrencies are an attractive avenue for wealth management funds and they want to understand what they can offer their clients,” says Aggarwal. US-based companies are also eyeing the Indian market, he says. Just recently, he was involved in getting The OAN, a US-based blockchain company, to invest $10,000 in three idea-stage Indian crypto companies.  

     Surprisingly, the Indian crypto space is abuzz despite fears that a new law banning or severely restricting trade in cryptocurrencies is being mulled over by bureaucrats. The draft regulation bill is likely to be submitted to Parliament in November. So what explains this optimism, despite the looming uncertainty?

    “The regulatory environment concerns me,” concedes CoinSwitch’s Singhal. “But news of the ban has been around for the last six months. I’m hopeful the government is looking at this from the right angle and will realise the contribution this industry is making to the economy,” he says. According to industry body Nasscom, which has been pushing for regulatory clarity on cryptocurrencies, India stands to lose much if a “proactive, consultative approach” is not taken. A ban would inhibit new applications and solutions from being deployed, would discourage tech startups and lead to job losses, it said. Bahrain, for instance, has been inviting Indian crypto players to set up base in the country by offering them various incentives and regulatory leeway. Consequently, India stands to lose billions of dollars worth of investment that the crypto sector can potentially attract.

    Still others have a “plan B” in place. While Vinakiya of Tradehorn has been taking advantage of the opportunity in the Indian market, he concedes he is “mainly focussed on the global market”, especially Africa. “It’s a hedge against a sudden, arbitrary ban,” he says.

    Meanwhile, CoinDCX’s Gupta has a long-term view of the market. “You can ignore cryptocurrencies today, but you can’t ignore them forever. The future is bright.” Currently he says 0.4 percent of India’s population or 52 lakh people trade in cryptocurrencies. Through CoinDCX’s educational platform DCXLearn to which Gupta has committed $1.3 million, he hopes to “get 50 crore Indians into crypto”. And he’s making it easy for them to do so through the “sachetisation of cryptocurrency”. His platform allows users to buy bitcoins for as low as ₹10 to start out with, going up to ₹100, ₹500 and ₹1,000. “The point is to learn while you trade,” he says.

    Says Reddy of Nishith Desai, “There’s no clarity that there will be a ban. It’s not a foregone conclusion. It’s merely the recommendation of a committee consisting of four officials. A ban would make India an outlier globally. Also, if a ban is decided upon, it is subject to the parliamentary process, implementation hurdles, and constitutional challenge.” Besides, banning the trade will only push it underground. “You can ban businesses, but you can’t ban people from trading in crypto,” says one industry insider.

    Others believe India might follow the route taken by other Asian countries. China, for instance, initially banned cryptocurrency trades and initial coin offerings in 2017, but has since reversed its stance. Similarly, Singapore and Japan had unregulated markets until the governments saw the potential of digital currencies. Today Singapore is creating new cryptocurrency indexes with the goal of setting the pricing standard for trading bitcoin and ethereum during Asia hours. “We risk being left behind if we don’t act fast,” says the insider quoted above.

    Nasscom has called upon the Securities and Exchange Board of India to create a “regulatory sandbox” or a controlled testing environment for crypto firms, subject to certain regulatory relaxations. A well-established mechanism in several countries, a sandbox would give entrepreneurs a testing ground for their technologies and regulators the time to get up to speed with them. Says Gupta, “Cryptocurrencies are here to stay. It’s just a matter of time.”

    (This story appears in the 09 October, 2020 issue of Forbes India. You can buy our tablet version from To visit our Archives, click here.)


    Author: News Bureau

    Beginners Guide to Decentralized Crypto Exchanges

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