Local Coin Swap Review
By now, cryptocurrency trading is nothing new. A huge number of exchanges have popped up around the globe, with varying degrees of popularity and transparency. As more and more countries begin to take steps towards regulating the exchanges, the number will undoubtedly be whittled down.
Whilst the blockchain-based model of cryptocurrencies allows for user anonymity, improved safety and decentralization, there are a few aspects of the cryptocurrency exchanges that are reminiscent of traditional stock exchanges.
One of those is the long chain of action that needs to be taken in order to trade a coin or a token. Another one is the amount of money that is lost in the process, as various transaction fees are deducted. A third one is the risk of insider trading.
What is LocalCoinSwap?
The team behind LocalCoinSwap call their project “the most financially transparent exchange on the market.” How do they plan on accomplishing this? By putting the users of the platform in control.
The platform will be a peer-to-peer (P2P) cryptocurrency exchange, where users can match up with each other and trade directly. No more middlemen, no more excessive transaction fees, and deductions. Just one-to-one trading.
But it does not stop there. LocalCoinSwap aims to be a democratic platform, where the community can vote on any decision affecting the exchange. Furthermore, the platform will give no less than 100% of the profit it makes back to the users.
How does it work?
With hundreds of cryptocurrency exchanges around the world. any newcomer to the market would have to have some pretty convincing USPs to fly. LocalCoinSwap has a few of those.
The first USP is that it will be much cheaper than current exchanges, by cutting out the intermediaries. Users will have to facilitate the P2P trading themselves, which will inevitably make it a cheaper system.
Secondly, there will virtually no limit to what can be traded on the platform. Many existing exchanges and P2P systems are restricted by the number of cryptocurrencies that can be used and traded on them. LocalCoinSwap will support more kinds of cryptocurrencies (and fiat money) than any other platform of its kind.
Finally, there will also be ample opportunity for ICO creators to raise funds on the LocalCoinSwap platform. This will make it easier for anyone interested in an ICO to invest in new and exciting projects, using whichever cryptocurrency the prefer.
What problems are solved?
To summarise, the LocalCoinSwap project aims to solve the following problems currently facing the cryptocurrency trading community:
- Centralised exchanges make it difficult for new traders to register without giving away personal information
- Centralised exchanges are subject to various local regulations affecting traders
- Existing exchanges are limited in their capabilities when it comes to the number of cryptocurrencies facilitated
- Existing exchanges incur too many fees on traders
- Existing exchanges don’t share their profits with the users
- Existing exchanges have too much in common with traditional stock exchanges, including lack of transparency and insider trading
What do you think of P2P exchange? Leave your comments below!
bitcointalk username: Ico Friends