⁉️FAQs

What is a decentralised order book?

A decentralised order book is a digital platform for buying and selling assets, such as cryptocurrencies or tokens, not controlled by any single entity or organisation. Instead, it is maintained and operated by a network of participants, usually using blockchain technology.

How does a decentralised order book work?

In a decentralised order book, users can place buy or sell orders for a particular asset at a specific price. These orders are recorded on the blockchain and stored in the order book. When a match is found between a buy and sell order, the trade is executed, and the asset is transferred from the seller to the buyer.

What are the benefits of using a decentralised order book?

There are several benefits to using a decentralised order book, including:

Increased security: Because a single entity does not control a decentralised order book, it is less vulnerable to hacking or tampering.

Greater transparency: All orders and trades are recorded on the blockchain, making it easy to see the entire history of the order book.

Reduced fees: Because decentralised order books do not require intermediaries to facilitate trades, costs are typically lower than those of traditional exchanges.

What are the risks of using a decentralised order book? There are also risks to using a decentralised order book, including:

Volatility: The prices of assets on a decentralised order book can be more volatile than those on traditional exchanges, as there is often less liquidity.

How do I get started with a decentralised order book?

To get started with a decentralised order book, you will need to set up a digital wallet to store your assets and connect them to the order book. You will also need to buy some help, either with fiat currency or exchanging them for other investments. Once you have assets in your wallet, you can start placing buy or sell orders on the order book.

Can I place both buy and sell orders on a decentralised order book?

You can place buy and sell orders on a decentralised order book. When you place a buy order, you indicate that you want to purchase a particular asset at a specific price. When you place a sell order, you say you want to sell an individual asset at a particular price. If a match is found between a buy and sell order, the trade will be executed, and the purchase will be transferred from the seller to the buyer.

Can I cancel an order on a decentralised order book?

It depends on the specific decentralised order book you are using. Some decentralised order books allow users to cancel orders that have not yet been filled, while others do not. Before you place an order, you'll need to familiarise yourself with the specific policies of the decentralised order book you are using.

Are there fees associated with using a decentralised order book?

Yes, most decentralised order books charge fees for placing and executing orders. These fees may be based on the size of the order, the type of asset being traded, or other factors. Before you place an order, you'll need to familiarise yourself with the fees associated with using a particular decentralised order book.

Is it safe to use a decentralised order book?

Decentralised order books can be more secure than traditional exchanges because they are not controlled by a single entity and are powered by blockchain technology, which makes them resistant to tampering. However, it is always important to be cautious when trading any asset and to carefully research the decentralised order book you use before placing an order.

Can I use a decentralised order book to trade any asset?

The assets that can be sold on a decentralised order book will depend on the specific platform you are using. Some decentralised order books only allow the trading of cryptocurrencies, while others may also support trading tokens or other digital assets. Before you place an order, you'll need to familiarise yourself with the help that can be traded on a particular decentralised order book.

How do I know the price of an asset on a decentralised order book?

The supply and demand for that asset determine the purchase price on a decentralised order book. The price will tend to increase when there are more buyers than sellers. When there are more sellers than buyers, the price will tend to decrease. The current price of an asset on a decentralised order book can typically be found by looking at the order book or b using a price ticker.

Can I trade with anonymity on a decentralised order book?

The level of anonymity provided by a decentralised order book will depend on the specific platform you are using. Some decentralised order books may require users to supply personal identification to trade, while others may allow anonymous trading. Before you place an order, you'll need to familiarise yourself with the specific policies of the decentralised order book you are using.

How do I know if a decentralised order book is reputable?

There are several factors to consider when evaluating the reputation of a decentralised order book, including:

Security measures: Look for decentralised order books with solid security measures in place to protect against hacks and other types of tampering.

User reviews: Read reviews and ratings from other users to get a sense of their experiences with the decentralised order book.

Regulatory compliance: Some decentralised order books may be subject to regulatory oversight, which can provide additional protection for users.

Can I use a decentralised order book from any location?

In general, decentralised order books can be accessed from anywhere with an internet connection. However, knowing about any regulatory restrictions or limitations that may apply to using a decentralised order book in your location is essential.

Are there any limits on the number of assets I can trade on a decentralised order book?

The limits on the number of assets you can trade on a decentralised order book will depend on the specific platform you are using. Some decentralised order books may have minimum or maximum trade limits, while others may not. Before you place an order, you'll need to be familiarised with the policies of the decentralised order book you are using.