ForkDelta – Decentralized Ethereum Token Exchange
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One of the growing types of cryptocurrency exchanges is cryptocurrency specific trading platforms. Localbitcoins, for example, deals specifically with the trading of Bitcoins. Some exchanges like Etherdelta were opened to facilitate the trading of ethereum and ERC-20 tokens only.
However, Etherdelta failed to live up to the expectations of some of its customers after it was sold in mid-2017. Consequently, a group of traders developed a new exchange with the same outlook and services as Etherdelta and named it: ForkDelta. Being a new exchange, ForkDelta has not yet attracted enough adoption to record decent liquidity on some of its tokens. Its community is still growing and most traders are cautious when using the platform. Before you trade on the exchange, read the following ForkDelta exchange review.
What is ForkDelta?
ForkDelta is a decentralized exchange launched in 2017. It offers ERC20 tokens for trading activities and keeps adding new ones for free. It acts as an updated interface for EtherDelta’s smart contract with a development team. ForkDelta can be accessed by anyone and also offers a token listing option for free. It is a fork of EtherDelta but more coins have been listed since EtherDelta went into ICO. Zack Coburn launched the exchange in the summer of 2017.
Trading on ForkDelta
ForkDelta fees include Deposit fee, withdrawal fee, and trading fee. Trading on ForkDelta is carried out with the help of the smart contract behind it. 0.3% fee on the execution of orders with an additional small fee for signing transactions to the Ethereum network. The fee take, fee make and fee Rebate variables hold the fee percentages times one Ether coin. If any Ether is sent to ForkDelta with no function, the call will be returned to the sender. Fees are charged for signing transactions to the Ethereum network. The fees for signing transactions on the Ethereum network go to miners on the network.
Once you have an Ethereum wallet, you do not need to register at ForkDelta; it does not require any kind of verification.
Is ForkDelta safe?
ForkDelta functions like other exchanges; its business logic is defined and performed in a smart contract on the decentralized Ethereum blockchain. The Graphical User Interface of ForkDelta is created to let users interact with the current smart contract without dealing with the details of blockchain transactions with low-level. It has a resting order that consists of the price, volume, expiration time and signature. When a new resting order is created, an off-chain order book server gets broadcast. The major aim of storing resting orders off-chain is that an Ethereum transaction does not need to be created.
For orders to be submitted with on-chain transactions, ForkDelta has a backup mechanism for this. The backup mechanism makes it safe for users. It does not bank on a centralized party to keep user’s funds and enhance trades.
For customers, the trading interface of ForkDelta is not user-friendly, it lacks advanced features. Users have also complained that ForkDelta depends solely on a smart contract hosted on the Ethereum network, there is always delay in carrying out transactions when the network is clogged. Trading is also done against Ethereum and it only supports ERC20 token, this is not too good for users using this exchange. Trading on this platform is not instant and the margin trading is not available, every deal on ForkDelta is done with the use of the smart contract.
How to use ForkDelta?
Using this exchange requires a ForkDelta wallet and an account on the exchange. Link your Ethereum wallet such as the Ledger, MetaMask or MyetherWallet. After linking your account, follow the procedure below to make a trade:
Step 1: Deposit Funds
To deposit funds on the ForkDelta platform, go to the top left of the Deposit/withdraw/Transfer window and select Deposit. Select the number of tokens or Ethereum you would like to deposit. You will be asked to accept or sign the transaction you want to carry out. Once the transaction is sent, your funds are immediately deposited into the smart contract on the Ethereum network. When this has been completed, you will be able to trade on ForkDelta with the funds.
Step 2: Withdrawing Funds
To withdraw funds on this platform, you go to the top left of the Deposit/Withdraw/Transfer window, select withdraw and then choose the amount of Ethereum or tokens you want to withdraw into your Ethereum account. You will be asked to accept or sign the transaction. Once the transaction has been sent, your funds will be securely withdrawn into your Ethereum account.
Step 3: Paying for Gas
The fact that ForkDelta depends on the smart contract hosted on the Ethereum network, the speed of transactions is determined by the speed of the Ethereum network. The gas price for your transactions can be increased if you want your deposits, withdrawals, and trades to be carried outfaster. When the network is clumsy, transactions could take longer time.
Step 4: Selecting Tokens to Trade
To select a token, any ERC20 token that is available can be traded on the Ethereum network. In a drop-down near the upper left section of ForkDelta, you can find the listed tokens there. You are ready to place or take orders after funds have been placed in the smart contract. To create a buy or sell order, you will have to find the New Order section.
Then you select either buy or sell and enter the token amount you want to buy or sell, the due time, the price and you hit Buy/sell. You will be ordered to sign the transaction so that it can be sent to the order book. ForkDelta uses the signed order to carry out a trade utilizing the smart contract on the Ethereum network, once a taker for your order is found.
Step 4: Picking Buy and Sell Orders
To take an existing order, click on the order you want to take in the order book. A window would ask you to indicate the amount you want to take. You then hit the Buy/sell button, you will be asked to sign the transaction so that your trade would be sent to the smart contract. A transaction identification number and a link would be given to you by ForkDelta. This will help you to track your trading status by clicking the link.
Use My Transactions section and click the orders tab if you want to cancel an order, you will be asked to sign a transaction to cancel the order. An issue is filed by any member of the ForkDelta platform to request a token to be listed on ForkDelta. Information about the contract address, a link to the token issuer’s official website, a couple of sentences for token description, a link to an official page confirming the contract address and a link to a third party review would be included in the issue. Click the drop-down in the top right of ForkDelta trading exchange and click “Gas Price” at the bottom of the menu to change the default gas price.
Connecting a Ledger Wallet to the Platform
You can also use a ledger directly with ForkDelta, you only need to make sure that browser support and contract support are in your ledger. Doing that requires you to navigate to the Ethereum app on your ledger, go to settings and enable both browser support and contract support. Make sure your ledger is connected to your computer and then navigate to ForkDelta. Your ledger address appears in the account drop-down instantly.
ForkDelta as a decentralized exchange platform initially built as a fork of EtherDelta. The platform was developed after Etherdelta was sold to new owners who introduced questionable development decisions. As such, ForkDelta is really 100% like Etherdelta except that it was initially launched by different people. It is an open and fair platform for developers who are accessed and an open source codebase.
ForkDelta believes in open and direct means of communicating with the users. The platform does not charge fees for token listings and it lists most tokens of any exchange with new tokens added every day. Users have really complained about the speed of this platform, it is said to be extremely slow and hard to work with. The exchange may seem better than EtherDelta, but it’s important to be extremely careful noting that a lot of scam websites have been opened up and closed in the past.
On ForkDelta, you do not need to create an order several times, unlike EtherDelta. This exchange is not recommended for beginners as it is not simple to use. Other cryptocurrencies such as Bitcoin, Dash, Litecoin, Zcash or any non – ERC20 token cannot be found on this platform.
Pros of ForkDelta
- It allows trading Ether and Ethereum based tokens directly with other users.
- It does not bank on a centralized party to store user’s fund and enhance trade.
- It is very easy to access by anyone who has an Ethereum wallet.
- It does not charge fees for token listings.
Cons of ForkDelta
- Trading on this platform is not instant.
- It solely depends on the Ethereum network.
- It does not support fiat currencies.
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