Author: Tier Nolan 2016-08-08 09:56:24
Published on: 2016-08-08T09:56:24+00:00
In an email conversation, Matthew Roberts discussed the usage of centralized exchanges for speculative purposes. He stated that many users do not care about decentralization, security, or even the asset they are buying, but rather use these exchanges to enter and exit complex positions in milliseconds. Centralized exchanges also allow for limit orders, which cannot be executed with channels. However, using channels alongside a centralized exchange can provide the benefits of a distributed exchange. Channels allow instant funding while giving customers control over their funds. Even margin account holders appreciate the clarity of knowing which funds are under their control versus those held by the exchange. Using a 2 of 3 system where the customer, exchange, and third-party arbitration agency hold keys may be acceptable to the exchange if bitcoin funds are being used as collateral for a margin trade.
Updated on: 2023-06-11T19:18:04.174431+00:00