You are viewing a single comment's thread from:
RE: Why You Should Not Trade on Exchanges - Buy/Sell Tips by Charlie Shrem
Great question and I'm happy you brought this up! Where we get price discovery is a question we still struggle with in Bitcoin as well. I personally use index's that incorporate OTC rates like LocalBitcoins and Gemini.
Since Blocktrades, Shapeshift and Changelly trade on the exchanges and source their assets other ways, they set their rates. Their rates need to be good and competitive or else we will go elsewhere, like back to the exchanges.
At the end of the day, value is "What someone is willing to pay for it".
I would make the case that OTC rates are a truer indicator of price discovery than exchanges
the point is, you don't avoid the exchange market by using shapreshift but you do pay an extra fee of ca. 10%. These things make sense for small purchases and convenience. But you should always use exchanges when buying larger amounts.
Dear @charliesherm, we have a good article about trading process on simple instant exchanges, you are welcome to have a look: https://steemit.com/money/@changelly/network-fees-and-suggested-minimal-amounts