The emergence of exchange platforms in the crypto world has been a major milestone, sparking excitement and joy among traders. However, as time went by, mixed feelings began to surface. This raises the big question: Why?
The main issue centers around privacy. As privacy concerns grew, the need for a private cryptocurrency arose, leading to the creation of Monero (XMR). Over the years, Monero has earned its reputation as one of the most privacy-focused cryptocurrencies on the market.
Yet, despite its appeal, Monero has faced adoption challenges. Major, well-known exchanges have been reluctant to list XMR, mainly due to concerns about the risks associated with listing a privacy-centric coin. This hesitation led to a scarcity of platforms where Monero could be freely traded.
However, the introduction of non-KYC platforms has helped fill this gap. These platforms allow users to trade Monero without the need for personal identification, solving a major hurdle for privacy-conscious traders. Despite this, finding legitimate non-KYC platforms has been a challenge, especially after the Shutdown of LocalMonero, a once-popular, well trusted peer-to-peer (P2P) exchange for XMR .
The Rise of Non-KYC PlatformsThe shutdown of LocalMonero created a void in the market, but fortunately, new platforms have stepped in to offer similar features and services. Platforms such as Haveno/Retoswap, OpenMonero, Bisq, Trocador, Bitvalve e.t.c… have emerged as one of the popular non-KYC exchanges for Monero. Walk along with me as I share my research with you.
Haveno/RetoswapHaveno, which has been around for just over a year, AKA Retoswap. It quickly gained recognition as a solid platform for buying and selling Monero, offering great P2P features. Additionally, it has a mobile app that’s worth trying out, though I haven’t had the chance to explore it myself.
However, Haveno has recently faced scrutiny over some serious security concerns. Notably, This is probably the platform with the highest liquidation amidst them all and it was discovered that the network operator holds two of the three multisig keys, giving them the ability to seize the entire order book at any time. This creates a centralization risk, as it could allow the operator to take both the market makers’ offers and all security deposits, which were previously 15% of the liquidity but have now been raised to 25%. This critical vulnerability raises concerns about the legitimacy of the platform, as outlined in a recent update on
(
https://monero.observer/woodser-releases-haveno-v1.2.0-mandatory-update/).
In short, Haveno carries a significant risk of liquidity centralization, which could result in a rug pull , either intentional or not. Might be something to look out for in the future. However, it’s a decent DEX for privacy trading.
Retoswap.com
OpenMoneroAnother platform in the same vein as Retoswap, OpenMonero has been operational for over a year and has earned praise for its safe and user-friendly design. It offers a wide range of payment options, much like LocalMonero. Unfortunately, OpenMonero’s reputation took a hit recently after a hack resulted in the loss of 78 XMR in vendor and user funds. One of the most interesting feature about OM unlike retoswap, they don’t require deposits to publish ads or receive trade requests, meaning it was intentionally built to reduce exit scam risks. Even in the event of a security incident, losses would be minimal and the team has ensured there is always enough liquidity to fully refund users if needed.
However, the hack raised serious concerns among its user base, though the platform’s admins have been working to refund the affected parties. As of now, 11 vendors have been reportedly reimbursed. Despite the hack, OpenMonero is still actively used and provides services, though its reputation remains somewhat damaged.
Openmonero.com
BisqFor those seeking a decentralized exchange, Bisq is a also an option. This platform supports P2P exchanges for Bitcoin, Monero, and other cryptocurrencies. Bisq has been around for a while and is known for offering excellent privacy and anonymity benefits. However, like any platform, it isn’t without its drawbacks. Users have raised concerns about its relatively low number of active traders, and users and also slower processing times, and premium fees that exceed those of KYC exchanges. Additionally, there have been fears about receiving “tinted” Bitcoin or payments linked to fraud, making some users wary. Despite these concerns, Bisq remains a decent platform for those who prioritize decentralization and privacy.
Bisq.network
If you found this research helpful, let me know in the comments section, and I’ll continue exploring more on this topic. Stay safe out there, and always prioritize privacy when dealing with crypto!
