VDollar Review 2021 - Is It Safe?
What Is VDollar?
VDollar is the US-based cryptocurrency contracts exchange. The company VDollar Exchange LTD is registered in Colorado, USA. More than that, the company has the MSB (Money Services Business) registration and is under the US Financial Crimes Enforcement Network. It means that the platform is legit and is subjected to regular audits.
The VDollar ecosystem has three components (each one has its own website): an exchange (vdollar.io), a crypto wallet, and a cryptocurrency — all of the same name. VDollar's motto and main working principle read "trading is mining". In practice, it means that all the transaction fees collected by VDollar are sent to the USDT Reserve Pool. These fees converted to Tether serve as an underlying asset for the network. VDollar coins are pegged to the Reserve Pool. Please note that trading mining doesn't have much common with mining via processors or ASIC miners. You don't have to mint coins or crack math puzzles via a mining rig of 6 GPUs. Coins are emitted via trading fees you pay. That's it.
According to the project's white paper, in the first issuance, 4.5 million VDollars will be released. In the second phase, there will be issued 2.25 million, and so on. In general, 10 million VDollars will be issued and every following phase will have as twice as smaller an issuance cap as the previous. This scheme allows you to earn money while trading as the trading fees you pay will gain value and you will be able to participate in the company's IPO and earn some money. The more you trade the bigger your share. The info about the destination of the fees you pay can be verified as the addresses are publicly available. For the first issuance, 1 VDollar is mined when you pay fees equivalent to 1 USDT. The USDT equivalent of each VDollar will be increasing in each phase. In the second phase, each VDollar is going to cost 2 USDT, etc. The value will correspond with the smaller issuance of coins.
At any given moment, VDollar users who hold coins can redeem them from the USDT Reserve Pool at a 1:1 rate (VDollar : Tether). The action doesn't require any conditions.
Governance on the platform is executed by 32 super representatives. They are elected via voting. Super representatives receive 25% of VDollars mined by their subordinate users. Such a reward serves as a serious incentive for users to strive to become super representatives. If you want to become a super representative you should apply for it. The application should reveal the size of your user base. Then, through the voting, the most voted candidates make into super reps. The voting rights are granted to those who have passed the KYC check and have money on the balance. The voting takes 24 hours.
At the end of every issuance phase, the 8 super representatives with the smallest mining volume are excluded from the team of super reps. The voting preceding a new phase is aimed to replace these 8 super representatives with new ones. VDollar super representatives are allowed to participate as voters in elections on several platforms.
VDollar.io is a multi-functional cryptocurrency exchange. The exchange allows trading USDT against over 20 cryptocurrencies including VDollar (VD), Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), XRP, Chainlink (LINK), Bitcoin Cash (BCH), Cardano (ADA), DASH, Litecoin (LTC), and many others. The exchange displays a candlestick chart. Many indicators and tools are supported so you can analyze the market data thoroughly. The market data is displayed in real-time.
Apart from standard market orders, you can post limit orders to avoid losses in cases when the price is moving in the direction opposite to the expected one. The regular exchange features are not all that VDollar exchange can offer. Other features are trading mining (which we have already described as the defining feature of the project), OTC trading, margin trading, and instant swaps.
OTC trading desk allows you to buy or sell cryptocurrencies outside of the order book. Such deals are not reflected in the order books and don't affect the trading volume of the platform. It is a good possibility to avoid price fluctuations as you buy or sell at the rate specified in the offer. As of July 2021, there are only 3 cryptocurrencies supported on the OTC desk: Bitcoin, Ethereum, and Tether. All of them could be bought for fiat money. VDollar supports around 15 national currencies. The supported payment methods are bank cards, Alipay, and WeChat. The feature is available in 17 countries. You can check the list in the Countries menu. Note that tools regular for trading via exchange are not available while OTC trading. It's more like a bulletin board where you can learn that someone is selling or buying this or that currency at the specified price.
In the Swaps tab, you can trade contracts with cryptocurrencies where crypto coins are used as underlying assets. USDT is used as the settlement currency. In the Swaps tab, you can use limit and stop orders. Available contracts are BTC/USD, ETH/USD, BTC/USDT, ETH/USDT, FIL/USDT, and DOGE/USDT. Netting and hedge modes are supported. 20x leverage is available for traders in the Swaps section.
The margin tab provides an opportunity for leveraged trading. 3x leverage is available for Bitcoin, Ethereum, Filecoin, Dogecoin, Bitcoin Cash, Tronix, EOS, Litecoin, Shiba Inu, and yearn.finance. 3x means that using this leverage you can boost your profits and get three times more than without margin trading. However, you should be ready to face bigger risks. Margin trading is also a chance of losing money. It is recommended that only experienced traders with a good understanding of the market should try using leveraged trading.
As for trading fees, VDollar charges users 0.2%. Unlike many exchanges, VDollar doesn't offer discounted fees for makers. By some accounts, withdrawal fees slightly exceed 0.0002 BTC.
Swap transactions will cost you less money. That's where makers are favored over takers. Market makers (or those who place a limit order and make liquidity) are charged with a 0.04% fee while takers pay 0.06%.
Is VDollar Safe?
Safety is a crucial characteristic of any cryptocurrency-related platform. Many cybercriminals exploit the vulnerabilities of exchanges, wallets, and other platforms to steal users' money and data.
We have already mentioned that VDollar is a licensed platform as it's registered as MSB and is accountable to the US Financial Crimes Enforcement Network. It means that the company behind VDollar cannot jeopardize the data and funds of its users. More than that, it means that VDollar is not a scam enterprise. It is hard for a cryptocurrency exchange to get registered in the US. The fact that VDollar managed to do that means that it's a legit and trustworthy platform.
Good project, low transaction fees