What is EtherDelta?
EtherDelta is a decentralized exchange that runs on the Ethereum blockchain. It is the first-place people go when looking to trade newly released Ethereum based tokens. Unfortunately, it can be hard for users to navigate and work with. You will need an Ethereum wallet before trading on EtherDelta, so check out this post if you need help setting one up!
Here are the 4 steps to show you the basic process of what you are doing when using EtherDelta.
- Connect wallet to EtherDelta
- Deposit funds from connected wallet into the EtherDelta smart contract
- Make your trade(s)
- Withdraw funds from the EtherDelta smart contract to your connected wallet
As always, be very careful when making transactions and double check everything before submitting any transactions! The guide below is also geared towards using MetaMask, so I would highly recommend grabbing the MetaMask extension for Chrome if you don’t have it yet. Now head on over here to EtherDelta.
Buying an Ethereum based token using EtherDelta
1. Connect your wallet to EtherDelta. If using MetaMask, the account should automatically be picked up (top screenshot). If importing an account, use the address and private key of your wallet (bottom screenshot). You could create a new account, or use a ledger S, but I will save those for another post.
2. Now that you are connected, check the ‘Balance’ section to see that it correctly shows your wallet’s holdings. Notice I am only focused on the ‘Wallet’ column at this point, because this column is pulling the balances of the wallet I connected in step 1. I do not have any PPT, so the top is 0, and I have 0.009 ETH so that’s what the bottom shows.
3. Now that our wallet is connected, we need to deposit funds into the EtherDelta smart contract. Make sure you are on the deposit tab, enter in the amount of ETH you want to deposit, and then click “Deposit”. Don’t worry, you can pull this ETH back out, so it doesn’t have to be exactly what you want to trade with.
4. MetaMask will prompt you to submit the transaction, double check the amounts and click “Submit”.
5. You should receive a confirmation pop-up that gives a link to watch the transaction.
6. The amount under the “EtherDelta” column should now show the amount you just sent, and the amount under “Wallet” should have decreased by that amount. As you can see in my screenshot, I now have 0.005 ETH in the EtherDelta smart contract.
7. Now choose the token you want to buy from the drop-down list. In this example, I have chosen SNGLS.
8. Now you have 2 options to buy. You can create a new buy order in the “New Order” section, or you can click one of the sell orders in the top half of the “Order Book” section.
9. If you:
a. Clicked a sell order from the top half, you will see a pop-up like the one below. Change the amount of the token if you need to and then click “Buy”. MetaMask will pop up again to confirm the transaction, so click “Submit”.
b. Entered a new buy order, make sure you are on the “Buy” tab and then fill out the fields. The “Expires” field represents how many blocks are mined on the Ethereum blockchain before the order expires. In my example, I am wanting to buy 100 SNGLS tokens for a total of 0.040 ETH. This order is set to expire in 10,000 blocks.
10. For this post I went the quick route and just clicked someones sell order (step 9a). I can see the trade in the “My Transactions” section.
11. The “Balance” section now shows 5 under the EtherDelta column for SNGLS and 0.003 for ETH.
12. Now we need to withdraw our SNGLS from the EtherDelta smart contract into our connected wallet. Go to the “Withdraw” tab, enter the amount you want to withdraw, and then click the “withdraw” button. MetaMask will ask to confirm, so click “Submit”.
13. Now my “Wallet” balance shows the 5 SNGLS and the EtherDelta balance shows 0 SNGLS. I can repeat step 12 with ETH to withdraw that last 0.003 to my wallet as well.
That’s it. I can now go to EtherScan or MEW and check out my balance of SNGLS tokens. Check out this post on how to check your balance with MEW if you are not familiar with it. The flow is straight forward as shown by the 4 simple steps at the beginning. It’s the interface that makes the actual process a little more difficult. Once the interface is upgraded it should be a much smoother process.
Please note that I did not cover the “Transfer” tab or some of the other areas. This guide was meant to show a path of least resistance to buying a token on EtherDelta. There will be more guides in the future on the other parts of EtherDelta so be sure to subscribe!