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cointastical / P2P-Trading-Exchanges

Person-to-Person bitcoin Trading Exchanges
https://cointastical.github.io/P2P-Trading-Exchanges
Creative Commons Zero v1.0 Universal
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Update README.md #22

Open 6feferonka9 opened 4 months ago

6feferonka9 commented 4 months ago

Fixes and added a new exchange

cointastical commented 3 months ago

What causes you to believe that LocalCoinSwap is custodial?

https://localcoinswap.com/learn/custodial-vs-non-custodial

6feferonka9 commented 3 months ago

Hello, it is because they do not explain how they actually implement non-custodial solution.

If you use localcoinswap.com, to sell, you first need to send BTC to "wallet" that is generated on their side and it seems to be in their full custody. After, when you have a trade, the amount of the trade is deducted from this "wallet" they generated for you.

I don't know would they make this non-custodial. Maybe they do, but I think there should be more transparency on their side. I once asked them about this, but I got no response. The article provided by you is just an explanation of differences.

This article provides more insight: https://github.com/LocalCoinSwap/bitcoin-trading-scripts

But, if you can get unencrypted private keys in their admin panel, just with one click, they must store it somewhere on their side.

It could be the trade itself is implemented as "non-custodial" but they do have access to your funds, as far as my research goes.