Pages

Wednesday, January 27, 2021

Why are so many exchanges in existence?

 Why are so many exchanges in existence?


Each exchange acts as an intermediary, arbiter for the liquidation of crypto assets, namely coins. They charge transaction fees, ranging from 0.1 to 0.3% for each matched order. Thus, with a trading volume of 100 million USD, the floor will receive a fee of 100 000 - 300 000 USD per day. This is a fatty piece of cake that any tycoon wants to own.


At the same time, technically, establishing a website with the function of electronic money transactions is not too difficult for professional IT teams around the globe today.


Lastly is the plan to develop the community of traders own traders on each floor. If there is a strategy and initial investment that is large and reasonable enough, it is very feasible to build a community of their own for their exchange.


Common flaws of the spontaneous exchanges


There is no shortage of exchanges that have opened up with poor operating thinking and operating methods, taking advantage of the loose and ambiguous regulatory framework in some countries. After the time of Binance's success, many exchange projects were sprung up, but most of them were just images, canvas, no professionalism, even all the transactions that occurred on the floor were virtual orders created by the exchange's owner.


Factors to consider when considering an exchange are corporate reputation, its license, its number of user communities, and its high technicality. All of the above information should be transparent and can be checked on public portals. 


It is not excluded that the broker creates virtual indicators to deceive inexperienced traders, but over the course of several months of operation, the needle in the wrap will also reveal, basic weaknesses like withdraw orders. slow, low volume, command error when the volume is large at the same time will appear.


Is investing in the exchange and its own coin an attractive option?


The community has seen a strong breakout of Binance, rising to become a reputable cryptocurrency exchange and has the largest trading volume in the world. Especially with the growth of the community, Binance has released its own coin, BNB. And the day after being known to investors, BNB rose from 0.1 USD to the highest level to 45 USD, which has increased 450 times. Of course, that helps investors who own BNB reap unbelievable super-profits


Or a not too prominent exchange like OKEx, also issued OKB coin with a peak price of nearly 10 USD, up nearly 10 times compared to the lowest price.


Those are just 2 typical examples among hundreds of exchanges with good foundations and market strategies, which have affirmed their reputation in the world. One of the fairly safe investment options in the crypto market.


And along with the trend of shifting capital flows from the traditional financial market, technology organizations, in turn, develop their own exchange projects for different communities, which promises to bring a period of time. Great prospect in a good time for investors. 


An example that can be mentioned at the moment is the Blubitex exchange, with a UK license and a thriving community in Southeast Asia from the very beginning with nearly 60,000 members. The exchange has also launched its own coin under the name BBE, which is offered for sale by the IEO and is welcomed by the community, hoping to get a big profit boost if it can prove the long-term stability of the floor in this market. 


Overall, investing and well-established exchanges with their own coins is still a good choice in the era of the digital finance boom. However, please equip yourself with good knowledge and have a vision, solid enough to analyze and make the best decision for yourself.


If you are looking more information about Bitcoin, Exchange visit tap chi so

8 comments: