Cryptocurrency exchanges are online platforms where one can buy, sell, or trade cryptocurrencies. The aim of crypto exchanges is to connect buyers and sellers by creating a cycle of supply and demand in one place.
However, almost every exchange is prone to hacking, has privacy issues, and users could end up losing their funds. Non-custodial exchange services look to overcome these shortcomings of cryptocurrency exchanges.
Online cryptocurrency exchanges can be categorized into two types: centralized and decentralized.
Even though they make it easier for everyday users to buy and sell digital assets with their interactive interface, one major downside of such exchanges is that they do not give users full control of their cryptocurrencies. The private keys of your wallets are held with the exchanges, so if they were to get hacked, your funds will be lost.
Generally, people prefer CEX over a DEX because of a number of reasons like liquidity, volume, user-friendly platforms, etc. Top centralized exchanges like Bitfinex, Bittrex, Coinbase, Kraken, Binance, Huobi have 99% of the transaction volume and were the first to exist in the market even before the idea of decentralized exchanges came up, so they have an upper hand of being in the market since inception.
Drawbacks of cryptocurrency exchanges
Cryptocurrency exchanges come with their own set of disadvantages, the major drawbacks include:
Privacy: Exchanges store all your information such as IP address, email, and details about your transactions which basically doesn’t leave behind much privacy for you.
Loss of funds: The majority of the exchanges have had a story of getting hacked and users losing their hard-earned money. The bigger picture is explained in detail in the next paragraph.
The cumulative money lost from just the top three biggest exchange hacks in the last 7 years is over 1 Billion US Dollars, now imagine what the figures would look like if we consider all the hacks. Below is a picture that summarizes the money lost in all major hacks until April 2018.
The world’s biggest cryptocurrency exchange in terms of daily volume, Binance, which is known for its innovative products and strong leadership went through a security breach in May 2019 which resulted in 7000 Bitcoins being stolen from their platform. Even though all the affected customers were reimbursed in this case, it shows how vulnerable it is to leave your money on exchanges.
“Your keys, your Bitcoin. Not your keys, not your Bitcoin.’’
Also, trading on exchanges is not only risky but also a tedious task. In order for you to trade on a DEX, you need to enter your private keys or Keystore or use MetaMask; the latter is the most recommended method. Then you need to send your digital currency from your private wallet to Metamask and then to DEX. Every transaction has to be signed by you. Probably the most frustrating part of using this type of exchange is you have to wait until someone buys or sells so that your order fills, which can take a long time depending on the liquidity on that exchange.
CEXs solve this waiting problem by using market makers, but again, users are required to log in and perform authentication to trade and confirm by email to make every withdrawal. On top of all this, all exchanges require you to do KYC to comply with local regulations, which can take days.
Instant crypto exchange services that require no registration and perform your transactions fast may be the solution. These platforms give you basically as many options as any regular exchange – but overcome their shortcomings.
So what’s the best place to trade crypto?
Of course, there is no ideal platform to trade crypto out there. ChangeNOW has its own drawbacks – they have no crypto-to-fiat options available, and fiat-to-crypto exchanges are a bit pricy. Many traders consider instant exchange services the best place to trade crypto with security and convenience – but we recommend you doing your own research to choose the best platform that will fit your needs.
- After Bitcoin’s near 50 percent drop in March, exchanges lost institutional volume and reveal over 100,000 BTC withdrawals
- Cryptocurrency exchange app: Why should you use it? What are its benefits?
- Total Cryptocurrency Market Cap Adds $20 Billion In Less Than 24 Hours
- Cryptocurrency Trading Surges in Malaysia as Lockdown Cripples Economy | Regulation Bitcoin News
- BitMEX forced to close doors in Japan due to amendments in regulation
After Bitcoin’s near 50 percent drop in March, exchanges lost institutional volume and reveal over 100,000 BTC withdrawals
Cryptocurrency exchanges and retail traders alike felt the effects of Bitcoin’s sudden fall in March 2020. While the latter may have lost significant capital on long positions, the drop has compelled exchanges to exist in an institution-less and low-volume environment.
On March 12, Bitcoin traders witnessed what was the largest single-day drop in over seven years, with the digital currency closing at $4,400 on March 13 after trading at $7,800 the day prior as per data on CryptoSlate.
Several exchanges went into involuntary “system overload” which prevented traders from closing positions and realizing millions of dollars in losses. Selling activity was driven by both trading bots and manual traders, but few exchanges had system capacity to accommodate requests.
BitMEX, one of the most popular and liquid exchanges, shut down for over 30 minutes and was widely-criticized on social forums. The exchange later cited two distributed-denial-of-service (DDoS) attacks as the reason for the outrage.
Crypto exchange Huobi revealed over 10,000 users were liquidated on their long positions overnight.
The event’s aftermath saw outflows of $700 million in Bitcoin from BitMEX, along with reduced volumes across rival cryptocurrency exchanges even as prices have corrected fully since. Without divulging specifics, Huobi and OKEx reported significant outflows but confirmed an average drop of 60 percent in trading volume to Bloomberg.
Ciara Sun of Huobi noted:
“It hurts the whole ecosystem. Some customers, when they got liquidated, they definitely need time. Others will not come back.”
At the time of writing, Bitcoin trades slightly above $7,700, seemingly making up for March’s losses if traders remained invested.
The drop followed a 300 point drop in the S&P 500 index, a popular investment vehicle that tracks the financial growth of the top-500 U.S. companies. The index is popularly considered a marker of the broader economy, with high prices indicating good economic health and vice-versa.
Traditional markets make use of “circuit breakers,” an automatic 15-minute pause in trading once asset prices fall below 7 percent. If prices continue to drop over 20 percent, trading is fully halted for the session.
Breakers ensure drastic drops, like those seen in cryptocurrency, are avoided, and traders are given time to reflect on the activity. But cryptocurrency proponents are not fully convinced of the idea.
Binance’s Changpeng Zhao said of using breakers:
Hello? Circuit breakers can only be used on a fully monopolistic exchange.
Free market doesn’t work that way. #btc is traded on many exchanges. https://t.co/cYSYP5exBY
— CZ Binance 🔶🔶🔶 (@cz_binance) March 11, 2020
The “free” market idea is provided as an explanation to not install trading halts. However, Huobi’s not buying that. On March 18, days after the infamous fall, the exchange introduced a protocol to prevent the rapid liquidation of long/short positions when volatility strikes.
Cover Photo by Ryan Oswick on Unsplash
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Post-mining his first bitcoins in 2012, there was no looking back for Shaurya Malwa. After graduating in business from the University of Wolverhampton, Shaurya ventured straight into the world of cryptocurrency and blockchain. Using a hard-hitting approach to article writing and crypto-trading, he finds his true self in the world of decentralized ideologies. When not writing, Shaurya builds his culinary skills and trades the big three cryptocurrencies.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
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Author: AuthorShaurya Malwa Twitter LinkedIn
Cryptocurrency exchange app: Why should you use it? What are its benefits?
The world is fast moving into areas that were earlier thought to be impossible. When we say currency, we presume it to be USD, but today most widely accepted currencies are cryptocurrency. Widely used digital currency are ethereum, bitcoin,litecoin, and many more. Bitcoin currency is broadly supported. Visit a local bitcoin script, and you will have exchange with relevant features, services and are fully supported by security options. The local bitcoin scripts are easy to navigate and have a rich user interface. As trading volumes improve, there are in-built capabilities to expand its speed and functionality. The application has minimal steps involved in its usage. These are profile creation, Linking of accounts, coin pairs, and then exchange.
Perks of using the cryptocurrency exchange Platform:
Exchange calculator: The local bitcoin script has an in-built calculator that gives immediate results for cryptocurrency conversion. Customers can use this in cryptocurrencies exchanges.
Be updated: The market trend of most of the popularly used cryptocurrencies are updated regularly along with the graph to represent the current business for it. It assists users in analyzing the trends and making appropriate exchanges.
Extensive view: The transaction is presented graphically in the dashboard with suggestions for improvement. It is also a platform to keep track of the business dealings.
Prompt service: If the customers need any technical assistance or any other assistance, they can reach the customer executive 24/7.
Quick exchanges: The exchanges in the platform are fast and almost immediate. The transactions based on credit/debit cards are prompt, but the deal with the bank supports 2–4 days business days of support.
Security: There are multiple layers of protection to secure the transaction, safeguard the user’s details and business dealings history from third parties and hackers.
Authentication: Whenever your broker logins from another platform, an email will be sent for a check.
The cryptocurrency exchange platform is widely used owing to its security and simplicity. The business dealings do not involve government intervention, and users need not maintain paperwork for the transaction. The transaction gets stored digitally in the application. The Local bitcoin clone PHP script is highly compatible, and it makes the transaction process efficient. The market trend features are helpful for the customers for the investments.
Author: jack richer
Total Cryptocurrency Market Cap Adds $20 Billion In Less Than 24 Hours
Bitcoin and the rest of the cryptocurrency space is currently a sea of green after today’s rally added over $20 billion in market cap to the total cryptocurrency market.
In less than 24 hours, the total market cap across all cryptocurrencies combined, grew by over 10% thanks to a massive surge from Bitcoin and continued growth in a variety of altcoins.
The hype surrounding Bitcoin’s upcoming halving in just two weeks may have pre-emptively sparked a new bull market, as the latest rally has added over $20 billion and counting to the overall total cryptocurrency market cap.
Bitcoin has been on a strong, upward trajectory after bouncing from the lows around $4,000 last month. The Black Thursday crash send Bitcoin tumbling and crushed the hopes for a pre-halving rally.
Over the last seven weeks, however, Bitcoin has been on a tear. The last seven weekly price candles have been green, occurring for the first time since the 2017 crypto bubble.
Today, the asset exploded above $8,700 and carried the rest of the crypto space along with it.
The resurgence across the cryptocurrency market may only be the starting. After each previous halving, Bitcoin price has skyrocketed to new highs.
Coinciding with the bullish Bitcoin event, altcoins have been showing signs of a strong recovery.
XRP and XLM, two of the worst performing altcoins over the last three years have suddenly gone on powerful rallies against both Bitcoin and USD.
Buy signals have triggered across dozens of altcoins, including the market leader Litecoin, which often rises ahead of the rest of the asset class.
Despite Bitcoin’s recent boom, BTC dominance has been dropping, signaling that an altcoin season may be on the way.
However, some analysts are concerned that any Bitcoin volatility during the halving could lead to potential problems for altcoins, that often crash when Bitcoin pumps or dumps.
The best environment for altcoins to thrive is sideways Bitcoin price action. But with how bullish the halving is expected to be, or how bearish things could turn if it doesn’t perform as expected, altcoins could suffer another crash in the days ahead.
Regardless of another trip to retest lows, most altcoins have now broken out from long-term trendlines, and with BTC dominance falling once again, most signs are pointing to not only a new alt season but a Bitcoin bull run as well.
This first $20 billion added may only be the start.
Featured image from Pixabay
Author: Tony Spilotro
Cryptocurrency Trading Surges in Malaysia as Lockdown Cripples Economy | Regulation Bitcoin News
Cryptocurrency trading in Malaysia has surged as the country endures an extended lockdown, costing its economy an estimated $550 million a day. Regulated cryptocurrency exchanges are reporting substantial growth in trading volumes and new users as people seek “a good store of value in difficult economic times.”
Interest in cryptocurrency has grown significantly in Malaysia amid the extended lockdown restricting travel and nonessential businesses. The country estimates that 2.4 billion ringgit ($553 million) are lost each day that businesses remain shut due to the coronavirus pandemic.
Despite the worldwide economic crisis, cryptocurrency trading in Malaysia has shown strong growth, according to two government-approved crypto exchanges. Luno, Malaysia’s first fully approved digital asset exchange, told The Malaysian Reserve publication that local trading volumes on its platform grew 33% over the past four weeks. Luno Malaysia manager Aaron Tang said the number of active users on his exchange hit a record high during that period. “There are a plethora of digital coin investors in Malaysia,” Tang told the news outlet, elaborating:
We believe the surge is partly driven by the belief that cryptocurrencies (particularly bitcoin) are a good store of value in difficult economic times.
The Luno manager explained that some investors are using cryptocurrencies, such as bitcoin, to diversify their portfolios, because they are worried that huge stimulus packages and the global economic crisis could lead to inflation.
The second fully approved cryptocurrency exchange operator, Tokenize Technology, has also experienced an increase in user signups. CEO Hong Qi Yu told the news outlet that his platform is seeing an average daily trading volume increase of 30% to 40%.
Malaysia’s securities commission (SC), Suruhanjaya Sekuriti Malaysia, started regulating the country’s cryptocurrency industry on Jan. 15 last year, when “the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019” went into effect.
The Commission approved three cryptocurrency exchanges conditionally last year: Luno Malaysia, Sinegy Technologies, and Tokenize Technology. Luno soon met the regulator’s requirements and became the first exchange to receive full approval. Earlier this month, Tokenize Technology also met the requirements.
Suruhanjaya Sekuriti Malaysia clarified when the regulation went into effect: “Entities which have not been approved by the SC, including those which have previously been operating under the transitional period, are required to cease all activities immediately and return all monies and assets collected from investors.”
What do you think about Malaysia’s increased interest in cryptocurrency? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Author: Regulation by Kevin Helms
BitMEX forced to close doors in Japan due to amendments in regulation
BitMEX restriction in Japan was announced on April 28 in response to Japan’s Financial Services Agency’s (FSA) cabinet order on the regulatory measures on cryptocurrency exchanges.
According to order, amendments to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act will be enacted on May 1, with two major revisions:
Starting April 30, users from Japan who are registering for the first time will not be able to make any trade in the platform. Beginning May 1, users from Japan who have made their accounts prior to the announcement will not be allowed to place new orders anymore.
What this means for existing users is that they cannot “open a new position or increase an existing open position” anymore.
Nevertheless, open positions that have already been in place before the announcement will continue by virtue of the terms stipulated in their contracts.
It is still uncertain.
Despite these changes, BitMEX still expressed their support for the initiative of Japanese regulators in establishing “standards for cryptocurrency products” that have become increasingly popular in the country.
BitMEX added that they will remain at work with Japanese authorities to promote their objectives for Japan’s cryptocurrency market.
While BitMEX toned down its presence in Japan’s cryptocurrency market, they remain active in other markets overseas.
Fairly recent is BitMEX’s announcement that they will be launching an ETH/USD quanto futures contract in their platform on May 5.
This futures product will offer up to 50x leverage to traders. BitMEX also claims that this project is the first of its kind.
We will be bringing another new product to our platform with the launch of an ETHUSD quanto futures contract on 05 May 2020. More details on our blog: https://t.co/1LgME2IfA6 pic.twitter.com/elHFv5iyst
— BitMEX (@BitMEXdotcom) April 24, 2020
Futures under this BitMEX project is pegged on a Bitcoin multiplier, and not entirely dependent on the price of USD or ETH.
According to BitMEX, “this allows traders to long or short the ETH/USD exchange rate without ever touching either ETH or USD.”
Japan is not the only country, however, where BitMEX cannot freely operate.
Back in 2017, BitMEX also restricted U.S. traders from using the platform. According to previous reports, since BitMEX was not previously allowed by the Commodity Futures Trading Commission (CFTC) to run a broker platform in the U.S., citizens from the country are banned from using it.
Images courtesy of Tim Mossholder/Pexels, Photography Art/Stockvault
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