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Bob Mason
The Rise of Cryptocurrency Exchanges

While cryptocurrencies and the blockchain technology have garnered most of the good publicity over the last year, blockchain tech finally making some inroads into the real world, supporting the cryptocurrencies that fuel them. So far, the only press that crypto exchanges have received has been the bad kind, in spite of some quite remarkable advancements in the cryptocurrency space in a very short period of time, when considering the evolution period of exchanges providing traders a platform to trade the more traditional asset classes.

While many of the world’s leading bank CEOs spent much of last year and the early part of this year sledging the cryptomarket, the reasons largely attributed to fear of a material shift in the dynamics within the banking industry. With the likes of Ripple and Litecoin’s platform demonstrating how a world without banks can function, the cryptomarkets were getting wise and quickly.

Unsurprisingly, while some of the world’s most well-known banks looked to offer a cryptocurrency trading platform for their clients in recent months, the market has already evolved at such a pace that has left investment banks perhaps too far behind, with existing and up and coming exchanges offering far greater trading options than any archaic platform can ever hope of delivering.

When considering the vast number of more experienced traders crossing the divide into the world of crypto, crypto exchanges have certainly been the beneficiary of a material rise in the market capitalization of the cryptomarket.

For traders and investors alike, cyber-attacks on the more traditional, centralized exchanges, have been a concern and have contributed to the riotous movements in the cryptomarkets that has drawn condemnation from regulators and governments, who seem to have made it a mission to cripple the concept of decentralization in the interest of preserving investor capital, or so they say…

The Evolution of Centralized Cryptocurrency Exchanges

In the wake of some high profile hacks, decentralized exchanges allow cryptocurrency investors to take full control of their coins or tokens, by transferring them from their account on an exchange to their digital wallet that needs to be compatible with the respective coins or tokens.

With cryptocurrency and token holders holding their investments outside of the decentralized exchanges purview, the exchanges don’t require additional third-party services, significantly reducing the risk of theft from cyber-attacks.

When you have your own private keys and multi-layer log-in features to access your digital wallets, it’s certainly of greater comfort than to leave the coins in an account on a centralized exchange, where theft could result in the total loss of your investment.

In a recent survey carried out by Encrybit , 40% of survey participants identified security as a major problem, with trading fees (37%), liquidity (36%), a lack of timely support from exchange support teams (33%) and too few crypto pairs (22%) amongst the list of issues faced by investors and traders alike.

On the plus side, Binance was identified by 27% of participants for its good volume and airdrop policy, with 19% of respondents identifying Houbo.pro for its superior arbitrage offerings.

Other positives from the survey included:

  • Recognition of Okex.com for its trading platform and volume. (14%)
  • Recognition of Bitfinex as the best UI for on the spot TA and algo trading options, trading with margin and direct withdrawals in fiat currency. (11%)
  • Recognition if Bittrex for its good GUI, coin offerings and easy to navigate platform. (9%)
  • Interestingly, 7% of respondents stated that they did not have a preferred exchange, suggesting that, they are either satisfied with any of the exchanges or that there is a need for a material improvement in trading platform capabilities.

The purpose of the Encrybit survey was to better understand the issues faced by traders and investors alike, giving Encrybit the necessary knowledge to deliver what other centralized exchanges fail to deliver in the ever-growing world of cryptocurrency trading and investment.

Encrybit is an upcoming centralized cryptocurrency exchange platform offering powerful trading solutions for crypto traders to utilize their trading skills, such offerings including but not limited to:

  • Social trading functionality that enables users to share trades and ideas within the world of Encrybit.
  • Encrybit’s order matching algo can handle 1m orders/second with 3 tier security to safeguard traders’ assets.
  • Encrybit’s powerful built-in technical analytics enables professional level TA capabilities for a large and constantly growing number of cryptocurrencies.
  • The Encrybit custom market overview enables users to set up their ideal trading environment, from where users can reach extensive market research, analytics, strategies, signals and social feeds.

Encrybit’s survey garnered the opinions of 1,108 participants, giving Encrybit and other exchanges some much-needed views, with the 3 most wanted features being simplicity, expedited withdrawals, and improved security.

It’s worth noting that Encrybit is a centralized exchange platform, but when considering the key offerings and priorities from an investor and trader perspective, there will likely be much greater comfort in using the Encrybit platform over other centralized exchanges.

When considering the rising competition amongst the exchanges and the ever growing popularity of cryptocurrency trading, the persistent volatility attractive for all kinds of investors and traders, the Encrybit survey was a timely one and, while the competition may take advantage of some of the respondents views, delivering respondent demands will certainly place Encrybit in good stead as other major cryptocurrency exchanges now looking to make the necessary enhancements to deliver, once the bearish trend across the broader market reverses, something that is unlikely to be far off.

When looking at the current crypto market cap, there’s plenty of cash sitting on the sidelines waiting to get back in and, when considering the peak market cap of in excess of $820bn, there’s a vested interest to consider the demands of all.

From the Encrybit survey, exchange liquidity was certainly an evident characteristic, alongside effective trading facilities including Advance Ordering System, Timely Alert, FA and TA and Broad Order Book, which are far more effective with the greater liquidity. Trading platforms are also easier to use and, with the key issues faced by traders and investors being on decentralized platforms, centralized platforms have a long way to go and could ultimately come out on top should the risks of cyber-attacks be addressed and governments and regulators balance the power between the two.

The Encrybit ICO is coming soon and it’s going to be the People’s Exchange, delivering on security, liquidity, and ease of use, the combination of which is likely to propel Encrybit to the top of the table.

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