Every day, almost all cryptocurrencies, such as Bitcoin and Ethereum are making headlines on one aspect or the other. On the other hand, regardless of the market is falling down, gradually more people are jumping into the crypto trading business. Moreover, they are doing it through a Cryptocurrency Exchange Platform.
Why cryptocurrency exchanges?
The most vital feature of any trading exchange is liquidity. Most of the investors make an investment with the ultimate goal to get maximum returns. Without liquidity, operating a successful crypto exchange becomes unfeasible. This is predominantly true of cryptocurrency exchanges with volatile marketplaces.
Centralized vs Decentralized exchanges
Blockchain technology is visualized to be an open-source plan where a decentralized sharing of power exists as an alternative to focusing on a single authority.
Centralized exchanges openly challenge the blockchain values as the assets are controlled by a single body. In other words, the key to access all your resources/money is with the Cryptocurrency Exchange Platform, and not with you.
At present, in crypto space, centralized exchanges add to the larger share of the marketplace. In contrast, decentralized exchanges take up blockchain technology and function on a peer to peer protocol. This indicates that the system is based on the number of self-determining nodes that will make sure the efficient functionality of the platform.
Liquidity is one of the key problems with decentralized exchanges. At present, on decentralized platforms, there are not sufficient market creators who could draw a reasonable amount of takers. For that reason, liquidity is rather scarce to compete with centralized platforms.
How to Choose a Cryptocurrency Exchange Platform?
Unlike the other exchanges which function in particular time zones, cryptocurrency is traded all over the world (24 hours a day, 7 days a week). Crypto investments are not alike bank investments. The security measures taken by a crypto exchange are good enough to resist the breach efforts from the hackers. It is vital that an exchange takes wide-ranging security measures like the two-factor authentication, password strength, captcha, anti-phishing code, and more.
Transparency is another factor that defines the reliability of an exchange. It is very important to know the place of an exchange and often the transaction rates are somewhat more for the safer exchanges, but it all makes sense when the charges are assessed against safety.
UZyth is the biggest multifunctional Cryptocurrency Exchange Platform to ever be created.
