BtcEX platform is a centralized exchanges that fit to our Business model (trading fee) that our match engine capable of one million transactions per second. Almost 99% of cryptocurrency trade still happens on centralized exchanges which compare to decentralized exchanges like Bisq, Etherdelta, IDEX, Waves, Openledger, Bancor Protocol, 0x Protocol.
Advantages of centralized:
- Higher trade volume.
- Higher liquidity.
- Fiat / crypto exchange (BtcEX provide BTC/USD ).
- Accept bank wire transfer, credit and debit for fiat payment.
- Functionality can offer margin trading (trading or credit) discount of high-volume, forex style currency pair, lending and large amounts of financial data.
- Legality & regulation that BtcEX are licensed & regulated by government institutions.
- Transparency BtcEX needs to publish ownership on Estonia FSA that customer can check it website, including location of offices, servers else.
Disadvantage for centralized:
- Risk of infrastructure that depends on server, network & software design & structure.
- Risk of government shutdown due to regular policy of cryptocurrency.
- Privacy that user need to provide personal privacy including bank account, residential address and identify document.
- Risk of Hacker’s attacks, base on past experience. BtxEX improved our web server, hot wallet, platform core, admin & offline wallet design & structure.
Advantages of decentralized:
- Risk of Hacker’s attacks due to node are distributed lower risk.
- Risk of infrastructure because hosting is distributed through nodes, there is virtually no risk to infrastructure downtime.
- Risk of government shutdown due to distributed worldwide, government intervention shutdown is not possible.
- High level privacy in anonymous.
- Functionality on limited (no stop loss or limit order available).
Disadvantage for decentralized:
- Low trade volume.
- Low liquidity.
- Only crypto trade exchange cryptocurrency.
- Almost accept payment in cryptocurrency.
We can see the most advantage of decentralized exchange is safety & can’t shutdown by government due to distributed through nodes & privacy almost trade with anonymous. But low volume and liquidity !
Conclusion
The only way to attract more people to join cryptocurrency trading factory is first to create and deep, higher market liquidity and volume in major cryptocurrency let user trade in small spread, easy match order and lower fee. KYC must be process due to it can be exclude financial crime eg AML / CFT. Only approved in KYC that allow trade in higher amount and volume will increase. We believe that centralized exchange still at Major market in cryptocurrency industry in the coming future ! Decentralized also in secondary market. BtcEX aims to provide a liquidity, stable banking solution and safety platform to build cryptocurrency secure, transparent & liquid ecosystem.
