A cryptocurrency exchange can be deemed as a stock exchange in finance industry offering ICO (stocks/securities) transaction services for users if an ICO is a stock. The differences between the two lay in cryptocurrency exchange online operations which make it few hundred times/even 10 thousand times faster than traditional stock transaction.
Cryptocurrency exchange, an important role in blockchain ecosystem
Cryptocurrency exchanges can be further categorized into two types: cryptocurrency exchange and fiat money exchange. Cryptocurrency exchanges offer online exchange services between cryptocurrencies while fiat money exchanges offer online exchange services between cryptocurrency and fiat money.
Binance is a cryptocurrency exchange currently dealing with the largest trading volume in the world having over 10 million users. It starts with offering online cryptocurrency exchange services and as the business grows, Binance develops exchange services between cryptocurrency and fiat money as well; moreover, credit cards including Visa and MasterCard are available for purchasing hundreds of cryptocurrencies such as Bitcoin, Ethereum on Binance starting early this year. Simplex is to be the third party service provider that charges an administration fee of transactions.
Although Binance is the world’s leading cryptocurrency exchange in trading volume, it is not the most popular exchange among Taiwan coin circle for it does not accept NT Dollars and the transaction fee is too high when purchasing via credit cards. Actually, there are quite a few private cryptocurrency exchanges in Taiwan. Despite that they are not listed in world 100 top exchanges, they remain quite famous in the cryptocurrency market for they are specialized for different needs. Taiwan-based exchanges such as Bito, Max, Cobinhood, and JOYSO provide various services that meet users’ needs in cryptocurrency transaction.
Bito is one of the first cryptocurrency exchanges in Taiwan which has been offering cryptocurrency transaction services since 2014 and has been working with FamilyMart in wallet services since 2015, soon after that, users may purchase Bitcoin and Ethereum directly in FamilyMart. Buying BTC in a convenience store became a sensation in the crypto market as the cryptocurrency was all the rage in 2017. Bito Exchange held a record-breaking ICO for raising NTD.650 million in merely 26 hours in Taiwan. Meanwhile, Max Exchange supported by KGI Bank jumped on the bandwagon and worked with Hi-Life, making all-cash BTC purchase available in convenience store.
Those who are familiar with cryptocurrency short swing trading must know Cobinhood Exchange which is a typical cryptocurrency exchange established in May, 2018 providing cryptocurrency transaction services only, that is, fiat money transaction is not available on Cobinhood. Users will not be charged administration fee for the transaction, and it has over 1 hundred cryptocurrencies to choose from which facilitates short swing trading. Users who need to withdraw money must transfer their cryptocurrencies to other fiat money exchanges first.
JOYSO Exchange aims to improve transaction security. As we know hackers are natural enemies to all the cryptocurrency exchanges, any company might face financial breakdown, litigation risk, data security and reputation crisis once they steal cryptocurrencies from exchanges. Hackers are one of the reasons why cryptocurrency exchanges go out of business; to overcome this problem, JOYSO defied the traditional pattern of exchanges by establishing the world’s first “hybrid decentralized exchange” which offers token escrow services allowing users to control their currencies. Users may manage cryptocurrencies on their own when the exchange is hacked or encountering an unexpected server downtime, this mechanism improves the security of an exchange and prevents hackers from stealing assets effectively.
South Korea has top five trading volume in the world. Since ioeX is I close collaboration with South Korean-based entities, we have noticed that there are quite a few exchanges worth mentioning, among them, Bithumb is considered to be quite a sizable exchange which has around 1 billion US dollar cryptocurrency trading volume according to its official website, that is around 10% of global trading volume and it makes Bithumb the largest exchange in South Korea. The major reason why Bithumb is so successful is because it charges lowest transaction fee ever. According to a foreign media’s report, Bithum is planning on going public in the United States through a reversed merger. Once the merger is done, it will become the first cryptocurrency exchange in BXA (Blockchain Exchange Alliance) that hits the market in the U.S.
Upbit Exchange was available online in Oct. 2017 and it can be deemed as a dark horse in crypto world. It is one of the top 15 exchanges around the world with a daily trading volume of USD.360 million. It supports more than 300 kinds of mainstream cryptocurrencies and continues to evolve. Upbit is a result of collaboration between South Korean financial technology company Dunamu (the parent company of the most popular communication APP in South Korea “Kakao”) and “Bittrex,” the leading crypto exchange in the U.S. Upbit will reportedly begin operations in Singapore by founding a cryptocurrency exchange there.
Another dark horse in Chinese market is Bitassest (BA) which is also worth mentioning. It is a HK-based exchange founded in Dec. 2017 and is the one of the very first legal exchanges in HK. They have expanded business to Taiwan recently by holding many anticipated blockchain related academic activities. Bitasset has service sites in Taiwan, HK, the U.S., and South Korea. They have over 0.5 million users currently. The major advantage of Bitasset is that they support many fiat money including RMB and NTD; recently, Hong Kong dollar, US dollar, Korean won, and Japanese yen are available on Bitasse as well.
Detailed information such as the global rankings and trading volume of those iconic exchanges mentioned above can be found in this link:：https://coinmarketcap.com/rankings/exchanges/
Each exchange in the market possesses some sort of features, advantages, and disadvantages of their own. To carefully choose a cryptocurrency exchange is just as important as to choose exchange for long-term stock investment. Small scale exchanges might have low trading volume crisis while large exchanges might face the danger of hacker penetration, therefore, it is better to choose an exchange according to your need and always spread the risks.
Whomever invests in stock must know that you have to start an account for securities, stocks, and futures before investment, so as in cryptocurrencies’ world. In coin circle, we name such an account for transferring as “a wallet” which can be further categorized into a “cold wallet” or a “hot wallet” for storing users’ cryptocurrency assets. Most of the users will start a “cold wallets” for being in a much higher data security level. Please read more for the information of blockchain ecosphere.
Cryptocurrency Currency Tips- Cold Wallet
Chinese version: http://bit.ly/2Var5lh
English version: http://bit.ly/2V4DLd0
*ICO: An initial coin offering launched by a company looking to create a new coin is roughly equivalent to an IPO in the mainstream investment world.
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