Why the cryptocurrency exchanges need a makeover
According to the nature of cryptocurrencies, they are described as digital assets which have been designed specifically as a medium of exchange which is meant to use cryptography to make sure that the transactions are secure and to make sure that the additional and new units are controlled and also to enable the verification of assets. Therefore, it’s a venture where individuals can invest in and make huge amounts of money. This discussion is meant to give the various reasons why the cryptocurrency exchanges may need a makeover. This means some reforms of any kind are needed to streamline the activities which happen in the day to day transactions.
First of all, hacking has been a menace in the cryptocurrency world and exchanges. From time to time, hackers have been able to access the cryptocurrency investments and go away with loads of investments. According to various online sources, more than 1,000,000 bitcoins have been stolen as a result of hacking. Therefore in this reform, a makeover is needed in the sector of security and encryption. The cryptocurrency exchanges should be involved in research to the security holes and weaknesses in the systems where the hackers get access and seal the security holes. Additionally, they can remodel the entire security system to make sure that they have improved the security features. Therefore, anyone who accesses to the cryptocurrency exchanges should be prompted with the actual information in their profiles to verify that they are the real account owners.
Secondly, the high trading fees have been keeping people away from making huge investments. Each of the cryptocurrencies grows gradually, therefore, a few years ago, the cryptocurrencies were very cheap, and however, the people did not have enough knowledge about how they operate. Over the years, the cryptocurrencies have been growing gradually. For instance, bitcoin was very cheap 2 years ago, but the people had less knowledge about investment in cryptocurrencies. Therefore, they did not make the investments at the time. Currency, since they have witnessed the success of the cryptocurrency exchange, the trading fees are now high which prompts the people to invest less of their money to the cryptocurrency exchanges.
(This data contains the total cryptocurrency market capitalization in USD, therefore, it is an explanation of the trends of investment to the cryptocurrency world up to 2017. As it is seen in the graph, cryptocurrency exchanges have been in most cases rising which guarantees profits for the investments.)
Third, the people should be educated well about the investment in cryptocurrencies. Since the cryptocurrency exchange world began, the people did not have any knowledge about the venture years ago. Only a few people had the knowledge of investment in the cryptocurrencies which started with bitcoin. Over the years, the people have learned from other people success. Therefore, it is an important factor to ensure that the institutions which are involved in the cryptocurrency exchanges provide the necessary information and education about the cryptocurrencies and how people can reap big from the investments. Education should range from the minimum amount one can invest, what is needed, changes of profit-making, the technicalities and the information which is required and so on. With this information, they can also be able to educate the other people about the technicalities involved in the investment and prompt them to make investments accordingly.
In conclusion, the exchanges should make sure that they have made major considerations about the various world related currencies and how they can be incorporated into the exchanges. This makes sure that individuals can invest in their local currencies without necessarily having to change their currencies to the accepted currencies and making investments. Therefore, the makeover changes discussed should be considered in the cryptocurrency exchanges to ensure that the operations are swift and that there are no negativities realized in the systems. This ensures that people invest more without the fear of the cryptocurrencies.
