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The current crop of exchanges are decent solutions for those looking to buy their first bitcoin/cryptocurrency/mooncoin/shitcoin. But, for professional traders, the existing solutions are like a bandage that was fashioned out of a rundown rag - it does what it should but it's neither the most effective nor comfortable. You use that rag only because you have no alternatives... Couldn’t Crypto-Exchanges Just Build It With their Millions of Dollars? They could’ve. They should’ve. That’s a reductionist argument. As an entrepreneur, I see that crypto-crypto trading experience is woefully inadequate and I’m going to change it with our cryptocurrency trading platform DxOne. It is 2020. Customer centricity demands that you make the user experience seamless and require fewer clicks (or customer touch-points). The current crop of cryptocurrency exchanges has badly failed on this front. But first, let’s talk about the state of crypto-crypto trading today. There are over 5,000 cryptocurrencies according to coinmarketcap today. Only those cryptocurrencies that are listed on at least two exchanges get listed on coinmarketcap. Thus, the actual number could be at least 4 times that number. What do a vast majority of these cryptocurrencies have in common? - They’re either unlisted or listed on some small cryptocurrency exchange - They’re paying a monthly fee to a “Liquidity Provider” to prevent delisting - They’re picked up by certain actors to effect their pump and dump schemes - Their Founders have moved on (but the Blockchain remembers) Sound familiar? Well, this isn’t even the worst part. What’s really bad, at least from a purely pioneering perspective, is that while the new trader getting overwhelmed by the Wild West is considered acceptable, the grizzled veterans facing the heat is sacrilegious, and even damning. What Does The Veteran Crypto-Crypto Trader Need? For the context of this article, I’m assuming everybody who’s traded in altcoins outside of the Big 7 - BTC, ETH, BCH, LTC, XRP, XLM, and BNB to be a seasoned crypto-crypto trader. This trader trades more with discipline and less with lucky charms. They expect to have: Customizable Dashboards - Instead of a cluttered interface or the new-fangled minimalistic dashboards, the veteran crypto-crypto traders want more control over what information gets the precious real estate on their screen and what doesn’t. The existing cryptocurrency exchanges confine these traders to whatever interface the UI/UX developer deemed it to be. In my opinion, cryptocurrencies are all about individual choice and that implies complete customizability. Try trading calmly when the VIX shoots by 60% intra-day and you’re scurrying to locate the Elliott Wave tool. Distraction-Free Realtime News Feeds - The crypto-crypto trading veteran does not wait for “crypto-influencers” online to tell him/her what to trade. To be ahead of the curve, they require real-time news feeds from news-media, crypto-media, and financial-media, to quickly add 2 and 2 in their heads and execute their trades. They don’t want to have 25 tabs open in their browser and run the risk of browser crashes or something as simple-yet-painful as being unable to locate the right tab at the right time. True Price Discovery - Unlike FIAT, where the price of a currency is relatively stable (because the issuing authority is a Governmental Organization), the price of cryptocurrencies is purely driven by their demand. The price of 1 ETH is always what the buyer and seller agree to transact at. Thus, with several pump and dump schemes at work, fake liquidities, and sometimes even collusive activities by cryptocurrency exchanges, the veteral trader is (should be) always wary of the true price of the cryptocurrency being transacted. The adage that there is strength in numbers is true and hence the seasoned traders too flock to the bigger exchanges since they’re harder to manipulate, hack, or subvert. What Are The Biggest Cryptocurrency Exchanges Today? According to the Blockchain Transparency Institute, after adjusting for faked volumes, the largest cryptocurrency exchanges, by traded volume are as follows: Binance: Spearheaded by crypto’s own - CZ, it has reportedly the largest monthly verifiable trading volume across the board. As one of the early entrants to the crypto-trading realm, Binance has emerged as the go to name for first-time cryptocurrency traders worldwide. Recently, Binance has been on an expansive rampage with the introduction of its own Blockchain and a Futures Trading mechanism. Coinbase: Arguably the most trustable of all cryptocurrency exchanges, Coinbase is headquartered in San Francisco. It is strongly compliant to the US regulatory authorities and to several other global regulatory bodies making it one of the safest options for those looking to dip their toes in the freewheeling realm of cryptocurrencies. Upbit: Headquartered in internet-savvy South Korea, Upbit has seen some of the fastest growth among all crypto-exchanges. Consistently ranked as one of the cleanest exchanges, the Upbit exchange also bounced back quickly after losing $48.5 Million in Ethereum due to a hack. Other big names include Bittrex, Kraken, Bitfinix, and BitMex to name a few. Between them, they account for over half of all legitimate cryptocurrency trades on a daily basis (with fluctuations of course). Does that mean that the market for cryptocurrency exchanges is a red-ocean market? To answer that, we need to keep into consideration that the cryptocurrency market in itself is almost entirely unsaturated. How Big is the Cryptocurrency Market? Cryptocurrency’s potential and its current market size can both be summed up via this tweet: The Moon @TheMoonCarl Gold has fallen 6% today!! 😵 This means that gold fell an amount worth more than 5x the entire #Bitcoin market cap IN ONE DAY! While nocoiners would argue at this point that the cryptocurrency market size is still insignificant when it comes to the larger traditional investment market, the other camp takes solace in the fact that the rise of cryptocurrencies cannot be denied anymore.
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