- Posted by ico-check.com
The world of cryptocurrency exchange is a dynamic and constantly changing environment. This is because we are in the middle of a financial revolution that is currently happening today as we speak. Back in the day, people would trade crops for spices or other things that cannot be found on their side of the plain, this resulted in the barter economy or trading one good for another. Fast forward a few thousand years later, money was invented to replace barter trade and create a different trading medium. Of course currency is not global and different countries have their own currency to circulate within the country. International trade was obviously hard before the Foreign Exchange Market was invented. In the world that we live in today, we are integrating crypto as a new decentralized monetary medium that is taking everyone by storm. Naturally, exchange websites exist to not only cater to Fiat-Crypto trade but Crypto to Crypto trade as well. In this article, we will be talking about how cryptocurrency exchange started, how it is today, and what will it become a few years from now.
Cryptocurrency and its various exchanges didn’t just come out of a cereal box. Crypto was introduced around a decade ago and not until five years later (around 2013) did it start to be relevant.
Back in 2010, a programmer named Laszlo Hanyecz traded 10,000 BTC for two pizzas. People at that time didn’t even know what he was doing and even laughed at the thought of exchanging “mere computer codes” for food. Little did he know that this was the first step or the “barter trade” era of Bitcoin & cryptocurrency which would eventually evolve into a thriving market today.
There have been a lot of exchange websites that have catered to crypto trade, but there are only a few websites left from the pioneering era of bitcoin. The ”Older” websites died because of the evolution of the crypto exchange trade. If you think about it that way, Darwin’s theory of evolution fits perfectly where natural selection plays part and weeds out the weak platforms and we are left with effective, advanced and legally compliant exchange websites.
Way back in 2010, the first BTC exchange was established by a Bitcointalk user but just dwindled into non-existence after they had an issue with PayPal. The failed attempt at creating a solid exchange market was taken up by MtGox.com and we all know how it all ended. For you guys that have no idea about what happened with the website, they were the biggest exchange market for Bitcoin but the site had an implosion due to the massive BTC theft that happened in 2014. Ask anyone that is into the Bitcoin exchange world and they will tell you how MtGox fell from grace and brought about a bear market for around a year or so.
Exchange websites have different ways of storing their crypto funds, and they way they stored their funds has evolved over the years. Crypto is usually stored in Hot and Cold wallets and both have different uses. Hot wallets are wallets that are used to provide for the daily liquidity needs of customers, thus making them vulnerable to attacks since they are stored online. On the other hand, we’ve got cold storage that is kept offline making it more secure compared to its counterpart. Since the MtGox issue, you have some exchange websites that have been telling people that they store more than 90% of their funds in cold wallets to ensure the safety of their customer funds.
The exchange websites eventually moved outside the realm of BTC and integrated other emerging alt-coins like Ethereum, Monero, Doge, and Litecoin into their exchanges. By doing this, the crypto exchanges helped spread cryptocurrency and encourage the growth of other crypto markets.
Most importantly, exchange websites have become more vigilant in terms of security. There are noticeably more exchange websites today that pro-actively include Two-Factor Authentication in their registration process to make sure that their customers accounts are secured and well-protected.
There might be a lot of exchange websites today but there are a few websites that you might want to check out if you want to get your feet wet. To name a few we’ve got Coinbase, BitMEX.com, Binance.com, Bitfinex.com, Huobi.pro and OKCoin.com. This short list might not include any of your favorites but they do their jobs pretty well. These websites have good liquidity, offer leverage for trading and offer Futures, Derivatives, and Margin Trading too.
Exchange websites did not only evolve to be straightforward currency trading websites, they also have become trading platforms for fiat & tokens against cryptocurrency. If you’re looking into creating an exchange account with any of the available websites today, here are a few aspects that you might want to consider.
People should also keep in mind the availability of Peer to Peer (P2P) websites that offer exchange services. The difference between P2P websites to regular ones is the fact that you will be able to conduct trade of crypto face to face with a person from your area. What’s great about this is that the market is given a face and not just something that purely happens online. This gives validation that cryptocurrency is a real thing and not just something that people on the internet thought of creating. If you are interested in P2P Bitcoin Exchange websites then make sure you read about LocalBitcoins.com since they accept all imaginable payment methods and support P2P exchange.
Despite the volatility that cryptocurrencies bring, there’s a big chance that a few years from now we will see crypto as an alternative payment medium over Fiat currencies. The world of crypto is exciting and rewarding if you know where to trade and how to make profit out of it. The market might not look stable as it is today, but it is surely more stable than the market we had a few years back. There is also a trend towards decentralized exchanges like Idex.market, Etherdelta.com and RadarRelay since they solve a lot of issues of centralized exchanges but also have some issues of their own.
Time will tell whether centralized or decentralized exchanges will prevail so it is good to keep your options open.
Before heading straight to your first exchange website, make sure that you have read about exchange tips and tricks to get the most out of your investment. The ico-check team wishes you good luck on your foray into exchanges!