With over 2200 tokens in circulation, a market cap approaching $300 billion, and $60 – $70 million in daily volume, the cryptocurrency market is a force to be reckoned with.
Additionally, the digital asset market has exhibited a solid growth pattern over the past several months, increasing consumer confidence and attracting new investors in search of promising opportunities.
What does all this change and positive movement within the market mean for cryptocurrency exchanges?
It means that the need for exchanges is growing as well. Cryptocurrency exchanges, also known as digital currency exchanges (DCE), are web service providers that enable customers to conduct a transaction in digital currencies.
Exchanges are essential to the growth of digital currencies. However, along with the rest of the cryptocurrency community and distributed ledger technology, exchanges have been through some rough times.
As recently as this month, volatility within the DCE space has been high. Hacking hit an all-time high last year, with no signs of slowing in 2019, despite increased security amongst exchanges.
New exchanges continue to hit the market. Each one makes claims of security, simplicity, and high fidelity. But which exchanges actually deliver on their lofty promises? Exchanges are multifaceted, and functionality differs significantly between platforms. The following four features are pretty important to most investors.
Security: Without a high level of confidence that their investment is safe, most investors are understandably reluctant to choose a trading platform. For many of us, this is the most important factor when selecting a DCE.
Fee Structure: Some investors have found themselves in a bad situation due to unexpected fees. Sometimes these fees are standard. Other times, they are higher than expected or for transactions that don’t typically incur fees in the fiat market. This can be ...