Cryptocurrency and its growing trading activities are inseparable. Since 2009, there is a substantial increase in the number of cryptos that are being traded online. The number of tokens has increased to 14k+. In terms of market volume, cryptos own a market share of $3 trillion. More than 50% of this market share is exclusively held by Bitcoin. The other alt currencies, stablecoins, NFTs, and others account for a balance of 50%.
Role of crypto exchanges in enabling crypto transactions
Bitcoin in 2009 aimed to provide easy peer transfer of digital currencies. The primary purpose of this token was to enable easier payments through virtual currencies. The goods and services as required by the users can be easily purchased using Bitcoins. Talking about it in a real-term scenario, Bitcoin enabled users to buy a McDonald’s burger using BTC. During digital payments, the token is transferred from one digital account to another. The entire transaction is undertaken on the internet. It also eliminates the role of banks and other regulatory agencies in confirming payments.
But with the growing demand and working advantage, Bitcoin soon became an investment. Many young and experienced investors tried their luck with Bitcoin investments. The prices of these tokens also went up to $123 per token in less than three years.
Thus the role and need for crypto exchanges grew in demand. Over the years, many crypto exchanges are taking the internet by storm. These exchanges play the primary role of enabling the easy buying and selling of crypto tokens. Most exchanges list all major crypto tokens including Bitcoin, Ethereum, etc.
Also, crypto exchange helps an investor gain a fair idea about market fluctuation. Such crypto exchanges provide detailed analyses of economic conditions as well.
Cryptocurrency exchanges are generally privately owned and function to facilitate crypto trading. Certain exchanges also help in undertaking transactions on non-fungible tokens and stablecoins.
What does crypto exchanges do?
While there are many advantages of using a crypto exchange let us understand a few.
Centralized and user-friendly
Yes, suppose you want to watch the prices of Bitcoin, Ethereum, and a few other tokens. It may not be possible for you to shuffle between multiple pages. This is when crypto exchange can help you. With crypto exchanges, it becomes much easier to create a watch list of your required tokens. The platform is user-friendly making every step easy. Additionally, you also get access to the central update in one place. It includes price changes, market predictions, and much more.
A reliable source of information
Compared to many online news portals, crypto exchanges provide you with reliable inputs. Additionally, the exchange also gives you the leverage of layers of security.
Now that we have seen the advantages, let us also look at the flip side of crypto exchange.
Prone to hacking risks
Yes, cryptocurrencies are highly secure. To date, there have not been any hacking incidents reported on the blockchain platform. But crypto exchanges do not provide the same level of security. Crypto exchanges are always open to security risks. It also makes it highly vulnerable to security threats and attacks.
Swyftx – the leading Australian-based crypto exchange
If you have been following crypto news for a while then you might be well aware of Swyftx. It is an Australian-based crypto exchange with a large number of individual investors. The exchange offers various features that make it an attractive choice for investors.
But we are not discussing positive news here. The Australian-based company is all set to lay off more than 21% of its employees. The company announced its decision to reduce more than 70 resources. The company spokesperson also clarified that they are taking care to ensure that employee needs are addressed. Effective severance package, career guidance, and other services have been created. The ongoing inflation, market crash, and various other reasons are the driving force behind this decision.
For the past few months, there have been substantial changes in the crypto market. The prices of various tokens have been crashing big time. Popular tokens including Bitcoin and Ethereum have fallen victim to this market crash. Other than Swyftx, other crypto exchanges are also under pressure. There have been speculations about massive lay-offs in the crypto market. Also, many companies have put a hold on their recruitment process as well.
To get daily updates on crypto use bitcoin in daily life.