Why Start a Cryptocurrency Exchange?

Posted by Bessie joans on March 22nd, 2021

In the present scenario, we all moved to the digitalized world and drifted all our activities in the digital platforms. 

Digital currency is one of the remarkable elements growing rapidly due to technological advancements.

Cryptocurrency is a virtual currency, it is available in various types like Bitcoin, Altcoin, Ethereum, Ripple, etc.

Each cryptocurrency has its own assigned value. The demand for Bitcoin is increasing in the global market. The emergence of new crypto is leading to the need for cryptocurrency exchanges in the market.

Cryptocurrency can be traded on Crypto exchanges. 

The Cryptocurrency exchange is the platform where the buyers and sellers can exchange cryptocurrencies among them without depending upon a third party like Banks.

Crypto exchanges aim to trade cryptocurrencies for fiat currencies without depending on any third party for their financial transactions. The Cryptocurrency exchange is a trending business in the market due to the increased price of Bitcoins. People are fond of acquiring Bitcoins and it is also very helpful for business people to invest.

There are various types of crypto exchanges available at markets let us discuss.

Centralized Cryptocurrency Exchange 

CEX is the broker-based digital exchange where users trade their cryptocurrencies in a trust-based environment with the play of middleman. 

Decentralized Cryptocurrency Exchange 

Decentralized Cryptocurrency Exchange pairs the traders directly without any third-party assistance and enhances security and privacy.

Hybrid Cryptocurrency Exchange

The Hybrid Crypto exchange has both types of properties from centralized and decentralized exchanges providing the user with a wide range of options.

P2P Cryptocurrency Exchange Software Development

The P2P is a crypto exchange that allows users to directly interact with each other to trade. The buyers and sellers post their requirements as ads with the required details and the matching engine matches the buyers and sellers according to their demands. 

Escrow Based Cryptocurrency Exchange

The Cryptocurrency exchange that allows user to interact directly with the help of posting ads. Once they enter into the trade process dedicated escrow service is enabled between them to execute the tradings without any dispute among the buyer and seller. 

There are top 5 cryptocurrency exchanges and their volumes in USD

Binance -,953,692,424

Coinbase Pro -,121,336,101

Kraken - ,107,578,288

Huobi Global - ,623,428,493

(Source:coinmarketcap)

The report indicates the demand for cryptocurrency and crypto exchanges is increasing in the market. Starting a cryptocurrency exchange business will be a beneficial business plan. You can launch your cryptocurrency exchange platform with the help of a cryptocurrency exchange software development company. 


Bessie joans

About the Author

Bessie joans
Joined: February 12th, 2020
Articles Posted: 33

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