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Do We Really Need So Many Crypto Exchanges? Yes, and Here’s Why

 Do We Really Need So Many Crypto Exchanges? Yes, and Here’s Why
Do We Really Need So Many Crypto Exchanges? Yes, and Here’s Why

Over the last couple of years, the crypto exchange market has exploded at a rate seemingly unrelated to the value of the cryptocurrency markets. At this time, CoinMarketCap alone lists over 250 different trading platforms; however, there are probably hundreds more. Although it’s difficult to get precise numbers about exchange launches, this year we’ve seen many more new exchanges come to the market, including the Binance DEX, DX.Exchange, and BQT.

So, Isn’t the Exchange Market Too Crowded?

A new crypto user would probably say yes. After all, with hundreds of exchanges to choose from, any newcomer being told to “do your own research” has their work cut out.

Each exchange offers a combination of coin pairings and trading fees, with different user interfaces, quality of customer service, and security considerations. Some allow fiat on-ramping, others don’t. This all comes before you consider additional offerings like exchange tokens, margin trading, or the whole centralized vs. decentralized debate.

However, for anyone who’s been around the cryptocurrency scene for a few years, there are reasons to welcome an influx of new exchanges. One critical point it solves is the distribution of funds across many smaller targets for hackers.

Back in 2014, crypto exchange behemoth Mt. Gox was handling around 70% of transactions worldwide. Hackers hit the exchange hard, lifting 850,000 BTC, worth around $450m at the time. The incident was catastrophic for the markets. Bitcoin lost more than half its market cap over just a few months.

Si…

This article appeared first on Cryptovest

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: investing.com
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