Digital currency exchange (DCE), also called cryptocurrency exchange, is a web-based business that provides customers with services for trading any cryptocurrency for various assets like fiat money. The platform works solely online, and provides exchanges in electronic form and charges a fee for them.
Standalone traits that successful Cryptocurrency Exchange have
Today, there are around 1,600 cryptocurrencies in circulation, with a total market cap of nearly $289 billion. Given are five, among many, of the important features of successful cryptocurrency exchanges.
- Decentralized trading
This no-central-authority feature is the most advanced way to trade the cryptocurrency. As traders, it is natural to seek zero interruption and expect complete control over funds while conducting e-commerce. Exchanges are verified through cryptography by network nodes and recorded in the blockchain. This way, third parties cannot play middleman when two primary parties trade between them.
- Instant buying/ selling attributes
Not all come to trade on a cryptocurrency exchange. Some are there looking out for a quick option to either buy or sell a Bitcoin. Therefore, a cryptocurrency exchange should be flexible enough to accommodate the needs of both traders and nontraders. For one-time traders, the exchange should provide easy to access and instant order-placing features.
- Facilitate multi cryptocurrencies and multi-currencies trading
People do not transact just with Bitcoins in crypto trading; they look out for options that allow them to trade any small-cap cryptocurrency of their likings, such as SelfKey, monero or ripple. Therefore, an exchange should take into account the different categories of traders and allow everyone to exchange with any type of cryptocurrency. Further, a global exchange would facilitate currency pairings with more than 50 fiat currencies, not just with the USD and EUR.
- Margin trading
Margin trading is cryptocurrency trading where traders borrow money from a brokerage to buy an investment. It leverages a trader’s position to a trading eligibility level where marketeers can exchange more Bitcoins with the funds they have. A margin amount is loaned to the traders who, in turn, provide collateral, i.e., securities held in the investor’s account, for the deposited amount at a certain ratio level. When traders reach the eligibility mark, they can trade with the loaned amount. After the trade closes, the traders should return the loaned margin amount with interest.
- Futures trading
Futures trading is the exchange of any asset, e.g., cryptocurrency or real assets, at a fixed price conducted at a specified future date/time. The trading process is carried out based on a futures contract that represents the tradable resources’ value. Futures trading protects sellers against price falls and buyers against future price increases.
Some of the other key features facilitating a successful cryptocurrency exchange include:
- token listing/IEO(initial exchange offering)/Launchpad,
- community interaction,
- validness and security,
- UI/UX functionalities
- low fees, and
- reliable customer service.
Crypto trading has become very easy and efficient with the help of platforms such as Bitcoin Code Review. It provides an automatic and manual trading facility. Click for more information. Regardless of a trader’s experience level in the cryptocurrency exchanges, these traits would make it possible for a successful and dominating cryptocurrency trade.