The History Behind Cryptocurrency Exchange

The History Behind Cryptocurrency Exchange

Cryptocurrencyexchange is also referred to as digital currency exchange which is a business whereby customers are allowed to exchange cryptocurrencies with other riches like warrant money. The good thing about it is that users can send cryptocurrency to their individual cryptocurrency xmr wallet.

Three major types of cryptocurrency exchanges

  1. Direct trading

With this platform one can be able to trade directly from person to person and users from distinct countries can be able to trade funds.

  1. Brokers

They include websites whereby users can be able to purchase cryptocurrencies through internet brokerswho set the prices.

  1. Trading platforms

This platform link sellers and buyers and charge for each transfer of money.

History

2004 is the year cryptocurrency exchange came to life. At that time, the Australian securities and investments commission closed down a cryptocurrency exchange firm which belonged to some Australian people due to illegalities. Two years later, another cryptocurrency exchange firm called GoldAgeInc., was also closed down. The owners of the firm Vladimir Kats and Arthur Budovskyallowed users to transact without any documentation/ license which was illegal.

A digital currency firm called Webmoneymade the cryptocurrency business restricted after theychanged their regulations. The process was improved later on whereby transactions from dollars were converted to liberty reserve which was made anonymous.

In 2008, there was an introduction of cryptocurrency exchange which was disseminated andeverycountry had its own unique rules. The major cryptocurrency exchange collapse was in 2014 where an exchange firm known as Mt. Gox was halted after they allegedly stole bitcoins.Due to all this irregularities, a firm must nowacquire a special license in order to run a digital currency exchange in Japan.

Characteristics of a good cryptocurrency exchange

The following are features you should known before affiliating any digital currency exchange

  1. Good reviews

The exchange should have a good reputation and also be highly rated by other users. You should also engage in their seminars to ask questions about the best Monero wallet and give feedback about it.

  1. Payment methods

The exchange should have many payment optionsfor it to beappropriatefor use. Some of the payment methods include; PayPal, wire transfer, and credit & debit card.

  1. Transferrates

Every exchange has its own different rate which will enable users to save while they shop.

  1. Verification requirements

Since every transaction requires verification, users should be patient if the process takes long because it safeguards the exchange from money laundering and scams.

  1. Fees

Users should have all the information related to fees and understand how they charge per transaction

  1. Geographical constraints

The exchange should allow full control to all functions and tools in the user’s country of residence.

The most powerful cryptocurrency exchanges

Below are the largest cryptocurrencyexchanges as of 2018 accordingto theapproximated revenues and amounts.

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