What Can Crypto Exchanges Learn From Traditional Banking?
FIST IF U ARE NEW TO CRYPTO THAN PLEASE READ THIS TO UNDERSTAND!
FIRST OF ALL WHAT IS BITCOIN AND CRYPTOTRADING
What is the meaning of bit coin?
Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country's central bank or government. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
How a Bitcoin is made?
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
How old is Bitcoin?
Bitcoin is 8.36 years old.
The software has been running and the blockchain has been growing since January 3, 2009 at 2:15PM EST, when the genesis block was created. The paper, Bitcoin: A Peer-to-Peer Electronic Cash System, was published on October 31, 2008 at 2:10PM EST.
What is mining in Blockchain?
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Is the Bitcoin legal?
Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators, all of which are trying to understand how the cryptocurrency fits into existing frameworks. The legality of your bitcoin activities will depend on who you are, where you live, and what you are doing with it
What is block chain technology?
What is a 'Blockchain' A blockchain is a public ledger of all Bitcoin transactions that have ever been executed. It is constantly growing as 'completed' blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.
Cryptocurrency Trading is the Forex (Foreign Exchange) of cryptocurrencies. This means, you are able to trade different bitcoin and altcoin normally for USD and BTC. Cryptocurrency Trading is an alternative way to get involved in the Crypto-World!
NOW COME TO THE NEWS/What Can Crypto Exchanges Learn From Traditional Banking?
Legacy banking lessons
The crypto-sphere needs to take some lessons from legacy banking models, in at least three areas - simplicity, scalability, and reporting methodologies.
Simplicity
First, having to create accounts and wallets on two to three exchanges in order to purchase a single cryptocurrency massively limits mainstream usage. Plus, the inability to make cross-chain trades is greatly hampering investment.
Imagine being unable to transfer funds from your savings account into your checking account at your local bank. Instead, you’re forced to withdraw the funds and pay a fee, and then redeposit the funds with an additional fee. This system irks investors, and drives down mainstream application.
Crypto exchanges need to simplify these processes.
Scalability
Legacy banking methods provide substantial flexibility for institutional customers. Large scale transactions are generally well managed and clients are able to move substantial amounts rapidly between accounts and to other institutions.
Current exchanges lack this scalability, and instead limit transactions to the tens of thousands, at most. Those limitations are based on the need to comply with anti-money laundering laws. They are also due to many exchanges lacking the liquidity to make large-scale fiat to crypto transactions possible.
Reporting
Wallets and exchanges offer some level of reporting. However, legacy banking models create a number of reports that are extremely valuable for users, to which crypto exchanges should pay close attention.
Profit and loss statements from individual trades, specific profit statements and numerical tax information should all be provided to users in order to increase consumer confidence.
Discomfort
The massive valuation difference between GBTC and BTC should give some indication that the general populace is not comfortable yet with the complexities of buying Bitcoin.
Simplifying processes, increasing financial limitations, and providing more helpful reporting are all improvements that the crypto exchange community can take from traditional banking.
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