Topic: Why do we need so many cryptocurrency exchanges? - page 2. (Read 12686 times)

Yobit managing around that number , do you really think several Yobits would cover all the bases in crypto exchanges?
most of the lats are just useless copies of the same idea , it is hardly 100 coins in total worth to be considered no shitcoins
the rest is made to earn money for the creators and in most cases they are useless
but since the whole market is new , the Darwin's principle is not working as of yet

Currently all exchanges are in full control of all the records of everything that happens on them. If they were to change something like a balance, how would you prove it? With us every action is signed by both parties private keys, forming what we call a personal blockchain, a chain of signatures between 2 parties agreeing on every action. This gives users the ability to prove foul play.

Example. if we were to steal funds the users would(and should) call us out publicly and show they had funds by revealing that part of their personal blockchain. It would then be on us to show that those users did something with their funds, if we cant provide the users signatures to show what they did with the funds then we are proven bad actors. The goal is that with this tech as the backbone of the exchange we disincentivize ourselves from doing anything remotely untrustworthy because we provide the tools to call us out.

I think the main reason is that there could not be an exchange with more than 1000 cryptocurrencies, each exchnage deals with BTC and ETH but then each one deals with different altcoins.
if it were easy to manage 500/600 different altcoins, few exchanges would be enough to cover the whole market, and frankly it would be much more convenient

Also to give more competition, as you said the crypto community is actually not in need of all these various exchanges however the appearances of many new exchanges could give competition that will definitely benefits us as a cryptocurrency users so there is nothing wrong with that, also that many exchanges could atleast find and exchange information about security I guess, so that's better.

It's not a discussion about the state of the market but exchanges as part of the general system. We need exchanges for Bitcoin to function properly, especially that in most places you can't pay your electricity bills in bitcoin, so mining is impossible without exchanging some of your coins into fiat, which makes exchanges an integral part of bitcoin.

I believe that we need many exchanges to have a choice. There's no free market without choices and competition and this is what we are trying to build here.

When I first entered the world of cryptocurrency in 2012, there were only two crypto-exchanges in existence (as per my knowledge). They were Mt Gox and BTC-e. The former was preferred by most of the users here, as the identity of the owner was known and the reputation of the exchange was good. On the other hand, BCT-e was famous for not asking any KYC information and it was considered shady. Newer exchanges such as Bitstamp and BTCChina came in to existence later.

The first shock came in 2014, when Mt Gox got robbed. Huge amounts of coins were stolen, and suddenly the users felt insecure about the exchange wallets. But I continued to trust BTC-e, and until mid-2015 I used to keep almost all of my Bitcoin holdings in the exchange wallet of BTC-e. After that I moved my coins to a Blockchain.info wallet.

After the Mt Gox robbery, there were a few high profile hacking incidents. The one that impacted me the most was the Sheep Marketplace robbery. I never had an account with SMP, but the fact that the robbery was an inside job (Tomáš Jiřikovský was the robber, and he was the owner of SMP) made me lose my trust with these exchanges and dark markets.

Nowadays I hardly ever use any of the exchanges. I don't have any significant holdings of altcoins, and another factor is that I don't want to undergo the KYC process. Only Bitstamp remains now, from the old times. But I have learnt my lesson during the last 7 years. Can't trust even Bitstamp.

Because they are offering different services and charges and this will benefits us all crypto traders and holders for having many options on where to trade ..

But we must be aware that only few from the list are legit and offers rightfully,many exchanges like Yobit whose scammers and many issues has been thrown thru the years so be careful

Why did you put this discussion topic into the discussion section of Bitcoin? I think it should be transferred to the market discussion

it is not "we" who decide how many exchanges are there to be opened
there is this thingy called capitalism and free market
if there is a profitable enterprise , it will always find its way to open and if it stops to be profitable it closes or is bankrupted
there are so many exchanges because it is crazily profitable - they are making money out of the thin air , they just provide a platform for people to trade and charge 0.05% + commission for every exchange , this is better than selling drugs or trading weapons , just because in this case you do not have to possess any asset

Will not be a big question and to see a huge number of exchanges exist now. That is we called a market competition, everyone wants to compete with others and so creating their own exchanges will they think that could be the best option to take.
There are some advantage and disadvantage to this,
Firstly, it gives us options. Second, it makes others exchange to bankrupt or having an exit scam. They can't take the competition and taking them into down.

This is business and everyone need profit. If we have one market then there will be someone in control about Price and demand but as because there are multiple markets so we can have used demand instead of an individual. So having multiple markets create multiple demands and multiple supplies making the market work.

Its businesses that tries to get their chip in this super volatile cryptomarket, except for decentralized exchange which have other purpose. Capturing a good volume means good business, good exposure and popularity. From a business point view i believe the profit rate of exchange is simply too good to ignore, automated fees and listing fees, and all you need a super good technical team with highly response support team.

We don't really need many exchanges if the one existing offers everything that their costumer are looking for. also having many Exchange sites bring competition which is good for the costumers because it drives the owners of the Exchange sites to give the best service they have to avoid losing costumers and reputation be ruined.

We do have so many exchanges right now I used to believe that  ICO based exchange is better ICO to invest, but was proven wrong after the IRONX fiasco and XERA exchanges, some people tried to set up an exchanged and launch an ICO without knowledge on how to set up one or even to market it, with a very stiff competition, weak and poorly managed exchange will close.

If i asking you why we need a lot of new cryptocurrency day by day? Crypto exchange platform is one of the best profitable business i think.
But i think we need only new potential and transparent exchange not more shit exchange. But still we have many reliable exchanges in the market.

We actually do not need that many but thinking about our current situation, it is actually good to have many Cryptocurrency Exchanges that can be available in different countries. Exchanges can handle different volumes of Cryptocurrencies depending on their servers. We can have many exchanges because every exchanges may have their own special feature and that feature might not be available on all the exchanges due to different founders and that is actually good because we can create our own decision to choose which exchange will give us more profit on transferring funds.

I personally think we don't need so many exchanges. There are too many exchanges in market but maximums security system are very low and as a result we see exchanges are hacking maximum times even binance are hacked recent days. So i suggest  low exchanger but strong security for all.

Why do we need lots of exchanges? the answer is because we need more references to trade. Then what exchanges will be of interest to many new users? the answer is that exchanges have small transaction costs, the minimum withdrawal is small and the most desirable is an exchange that does not require KYC for its users who want to trade on the exchange.

More crypto exchanges show more and more trade participants, where the amount of money in circulation is an indicator that crypto can be accepted in that country.
For traders, the increasing number of crypto exchanges means more choices for transactions because there will be competition by providing a lot of added value.

My thinking is different. If there are too many exchanges, then the revenue per exchange can drop. And since limited funds are available for the operations, the exchanges may cut back on safety measures. And this can increase the risk of them getting hacked. If there are a few large exchanges, then they can employ a lot of security measures to thwart hacking attempts.