Bitcoin started in 2008 as the first cryptocurrency to succeed using blockchain technology. A lot of skepticism has ensued over the years about its validity. There have also been backlashes from the public over its damaging effect on the economy. However, bitcoin has gained enormous popularity because of the market value it has reached over the years. Presently, it is one of the most valuable assets. With its rise in popularity and bitcoin price,several other cryptocurrencies known as Altcoins have also risen significantly in value.
With the rise in bitcoin and altcoins, particularly following 2017, it became important to have platforms that allowed for exchange in the cryptocurrency space. This seemly problem led to the sudden boom in crypto exchanges. A crypto exchange like gate.io serves as an online platform that acts as a marketplace or bank. It allows people to purchase cryptocurrency, sell them, exchange them for another, and keep or store them.
Why Else Are Crypto Exchanges Booming?
Given the volatility seen in price movements, crypto exchanges also capitalize on that factor in making profits for themselves. Generally, due to the fear created whenever there is a downtrend in the market. Many people sell off their assets to manage losses and return to buy again when these assets are now on an uptrend, hoping to make profits. The little profits gained upon transactions are part of what is known as gas fees. It allows crypto exchanges to make money off the buying and selling activities on the platform.
What Are Crypto Exchange Features?
Another feature offered by some crypto exchanges, similar to the world of conventional financial institutions, is the concept of Futures. So, with normal currencies and the need for international transactions, there is a market known as the Foreign Exchange market, Forex for short. The principle behind this market is based on the demand and supply of a certain currency pair.For instance, there can be a pairing of US dollars and British Pounds. Depending on the demand for a certain currency, throughout the day, price fluctuations begin to happen as soon as the market is open, and traders can profit off these price movements. People has to even explore the values before starting it.
In the world of cryptocurrency, the Futures option offered by crypto exchanges allows crypto traders to make trades using the price volatility seen. These trades are, however, riskier than just acquiring assets. Some prices signify profits and others that signify losses. The assets are taken off the market with profits and immediately transferred back to the owner. While during a loss, assets are taken off the market, and they now belong to the crypto exchanges.This process is known as liquidation. And it is similar to what is seen in the forex market of gate.io.
By providing a platform where exchange can occur within the world of cryptocurrency, crypto exchanges have become a rather profitable venture. They leverage on providing security, safety, and ease of use. The several features offered by these platforms are monetized to return a great deal of profit daily. These profits increase with the number of transactions within these platforms and the popularity of these platforms. There is further more information to grasp. It can be explored easily when you are in the right platform.