5 Interesting Facts about Cryptocurrency Exchanges You Should Know In 2020
Digital currencies have already become part of our lives. Not a long time ago, only a small number of people understood how the entire system functions. However, things have changed a lot because their popularity started to grow. We are not here to claim that cryptocurrencies are going to take over traditional ones. There are not many insights that can confirm that statement. Yet, we can say for sure they are the future of the planet Earth.
That is the reason why the 21st century is special. Together with the development of online technology, we have also got many incredible inventions. Yet, it seems that people still hesitate to make their first investment. The reason why they hesitate is simple. They can read different information about the same subject that can sometimes be confusing.
Becoming a good investor is a process that lasts. You need to primarily invest a lot of effort to gather all the necessary information and improve your knowledge. Before everything, you should get familiar with all the digital currencies that exist in the world. That will allow you to pick the one that meets your requirements and expectations. After you do that, the next thing you have to do is to find the best Bitcoin trading platform. There are many of them online that come with identical or almost the same features. However, that doesn’t mean you should choose the first one you find. There are some points to consider when choosing a platform of that type. For instance, homebusinessmag.com analyzed the main features of a good Bitcoin trading platform. Articles like that are the best place to gather helpful information.
On the other hand, you should also strive to find some interesting facts about cryptocurrency exchanges. We prepared a couple of them that every crypto trader and investor should know. Let’s find them out together.
1. Binance Is Constantly Moving from One Place to Another
We are sure you have already heard about Binance. For those that do not know, Binance is one of the biggest crypto exchanges in the world. They are constantly moving from one country to another, and there is a good reason for that. When they started to operate, they were primarily stated in China. However, China changed its laws, and that move did not allow Binance to work legally. Because of that, they decided to move to Japan, but the laws were also a bit complex. They finally find their heaven on Earth in Malta that accepted the way how an exchange works. Believe it or not, the government of that country even greeted them on Twitter. It seems that this story got a happy end.
2. BearWhale’s Craziest Sell
One of the reasons why digital currency is popular is privacy. That is the reason why we will use the nickname BearWHale here. No one knows exactly who that person is. However, something we do know is that BearWHale managed to create the craziest sell ever. That happened in 2014. The guy or group of people under that name made a huge sell order. They/he sold 30 00 BTC and the price of each BTC was $300. However, the more fascinating thing is that the price of one BTC in that period was $350.
Of course, many BTC owners were afraid that BTC will lose value because of that price. That is the reason why all these coins were purchased for a couple of hours. Unfortunately, the predictions of the experts were correct. Only six hours after that, the value of BTC reduced to the one it had a few years before.
3. Centralized Exchanges Controls 99% of Transactions
There are two types of exchanges – centralized and decentralized. However, there is a good reason why centralized ones are more popular. They offer greater trading volume as well as higher liquidity. Because of that, they cover over 99% of transactions made between crypto users. On the other hand, we do not want to say that decentralized exchanges do not deserve your attention. Their main advantage is the security they provide. Unfortunately, the speed of transactions they offer is not at the highest level. Fortunately, some exchanges combine the advantages of both types.
4. Running a Crypto Exchange Is Profitable
There are different ways of how you can earn a lot of money with cryptos. In most cases, people will decide on trading. However, those that are highly skilled can try to run an exchange. It is not a secret that cryptocurrency exchanges are making a lot of money. More precisely, the top 10 crypto exchanges in the world earn around 62 million dollars on average per month. If we expand that list, you will see that the top 50 exchanges earn around 26 million dollars on average every month. We can all agree these numbers are serious. If you are familiar with the way how exchanges work, this could be a good option for you.
5. The First Bitcoin Exchange Started Working in 2010
Believe it or not, crypto exchanges exist for almost a decade. When we talk about Bitcoin, the first one started operating on January 15th, 2010. The name of that digital currency exchange is Bitcoinmarket. The owner of that exchange talked about the first exchange ever on the Bitcointalk forum. In that period, the price of one BTC was only $0.003.
That can be a good lesson for all the people in the world. You need to know how to recognize the business opportunity. No one expected the price of one BTC (and other altcoins) will grow that much. You should start exploring the crypto market and try to predict trends for the years to come.
We once again invite you to check the main features of good quality cryptocurrency exchanges. Choosing the right one can negatively influence your profit. That especially counts if the fees you have to pay for each transaction are high. Put all the essential points into consideration, improve your knowledge, and the results you want to achieve will sooner or later come.