In 2008, an anonymous internet user under the pseudonym Satoshi Nakamoto changed the way we view currency ever again. Through their propositional post on a popular cryptography blog, they gave birth to the concept of cryptocurrency. The denomination named as Bitcoin would go on to create ripples in a global transactional model. Subsequently, a horde of cryptocurrency exchange platforms cropped up to facilitate a seamless and transparent exchange of these denominations.
What Is Cryptocurrency?
Cryptocurrency is a decentralized digital asset designed to wrest more control in the hands of the bearers. The rigid centralization of the prevalent traditional banking model has given unprecedented popularity to the philosophy of cryptocurrency. Not only does it invalidate the commissions that a central banking model levies on its users, but it also ensures transparency. Additionally, with the help of blockchain and Bitcoin mining technologies the entire structure is kept incredibly secure.
A simple blockchain comprises three basic components. These components are data, hash, and the hash of the previous transaction. Hash is a unique entity that is the propriety of each independent transaction that takes place in the cryptocurrency scenario. Every new hash creation results in it pointing to the next subsequent hash in the network. Any attempts at tampering the existent hash cause it to mutate which subsequently reflects on the entire network. Under these characteristics, blockchain technology doubles up as a digital ledger of sorts. Only, now its maintenance is run by all the traders in the network rather than one centralized authority.
Bitcoin Mining Explained
Additionally, the concept of Bitcoin mining offers a transparent way of procuring Bitcoins. This is because Bitcoin miners act in the capacity of transactional auditors and that assures greater security within the cryptocurrency network. Bitcoin miners often indulge in pool mining wherein they proportionately split the spoils at the end of the mining activity. Bitcoin mining entails its own dedicated hardware and software arrangements that can be easily accessible.
What Are Cryptocurrency Exchange Platforms?
A growing increase in the endorsement and usage of cryptocurrency led to the inception of multiple crypto exchange platforms. A cryptocurrency exchange platform can be a market maker that takes bid and ask spreads as a commission for its service or, as a matching platform that can charge fees for the services it provides, or even provide service at no cost.
A cryptocurrency exchange, in essence, is a business model that hinges around the concept of digital currency exchange. This enables bearers to trade cryptocurrencies or digital currencies for resources such as fiat money or other digital currencies.
The concepts around which the crypto exchange platforms operate vary, but one of the concepts is an extension of both brick-and-mortar ventures as well as professional online businesses. These exchanges generally entail credit card payments, wire transfers, and other concomitant forms in order to procure other cryptocurrencies. An individual user’s cryptocurrency wallet monitors these particular cryptocurrency exchanges.
The cryptocurrency exchange platform generally works under two broad mechanisms. One is a centralized mechanism that involves the employment of digital currency providers. The second kind is an entirely decentralized mechanism that facilitates the entire operation of a peer-to-peer model of cryptocurrency trading.
Cryptocurrency Exchanges Supported By Torex.One Crypto Trading Platform
Torex is a multifunctional blockchain trading platform. It consolidates multiple exchanges, coins, and analytical tools in one integrated platform. Torex has developed several crypto trading tools that support multiple cryptocurrency exchanges:
- Torex Trade functionality (API-trading feature with Stop Loss, Take Profit, and Trailing Stop techniques implemented) is compatible with Binance, Bittrex, BKEX, Crex24, Coinsbit, Huobi, Poloniex, Bitfinex and KuCoin;
- Torex Arbitrage Tool is compatible with Binance, Bittrex, BKEX, Crex24, Coinsbit, Huobi, Poloniex, Bitfinex, and KuCoin;
- Torex Price Checker is compatible with Binance, Bittrex, BKEX, Coinsbit, Crex24, Huobi, Poloniex, Bitfinex, and KuCoin;
- Torex Price Notification is compatible with Binance, Bittrex, Bitfinex, BKEX, Coinsbit, Crex24, Huobi, KuCoin, Kraken and Poloniex crypto exchanges.
The following section aims to briefly describe some of the cryptocurrency exchanges that are compatible with some Torex crypto trading tools –
As of January 2018, Binance has established itself as the largest cryptocurrency exchanges in the world in terms of volume. Developer Changpeng Zhao who was previously responsible for creating high-frequency trading software helmed Binance’s foundation as well. Binance’s spot market capitalization stands at $1.5 billion as of now. In association with three other exchanges, it is also responsible for raising a whopping $32 million for the “stable coin” project. This endeavor was undertaken with a view of combating Bitcoin’s infamous volatility and to stabilize other associated digital assets. It has collaborated with Simplex to facilitate debit and credit cards-based cryptocurrency transactions as a new endeavour.
Founded in 2013 by Bill Shahara and a couple of other cybersecurity engineers, Bittrex is a Seattle based crypto exchange. The growing popularity of Bittrex is majorly owed to the lowest bank card deposits that it was able to facilitate. Bittrex’s brand of path-breaking industrial solutions all revolve itself largely around the vastly secure blockchain technology. Among other existent cryptocurrency exchange platforms, Bittrex has carved its niche as an increasingly robust one. They are well known for accommodating a heavy demand while simultaneously enabling a real-time order execution. The Trustworthy Technologies Act mandates all of Bittrex’s operational activities and lends it to its functional framework. The compliance team is responsible for KYC and Anti-Money laundering reviews.
Headquartered in Hong Kong and founded in 2012, iFinex Inc. owns and operates Bitfinex. Bitfinex operates closely with its own brand of cryptocurrency called “Tether” which claims to be hitched onto the US dollar. While Bitfinex has often found itself in deep waters regarding its banking relationships and security protocols, it has stabilized recently. Price manipulation of Bitcoin is a phenomenon that Bitfinex finds itself increasingly associated with. In late 2017, this occurrence was said to have accounted for about half of the price increase for Bitcoin. Bitfinex is among the largest exponents of margin trading and token sales in terms of trading.
Founded in 2013 by Leon Li, Huobi is a Singapore based cryptocurrency exchange platform. In the operational segment, Huobi is often referred to as a blockchain consulting and research platform. In this vein, they have actively contributed to digital asset research initiatives and projects in partnership with Tsinghua University. They have processed around $1 billion in daily trades as of March 2018.
KuCoin is an exchange trading platform that focuses on globalization deployment. As a matter of fact, it appears to be a platform that extends to other denominations of cryptocurrency as well. Notable among them include Ethereum, Litecoin, Ripple, and KCS. KuCoin’s official website also actively represents the real-time market fluctuations of all these different types of currencies. This feature is insightful for traders who wish to keep a roving eye on all of their trading activities. The KuCoin community is another factor that KuCoin capitalizes upon in order to boost its usage. It facilitates discussion through an online forum encompassing all continents. Thus KuCoin aims to not only exist as a trading platform but also has an inclusive community.
The global KuCoin community is highly receptive to the queries and grievances of its vast network of traders. The website also advertises a number of business avenues for interested parties. Enrollment in these ventures is seemingly transparent, entails minimal red tape but of course would be done at one’s own wise discretion. Opportunities that are visible on the website include Token Listing, Investment & Incubation, Spotlight Application, and KuCloud services. Additionally, they also offer market maker incentive programs and global ambassador programs to further their entrepreneurial reach.
Among the prevalent cryptocurrency exchange platforms, Poloniex harvests wide-spread popularity for its asset exchange programs involving lending of cryptocurrency to earn interest. Apart from being a stellar platform for budding cryptocurrency traders, this platform can be considered by institutional investors.
Under its institutional program, Poloniex offers a wide bevy of services and professional perks in contrast to its individual accounts. The head of an institution can gain access to a Poloniex institutional account simply by furnishing the certificate of incorporation. Poloniex’s client service department allocates a separate and dedicated team of account managers for its institutional traders. Additionally, all of these traders are given independent API access and a whitelisting security feature for their accounts.
The Poloniex website has a “Poloni Dex” section that lends some modularity to the platform as a whole. Upon here the traders are exposed to a wide range of exchange and token listing avenues. The Poloniex global community encourages active deliberation on topics that concern cryptocurrency in general and trading platforms in particular. Its specially designed HTTP APIs and flexible web sockets allow for easy automation of an end trader’s cryptocurrency trading activities. The website also gives insight into a comparative visualization of annual lending rates across different currencies. These vary from asset to asset and are based on a rolling average 7 day volume-weighted APR rate per asset.
A Viable Alternative
Even with the growing emergence of multiple cryptocurrency exchange platforms, the domain of cryptocurrency is still increasingly obscure. Its concept of active decentralization receives active endorsements from traders of all walks of life. At a time when blockchain and Bitcoin mining technologies are receiving massive investments, cryptocurrency’s functional scope has appreciable potential. Cryptocurrency exchange platforms such as Torex and its associated compatible exchanges continuously strive to provide interested parties with smooth trading services. All of this has reflected positively in the fact that the user base of cryptocurrency trading keeps proliferating rather exponentially. So, you must make an objective assessment of the pros and cons before going into crypto trading.