Draining Liquidity from the Cryptocurrency Exchange in the Form of Trading FeesJune 23, 2019
Kaspersky recently stated, “Several people who thought what they were dealing with later decided not to use the cryptocurrency.”
The lack of understanding will lead to lack of trust in consumers. In a survey, 35% of them believed that crypto is nothing more than a fad, and they are not interested in bothering about it.
A cybersecurity report on cryptocurrency opined, “Cryptocurrency certainly has its benefits; however, several consumers are not aware of what the benefits are as they are overly concerned over security and how the technology works. It is an exciting industry to be involved in; it is built upon trust. It is, therefore, imperative that cryptocurrency businesses do everything possible to protect their networks and to ensure that their customers’ finances are safe and secure.”
Only very few people understand how cryptocurrencies work. About 29% of participants in a survey stated that they only have “some knowledge” of digital currencies.
The adoption of cryptocurrencies has been delayed due to lack of knowledge concerning cryptocurrencies on the consumer’s side. The knowledge gap among customers has had several people decide against not buying the crypto coins. About 18% of them thought digital currencies are technically very complicated.
Despite all the naysaying and widespread issues with the mainstream adoption of cryptocurrencies, there is a high demand for cryptocurrencies. About 14% of participants in a survey stated they would like to buy some in the future though they do not currently hold it.
There has been a recent explosion of the numbers of cryptocurrency exchanges. This has created a situation where cryptocurrency companies are being forced to get creative about the way they are. Several platforms which emerged in 2018 had trouble gaining traction. However, several cryptocurrencies which were launched in 2019 learned from their mistakes, and they are differentiating everything.
Several exchanges have been trying hard to differentiate themselves from their rivals; they are trying to be innovative to establish a market share which will last the course.
Adam Todd recently stated, “This creates highly liquid markets where the most active traders are encouraged to create liquidity instead of being penalized by commissions. On top of that, by not constantly draining liquidity from the exchange in the form of trading fees, traders on our exchange have a much higher chance of winning because that money is instead available to be won by other traders.”