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Why without exchanges, cryptocurrencies have no value


May 16, 2018 Posted /  61 Views


Why without exchanges, cryptocurrencies have no value

Being in the background, the importance of cryptocurrency exchanges is never realized. But they are the most important factor for any cryptocurrency for the sake of their existence and impact in the market.

 

The importance of crypto exchanges:

When it comes to cryptocurrencies, there are a lot of elements which contribute to the status and fluctuations of crypto coins. Elements like market cap, stakeholders and exchanges play an important role. Mainly the demand and supply of coins are a major factor. But cryptocurrency exchanges are noteworthy in deciding the worth of cryptocurrencies. For both growth and generating curiosity exchanges can be of a great help to cryptocurrencies.

 

What is a cryptocurrency exchange?

To be precise, it provides the platform to connect buyers and sellers along with the facility to convert the fiat currencies into cryptocurrencies. Since everything comes with a price, even these exchanges charge fees for their services like a transaction.

 

How do they work?

Well, we all know that cryptocurrencies like Bitcoin are decentralized which means that there is no central authority controlling the flow. In fact, decentralized cryptocurrencies have given an example to the world that how decentralization can remove the power from a central authority and bestow the same power to the people who actually use it. Based on a distributed technology, such sort of decentralized exchanges just help to make orders for the traders and sellers, where unlike the centralized exchanges they do not take charge of the trader's funds. It surely acts as a matchmaker between the buyers and sellers, for which they suitably charge some fees.

 

Cryptocurrency exchanges are a game changer!

When an amateur decides to trade in cryptocurrencies, he basically tries to find the apt exchange which will help him to do so. Further, he will obviously go for a reputed exchange which will be secure, reputed, less risky, established and what is the trading volume. Exchanges do play an important role in the cryptocurrency scenario since they are the decisive factor for the fate of cryptocurrencies. Coming to another point, getting listed on a popular crypto exchange is a game-changing experience for any cryptocurrency. It becomes a big deal for the cryptocurrencies to raise their influence in the market as well as for the increase the level of their adoption, and listing helps them to make that impact. If a coin of some brilliant capacity is having the power to make it big, but it does not get listed on the exchanges, it might lose its shine. Getting listed is very important for cryptocurrencies to make an impact in the crypto world as it can change the level of adoption to increased heights. In case, any cryptocurrency does not have the access to liquidity then will it be of any use? Definitely no. It will be quite meaningless to even have one if you can't trade with it. Putting it into plain words, for the well-being of cryptocurrencies, it is important to get listed on exchanges so that they can give some competition to their peers.


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Tags: Cryptocurrencies crypto exchanges cryptocurrency exchange

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