What is different about cryptocurrency exchange?
What is different about cryptocurrency exchange?

While both the exchanges facilitate trading services across millions of accounts, their operations and setups are poles apart. While a conventional exchange carries out only swaps between several securities, stay out of the dealer/broker role and also never touch custody, crypto exchanges perform many roles instead. In crypto world, transactions of digital assets require the transactions to be performed on blockchain and storing the fund in a virtual wallet. These are some very unique features and factors that together make the cryptocurrency exchanges different.

Below are some basic differences between traditional exchange and cryptocurrency exchange:

Many functions Versus one

Centralized exchanges like Bitsmo or Binance engage various services required to synchronize digital asset trading. Each of the crypto exchange platform makes the most of order-matching engine in order to match sellers and buyers, process transactions and also verify accounts. In contrast to that, traditional exchange usually performs single service, does trading through order-matching engine. And, they never play the role of dealer or broker or even hold any funds.

Data centers versus cloud facilities

While conventional exchanges depend on gigantic data centers physically, crypto exchange platform run depending on cloud services, more specifically on Amazon Web Services (AWS). The benefit of using cloud facility is that the developers of the platform can spread the workload along with risks across several cloud environments. Using of multi-cloud facility also enables the access of wide-ranging locations, allowing the company to expand across the globe.

Profit and loss margins

One of the most essential differences is the increasing gap between profit and loss making margins, which actually exists on both the forms. Investment in stock markets needs a significant amount of patients because if you’re targeting a big profit, the process is usually slow in such case. On the other hand, crypto trading is different, for its highly volatile nature. Volatility helps because massive swing in the market value of the currency, thus makes a smooth way for the traders to expect more profits, scheduling the trades according to favourable market condition.

Universal reach

Digital currencies, with Bitcoin at the forefront, are dominating the global market. This apart, the global reach of this form of currency is constantly expanding. With incredibly lower transaction fees and fastest transfer processing, cryptocurrency sure is getting the control of world’s financial market in its grab.

In a nutshell, for this market being operating 24/7 and extremely volatile, becomes a considerable choice. If you are trying to push through a financial crisis situation or try a diversified yet secure investment opportunities, trade through the safest exchange, because NOT ALL EXCHANGES ARE A SAFE CALL. Bitsmo, in this case, is majorly working with Modulus Exchange for facilitating its users with trading services. Modulus Exchange, if you didn’t know, is one of the largest Cryptocurrency Exchange Companies in the world. Thus, making your first crypto-trade through us is no way an erroneous decision.

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