The arrival of cryptocurrency into the financial industry at first seems strange and many initially got scared away. Later the same innovation gradually diffused its originality and effectiveness into people’s mind and they perceived it as the salvager of the longtime anomalies in the financial world.
Afterward, the technology, which was the first to introduce blockchain to the world progressively moved closer to mainstream adoption and people started using it as a mean of storing wealth and performing transactions. Still, cryptocurrency had some impediment which affects its acceptance pace.
Eloping the effect of crypto exchanges on digital currencies, many have highlighted some features which might have been hindering the success of the currency across the globe.
Insecurity, resulting from hacks and scams associated with the currency, volatility in value, and beefs from regulations and authorities due to its decentralization, amongst others were parts of the things people raised.
Musing over the effect of crypto exchanges on the innovation, one would realize that it plays a major role in the success of cryptocurrency.
Even though exchange platforms help to step up the popularity of coins by giving them more exposure, some of their activities still sabotage the success of cryptocurrency in the space.
High Listing Charges On Centralized Exchanges
Centralized exchanges have seen themselves as the El-Dorado of coins, and they see this an opportunity. Before listing a coin on an exchange, a certain amount is paid, roughly $100,000 or more.
This could be regarded as a harsh condition, especially for the small and upcoming coins in the space. Instead of directing funds raised through ICO and other means towards the development of the cryptocurrency, they are forced to first pay exchanges so that they can be listed for more popularity.
While cryptocurrency are also faced with the challenges of upgrading their trading volume so that they can compete with others in the crypto space, they still have to tackle the challenge of being listed, with dough. Definitely those which cannot afford the pay will lose getting listed, and this may send them back to nonexistence.
High Transaction And Conversion Fee.
Despite charging cryptocurrency for listing, exchange platforms still seek other means to run their activities.
For most exchanges, a particular rate is attached to every transaction or conversion from one cryptocurrency to another. This would have attracted no issue if the fees are all considerable. Although bestrate.org offers users the ability to choose which platform have the best exchange rate, but it is still crystal clear that there are a number of platforms that charge high transaction fee, and this can deter people from using cryptocurrency for transactions and storing wealth.
As time roles, exchanges lacking in trust are going to wade out of the cryptocurrency space, while those with potentials will stay and calm the stress of crypto lovers.