Cryptocurrency trading is becoming more and more popular every day. With the growing popularity of digital currencies, more people are becoming interested in trading them. Cryptocurrencies are digital currencies that use cryptography to secure financial transactions, prevent fraud, and check transaction validity.
Cryptocurrency trading is the process of buying and selling digital coins in trading markets or through exchange services. Cryptocurrencies are fast becoming the most popular investments for savvy investors. Thanks to the low fees on reliable exchanges such as Bitcoin Prime and mobile apps used to trade these currencies!
In this article, we discuss the top developments in cryptocurrency trading that have emerged since the beginning of the year.
- Improving Automation in Crypto Trading.
Since the beginning of the year, cryptocurrency trading has seen a boom in inactivity. To keep up with demand and improve customer experience, many trading platforms have begun adopting automation and machine learning.
Not only do these improvements help reduce manual processes, but they also increase customer satisfaction. Automation can lead to faster trade execution times, which results in a better user experience for traders.
- Crypto Exchanges Register Surge in Usage.
Cryptocurrency trading is becoming more popular and mainstream every day. More and more people are starting to trade digital currencies, thanks to the low fees and high volatility of the market.
One indicator that cryptocurrency trading is becoming a larger investment practice is the growth in the usage of crypto exchanges. In January 2018, there were only 438 active crypto exchanges worldwide. By mid-2018, there were 830 active crypto exchanges worldwide, according to CoinMarketCap data.
In January 2018, daily trading volume increased by 15% compared with 2017. Additionally, last month saw a surge in Bitcoin trading activity with a record-breaking number of trades on its first day of March bringing in over $5 billion worth of Bitcoin transactions.
- Institutional Investors Backing into Crypto.
This year has seen a significant increase in institutional investors entering the cryptocurrency market. A lot of institutions are now investing their money into Cryptocurrencies. One of the most recent examples is the pension fund of Norway’s $1 trillion wealth fund, which invested heavily in Bitcoin and other digital currencies.
The influx of institutional investors coming into the market has also had a considerable effect on cryptocurrency prices. Less than two weeks ago, Bitcoin’s valuation reached over $8,000 per coin for the first time.
Another important development this year is that more and more countries are starting to permit trading in Cryptocurrencies. For example, Japan recently legalized Bitcoin as a legal payment method after recognizing Cryptocurrencies as assets with “legal value.”
- Embracing Transparency in Crypto Trading.
Blockchain technology is the main component of cryptocurrency trading. The technology allows for transactions to be verified and recorded on a public ledger, which can be viewed by anyone with an internet connection.
However, the lack of transparency in cryptocurrency trading often leads to fraud. While investors want transparency, exchanges want to keep their trade secrets private. They don’t want competitors or other market participants to know how they operate and what they’re doing. One way these institutions are trying to disrupt this issue is by embracing transparency. For example, Coinbase is one of the largest cryptocurrency exchanges in the world and recently announced that they will now release all their trading data publicly to enhance investor confidence in the exchange.
Another example of this is Binance, a cryptocurrency exchange based out of China’s Tianjin province that launched back in July 2017. They have been at the forefront of offering 100 percent transparency by releasing their fee structure as well as their open-source code base and development logs for all public viewing on Github.
Transparency is important because it allows individuals who are unfamiliar with Cryptocurrencies to learn about them more easily and trust them more wholeheartedly when investing in them.
- E-commerce giant Alibaba to enter the market.
In April, Alibaba announced that they would be expanding their businesses into blockchain technology. In September, Alibaba announced that they would be using blockchain technology to help small businesses with their supply chain management by using smart contracts.
Alibaba is best known for its E-commerce website and mobile app, but it has also been branching out into other areas of the business world. It plans to adopt blockchain technology to simplify its transaction process. The company’s chief digital officer stated that the company will use blockchain “to streamline production processes for a wide range of industries, including manufacturing, agriculture, logistics and retailing”.
Cryptocurrency trading, as a whole, is becoming more popular and mainstream every day. With the latest developments in trading, there is no telling what the future holds. Stay up-to-date with the developments in the cryptocurrency market and get in on the action today!