LIMASSOL, Cyprus, Dec. 17, 2020– In recent years, the cryptocurrency sector has been battling both poor liquidity on many exchanges and continuous security risks. In 2020 alone, three major exchanges suffered security breaches, including Kucoin, which thankfully recovered 84% of the stolen currency. This has led many users to explore the world of decentralized finance and decentralized exchanges in an effort to have more control over their finances.
The one major limitation of decentralized exchanges (DEXs) includes limitations around user functionality, such as setting limit orders (at least on most DEXs). Additionally, the learning curve is much steeper on DEXs compared to centralized exchanges. Due to this, the demand for centralized exchanges is still very high and is likely to continue for the foreseeable future.
Back To the Basics
The common problems seen in the world of centralized exchanges are being taken head-on by IronX, which has developed an interface to allow for the trading of both traditional assets and cryptocurrency. They also offer their native IRX tokens, which come with a number of benefits when used on their multiple platforms, including the IronFX Group trading platform and the IronX Platform. The latter offers many traditional trading instruments such as spot trading and futures trading.
The Future of Exchange Technology
As tech-forward as cryptocurrency is, there is a need to make crypto trading technology accessible and easy to use for customers. Those who do not have prior crypto trading experience might be discouraged or confused by some of the existing technical architecture.
This is where IronX shines, by offering an interface that is very easy to understand even for novice users. Among the features offered by the IronX platform are global-level transactions, error detection, fail-safe modes, encrypted Transport Layer Security (TLS) connections, and 2-factor authentication.
There are also significant security measures taken by IronX. For example, new deposits are sent to cold wallets and only a fraction of customer funds are kept in other wallets. Even for these, there is an internal operating procedure that ensures no security breaches. Trading pairs are executed using an advanced technology system that benefits all.
Tackling Liquidity Problems
A dominant problem in cryptocurrency is the fact that many crypto exchanges do not have sufficient liquidity to create dynamic markets that are attractive for counterparties looking to trade a digital asset. This might seem like a small issue, but it is prevalent among many new crypto exchanges and the end result is that buyers are skeptical about trading on them due to the lack of assurance. This lack of liquidity also means that traders can experience massive slippage in their trades.
IronX has focused its solution on avoiding this issue by creating a dynamic platform for both traditional and crypto-assets. The exchange boasts of a high level of liquidity as well as fast buyer and seller update speeds. Transactions are confirmed and updated at a pace of 1 million transactions per second, almost unheard of in the industry.
Restrictions on Currency
Fiat currency is still dominant across the globe despite the rise of cryptocurrencies. This means that new entrants into the market will likely be seeking fiat onramps to exchange fiat into cryptocurrency. If an exchange does not allow for deposits in fiat currency they risk losing out on a large portion of potential crypto traders who are new to the market. This has traditionally been one of the greatest differentiators between average exchanges and more popular exchanges.
IronX has recognized this and has responded by creating a platform that allows for seamless fiat withdrawals and deposits, supported by the fact that the platform allows for both crypto and traditional asset trading.
With all these resources in place, IronX is not just solidifying its place within the crypto industry but also providing benefits for its customers.
“Innovation can stem either from a future-oriented outlook or when problems emerge but it is the end-user who will benefit and that is an ideal situation. With more and more organizations joining the ranks, it is on them to provide the convenience of easy trading, liquidity, security, and flexibility,” says Yuki Terai Director of IronX Sales in Japan.