Which Sign Up & Login Options Are Optimal For A White label Cryptocurrency Exchange?

It is a well-known fact that holding your funds on a cryptocurrency exchange is not the safest option but offers cash liquidity and that is exactly what you need when trading.

I’ll explain in this article how you can protect yourself using various methods available.

I’ll explain in this article how you can protect yourself using various methods available. Remember, however, that not all of these mechanisms are available on every cryptocurrency exchange software.

A. Sign Up should be a Task of Few Taps

Subscriptions should be simple. A lot of users get irritated by filling out a long registration form, which is now a standard in every digital assets exchange. This could affect the trading platform’s initial retention rate. Let your users input the app, and then you can collect the information you need to enhance the user experience. Here are just a few tips and examples for mastering page design: UX’s thumb rule says’ More choices, more problems.’ So make it easy for users to get started using the app. Cryptocurrency exchange software are obliged by their local laws and respective national regulators of financial services and products to obtain some of your personal information. This information includes, but is not limited to, your full name, address, phone number (mobile and/or landline) and country of residence. On top of that, most bitcoin exchanges require you to fill in your date of birth, which is part of the identity verification process.

If your app is responsive to gender or age, avoid asking the users about it when they sign up. When handling their profiles they will change this information later on.

Just like their social media accounts, always offer the users an option to sign-in emails. There are at least 5 social media accounts open to an average Internet user. To simplify the email validation process, let your users sign up via their social media accounts.

You will give them more faith about the value of the product by showing the customer reviews before the user signs up for your app.

B. Use Email as Alternate to Username

It is hard to remember a username with a mix of random numbers. That is why it is a good idea just to let the users in through their email address and password.

Logging in via email also has a security benefit for most white label crypto currency exchange software. The username is available to all when using a device. This may be a bonus to those with prying eyes on a user’s account and could result into malicious activities, including illegitimate fund transfer. On the other hand, email addresses without a user’s permission are not available to others. And most of the time there are various addresses exchanged and emails used for sign in.

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How Atomic Swap Technology Is Revolutionizing Cryptocurrency Exchanges

Owing to increasing awareness and changing government perception, the cryptocurrency ecosystem is expanding rapidly. It now boasts hundreds of white-label crypto exchanges with more than 2000 digital coins and a market cap of $142 billion. Most exchanges, however, use a centralized cryptocurrency trading software or system.

Although the number of centralized exchanges (CEXs) far exceeds decentralized (DEX) ones, they are not safe. Centralized crypto exchanges face a constant threat of cyber hacks, unexpected shutdowns, and government seizures. In the first half of 2018 alone, cybercriminals managed to steal $1.1 billion worth of cryptocurrency.

So, is there a better alternative to CEXs?

Enter Atomic Swaps.

This blockchain-based technology has the potential to offer an efficient, secure, and fast peer-to-peer alternative to exchange crypto assets. It promises to provide a fully self-governing cryptosphere that hardcore crypto users have been dreaming of from the beginning.

Read on to know more about Atomic Swaps and their impact on centralized crypto exchanges.

1. How Do Atomic Swaps Work?

Atomic swap involves a peer-to-peer exchange of cryptocurrencies without the need of a crypto exchange. Users have complete control over their digital assets throughout the transfer as there is no third party involved.

There are two types of Atomic Swaps.

a. On-Chain Atomic Swap

It is processed on the respective blockchains of each digital coin. However, both cryptocurrencies need to support HTLC and should have the same cryptographic hashing algorithm.

b. Off-Chain (Cross-Chain) Swap

It takes place off the blockchain via off-chain payment channels that are offshoots of the main blockchain. The two cryptocurrencies also need the Lightning Network, a second layer payment protocol, to complete an off-chain atomic swap. One of the first off-chain atomic swaps took place in September 2017 between Decred and Litecoin.

Here’s how it works –

Atomic Swap uses a smart contract called Hash Time-locked Contract (HTLC) to facilitate the crypto asset transfer. For example, A wants to sell 5 Bitcoins for 10 Ethereum coins from B, who in turn, wants to buy 5 Bitcoins in exchange for 10 Ethereum coins. Both will need to open up a payment channel based on Lightning Network to complete the trade.

Let’s say, person A generates a number only they know to create a cryptographic hash using a HTLC and deposits 5 Bitcoins in it. Here, the cryptographic hash acts as a lock while the number is the key. When B receives the hash created by A, they send the 10 Ethereum coins back using the same cryptographic hash. Now, A unlocks this hash as they already have the key.

Upon receiving the 10 Ethereum coins, A reveals the key to B so that they can obtain the 5 Bitcoins and complete the trade. However, this is a time-bound smart contract. If A fails to provide the key to B, the 10 Ethereum coins will go back to B’s account and the trade will be automatically cancelled.

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How Security Token Exchange Work?

How STO Exchange Works?

Security tokens are here to stay long, and 2018 has already proved to becoming the buildup year for tokenization of securities and assets. New security token exchanges are emerging with passing time. But there are very few regulated STO exchanges owing to the lack of liquidity. Here liquidity indicates how easily and steadily assets or tokens could be purchased and sold on the market.

Here we will understand how STO exchange works and what functionalities enable compliant trading of security tokens. Let’s begin with little about the background of security tokens.

What is security tokens?

It’s just a digital asset complying to securities regulations. It is issued on the blockchain digitally. Since security tokens are definite financial securities, your tokens are backed by something tangible like the shares in a company, assets, profits, real estate or fine art, and crowd-funding backed assets.

Why security tokens?

If you tokenize private securities, it will let you trade assets more smoothly on a secondary market. You will be free from the administrator burdens of traditional securities. If we talk about the existing private security market, it is in the trillions. It is anticipated that the existing liquidity discounts would be as high as 20 to 30%.

Security token also offers advantages like no middle-man, increased inclusivity, rapid execution of deals, and much more.

Partner at Morgan Creek Blockchain Capital and frequent commentator on security tokens Anthony Pompliano stated that,

“Security tokens bring a number of improvements to traditional financial products by removing the middleman from investment transactions (usually some form of a banker). The removal of middlemen leads to lower fees, faster deal execution, free market exposure, larger potential investor base, automated service functions, and lack of financial institution manipulation.”

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Undisputable Benefits Of Centralized Exchange

Centralized Cryptocurrency Exchanges are online platforms that are used to buy and sell cryptocurrency. These are the most common ways that investors use to buy and sell assets for the cryptocurrency.

Some investors find the concept of ‘centralized’ exchange somewhat misleading, with digital currency often being called ‘decentralized.’ In that case, what does ‘centralized’ mean and why are these exchanges so crucial to the success of the cryptocurrency industry as a whole? Let’s first understand a centralized cryptocurrency exchange.

What is Centralized Exchange

The centralized exchange is an online platform and the most common way to exchange crypto-currencies. Centralized exchanges (often referred to as “CEX”) are managed by an organization that oversees its daily operations, such as security, growth, and maintenance. A centralized exchange business model is like that of a traditional exchange that charges trading costs for market access. This type of exchange acts as a third-party mediator that connects buyers and sellers.

Undisputable Benefits Of Centralized Exchange

Statistics

A centralized exchange is a business entity that offers users a trading platform while monitoring transactions, checking order books and ensuring compliance with local regulations. By entering into a centralized exchange, you communicate with a third party, the company that manages the exchange.

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