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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Crypto Currency Exchange Market

Blockchain fuses the security of cryptography, the storage and transmission of data in the coded frame, with the peer-to-peer networks to make a mutual database of exchanges that is trusted, yet controlled by no one.

In case that Blockchain discover the uses as a part of different businesses we could see an all the more digitally coordinated global economy, something that could improve the financial growth and decrease the poverty.

Hundreds of Exchanges have been started

Major Bitcoin as well as the cryptocurrency exchanging platform in the global market has been including more than 100000 users for each day.

A large number of the main cryptocurrency exchanges, for example, Binance, Coinbase (GDAX), Bittrex, Kraken and Bitstamp have battled in managing the sudden surge in the demand for the cryptocurrencies. A few exchanges have re-designd their frameworks to enhance their versatility, while others have incidentally stopped opening new user accounts.

Unexpected growth rate

Changpeng Zhao, the organizer and the CEO of the Binance, the global market’s biggest cryptocurrency exchange with an amazing $9.5 bln daily exchanging volume, exposed that it has included more than 250000 users in just one day.

In December, both Coinbase and Kraken assigned a noteworthy part of their resources and capital in enhancing the customer support and the adaptability of their platforms. On Dec. 23, Kraken, which has discovered trouble in the account confirmations, unveiled that it has executed significant framework updates and upgrades in execution and will keep on developing its trading platform to support the new users.

In the next couple of months, worldwide cryptocurrency exchanges will roll out some drastic improvements to their frameworks. Until then, the users, particularly newcomers, will think that it’s hard to open the approved trading user accounts.

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Hybrid Cryptocurrency Exchange: Moving Towards A Better Future

Today, there are more than 500 crypto exchanges around the globe and the number continues to grow with every passing week.

A cryptocurrency exchange is an online platform that allows you to exchange a fiat currency for a crypto asset or one digital currency for another. As crypto trading grows, an increasing number of companies are developing more advanced and secure crypto exchange software.

However, not all crypto exchanges are made equal. While most crypto exchanges, such as Coinbase and Bitfinex are centralized, there are a few decentralized exchanges too, such as RuDex and Waves Dex. Recently, a third type of crypto exchange has emerged that is making headlines in the crypto world. It is called a hybrid cryptocurrency exchange.

Read on to more about hybrid crypto exchanges.

1. Evolution of Cryptocurrency Exchanges

The idea of crypto exchanges began with peer-to-peer trading of cryptocurrency, giving rise to decentralized exchanges (DEX). As decentralized exchanges don’t need a middleman, the cost of transaction and trading fees are next to none.

They are also far more secure. However, as trading transactions take longer to process, most DEXs lack liquidity. They also have laxed KYC and AML verifications, and are not regulated.

Cryptocurrency exchanges (CEX), just like their traditional counterparts, act as intermediaries. So, they charge trading and transaction fees. As a centralized white label crypto exchange has to follow KYC and AML regulations, most CEXs are legal and regulated. They are also easy to use.

Recently, hybrid exchanges seem to have taken off.

2. What Are Hybrid Cryptocurrency Exchanges (HEX)?

A hybrid exchange offers the perfect combination of centralized and decentralized platforms.

CEX + DEX = HEX

These exchanges aim to provide speed, legal compliance, and liquidity of a centralized exchange along with the security of a decentralized exchange. You will be able to enjoy all the perks of a CEX while trading directly from your hardware wallet as a DEX does.

Right now there are only a handful of hybrid exchanges such as Next and Eidoo. However, as various companies have started developing hybrid white label exchange software, we will see new platforms emerge in 2019 and beyond.

3. Why Hybrid Exchange Alternative?

One of the primary reasons why the trend is shifting towards hybrid exchanges is to provide the best possible functionality with enhanced security.

CEXs are vulnerable to cyberattacks. As the CEXs act like intermediaries, investors are required to trust them for keeping their funds and identity safe. They don’t have any control and custody over their funds. In other words, hackers can steal hard-earned funds from traders although exchanges get hacked. In a recent cyberattack on Coincheck, a Tokyo-based cryptocurrency exchange, cybercriminals stole crypto assets worth almost $533 million.

Most centralized exchanges, especially the ones that are not regulated, are also notorious for engaging in front-running. Front-running involves exchanges inserting their own orders first in anticipation of big price movements. This considerably undermines the trading capabilities of individual traders.

DEXs, on the other hand, lack liquidity as they are not suitable for institutional investors. That’s why many crypto experts are exploring the possibilities hybrid exchanges can offer.

4. Benefits of Hybrid Cryptocurrency Exchanges

Hybrid cryptocurrency exchanges offer a few stellar benefits to both, individual and institutional investors.

• They bridge the gap between DEXs and CEXs in terms of functionality, regulation, and transparency. It’s a win-win for everyone.
• They provide access to the real-time trading process for individual traders.
• You can integrate existing conventional trading solutions into the exchange platform using blockchain infrastructure.
• Users can enjoy a transaction speed as fast as or better than CEXs. It applies to both, crypto-to-crypto and crypto-to-fiat currency transactions.
• Traders get access to an extensive array of trading tools that provide better reliability, modularity, and scalability.
• Traders will not need to keep their funds on the exchange. Thus, their crypto money will be less vulnerable to cyber attacks.
• Users don’t need to manage two sets of credentials as most HEXs require a synchronized identity model.

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Everything You Need to Know about P2P Cryptocurrency Exchanges

Crypto trading is the bedrock of the global cryptocurrency market. To complete the four critical aspects of trading including capital deposits, order books, order matching, and asset exchange, you have to use a cryptocurrency exchange platform. Most regular exchanges use a centralized white-label crypto exchange to process transactions.

While centralized exchanges are quick and easy to use, they are often susceptible to technical failures, cyberattacks, and theft. This is where peer-to-peer (P2P) or decentralized crypto exchanges come in. They allow the seller and the buyer to complete a transaction directly without the need of a trusted third party.

P2P exchanges are steadily gaining momentum in the crypto community. For example, Paxful, a popular peer-to-peer crypto exchange, gained a trading volume of $739 million in 2018, up by 130% in transaction volume from $320 million in 2017.

A. How P2P Exchange Works

A P2P crypto exchange does not rely on a third-party service to hold the customer’s funds. As buyers and sellers can directly exchange cryptocurrencies, there is no need for an individual or institutional middleman. It is a striking example of the blockchain ideology, which is the backbone of crypto.

A P2P system runs exclusively as cryptocurrency exchange software. Usually, a preprogrammed set of instructions carries out each transaction automatically. Unlike a centralized exchange, a P2P exchange matches the people behind buy/sell orders instead of matching buy/sell orders in the ledger.

So, when the software finds a matching buy-and-sell order, it connects the respective traders with each other. They can process the transaction without an intermediary. You can to involve third-party arbitrators only in case of a dispute. However, by default, there is no human intervention on behalf of the exchange.

B. The Transition from CEX to P2P Exchange

Although centralized exchanges (CEX) provide a gateway between the real-world market (fiat currency) and crypto economy, they are vulnerable to frauds and cyberattacks. You also need to maintain a substantial amount of time, money, and labor to create paperwork and carry out daily transactions. Essentially, traders have to pay for this infrastructure in the form of transaction fees and service charges.

The transition from centralized exchanges to P2P exchanges took place to provide a better alternative to the traditional centralized trading system. They are way more simplified, trustless, transparent, and cost-effective compared to the CEXs.

C. Advantages of P2P Exchange

P2P exchanges offer several advantages that attract many crypto advocates. Some of the notable benefits include

1. Low Transaction Cost

It cuts out the central authorities creating a trustless ecosystem of crypto trading. As a result, you don’t have to shell out hefty transaction fees and other services charges. As P2P exchanges are simple software, the overhead costs are negligible.

2. No Government Censorship

As there are no middlemen involved, P2P exchanges offer high resistance to transaction censorship. Government authorities can’t exploit such exchanges like the CEXs by imposing regulations as there is no central authority. Thus, anyone can trade on a P2P exchange.

3. Privacy

Unlike centralized crypto exchanges, most P2P exchanges aren’t required to conform to AML and KYC regulations. In other words, you don’t have to share personal information such as place of residence and ID number. So, your trading activity remains private. There is also no risk of identity theft.

4. Security

Security is perhaps the biggest benefit of P2P exchanges as you don’t have to entrust your crypto coins to a third party. According to a recent estimate, exchanges suffered a total loss of $882 million due to targeted attacks in 2017 and in the first three quarters of 2018. Most attacks exploited the security vulnerabilities in the centralized hot wallets of the exchange. However, as no hot wallets are required in P2P exchanges, they offer better security.

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