Overcoming Crypto Exchange Development Challenge

Crypto Exchange Challenge

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A cryptocurrency is what you call a digital asset. It uses highly advanced cryptography in order to manage currency creation, transfer verification and transactions. It’s a general term that defines many cryptocurrencies out there like bitcoin, ethereum, satoshi and many more. It’s a very promising currency that more and more people are starting to use and accept.

Proof of that is an increasing number of people that are using it. Proof of that is the acceptance of forex to these cryptocurrencies and you can easily trade in it in the various forex platform. Ideally, it aimed to be the currency of the future, that is not bound to any country and its respected laws. But why is that despite its milestones over the years and growing popularity, it still not has achieved its ultimate goal?

1. Most people don’t understand cryptocurrency

If you ask people on the street what cryptocurrency is, most probably they can tell you what it is. But if you go to the more technical question, that is where their answers start to get shallow. Even if people understand that crypto is a type of currency, there are some that don’t know how it works. Like its limits, the blockchain and so on. The public still needs to understand how it works. If you compare it to the current currencies that various countries are using it’s not as simple. You have to realize that not all people have an interest in talking about crypto all day. Some are into other stuff and would want their currency to be as simple as possible.

2. It’s still not that mainstream

Undeniably cryptocurrencies are mainstream and the proof of that is the number of people that knew about it. Crypto is still all about trading. Sure, there are already establishments that are accepting cryptocurrency but not all. In fact, the majority of things that you buy are still not accepting crypto. There are even countries that don’t have that option yet. All they have available in their country for crypto is for trading and nothing more.

3. Security is a concern

Some people invested in cryptocurrency because of security; Although the fact is, crypto is indeed secure. The problem is that it’s not the security that some users are hoping for. Some users expect it to be untraceable and their transactions are hidden. For cryptocurrency, the security was liquidation and visibility through blockchain. Blockchain was designed to be cracked with the right tools and not many people are happy about it. Why? Because most people are uncomfortable to make other people see their banking activity and they have the same feelings with crypto transactions as well..

4. It’s expensive to mine

There is a revolution when cryptocurrency exploded and that is by means of mining. Many people have tried it and many have failed. Not just because cryptos are hard to mine but because crypto is costly to mine as well. It needs powerful computers with powerful graphics cards. It’s an electricity vampire and will require a regulated cooling space. If you’re in a country that’s in the tropics or its summer season, chances are your electricity bills will be higher (much higher) than your profit in bitcoin. This is the reason why some people only mine bitcoin seasonally or they have to relocate their mining activity in cool places.

5. Trading isn’t with other currencies

Although in various forex platforms where trading crypto is now possible, it’s still not available to trade with other currencies that are out there. Crypto has a different place of its own and that can be a limitation. The good thing about this is that there are various forex platforms out there that are enticing people through rewards and bonuses to try out crypto trading in their platform.

6. IDs are hard to memorize

Bitcoin ID is a series of alphanumeric combinations and it’s hard to memorize it. There are many simplified ways that various companies use for anyone to easily remember their ID just like a phone number or email. But with crypto its long and complicated and that’s prone to error. Only the very brave people would dare to memorize and type it every time they try to send money to someone.

7. You can’t recover what was sent

Since the crypto ID is rather long, it’s prone to error and there have been instances where people sent their crypto to the wrong ID. The problem? The transactions are final and that can never be reversed. That sucks considering that currently, 1 bitcoin is equivalent to 9,298.71 USD. Imagine if you sent that to the wrong person? This is the reason why you really need to check the ID where your money should be sent. Double-check to even triple check it especially if you’re sending cryptos to multiple people at the same time.

8. It’s prone to hacking

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Most people will tell you that crypto is safe and yet it has been proven that indeed it can be cracked ad many people still got hacked. This is very concerning considering that cryptos have always been advertised as safe by experts and well-invested people into the crypto platform. You should also know that hacking is uncommon with crypto since hacking requires very special hardware, software, and skill which most hackers don’t have (unless you’re the government).

9. Lack of endorsement

Not all countries are talking about the future of bitcoin. The UN isn’t talking to it as most experts would hope. It’s not because many people don’t take crypto very seriously but simply because not all countries are talking and interested in it. Which further limits its potential. Thus it will require more work and persuasion.

10. It has an earlier bad reputation

Although in various forex platforms where trading crypto is now possible, it’s still not available to trade with other currencies that are out there. Crypto has a different place of its own and that can be a limitation. The good thing about this is that there are various forex platforms out there that are enticing people through rewards and bonuses to try out crypto trading in their platform.

11. How to overcome the challenges of crypto exchange

  • Most people don’t understand cryptocurrency but there are a ton of learning materials that people can search for free online.
  • Cryptocurrency is still not mainstream but people are slowly accepting it. It might not get an overnight success but slowly and surely it’s getting there.
  • Security is a concern because some people don’t like how the encryption supposedly makes everything in blockchain safe and secure. But the fact is that it does its job well.
  • It’s expensive to mine but, you can always invest in mining sites that offer a passive income even in countries and places that are not ideal for mining.
  • Trading with other currencies is still not possible unless it’s with other cryptos. Still, if you want to convert it to your local currency, some platforms do it.
  • IDs are hard to memorize but one has to understand that it’s one of the security features. When people check on the blockchain, these IDs are what people will see and not your name, email, social security or phone number.
  • You cannot recover what was sent but all sites that offer a crypto transfer service has a copy and paste option to easily and accurately input the correct IDs. So, errors are pretty minimal. Besides, you can always double-check and triple check before you press send.
  • It’s prone to hacking but there’s really no reason why you will get hacked. Why? Because blockchain is decentralized and the transaction details can already be accessed by anyone. Even if it’s hackable, it does require a dam good hacker to crack it.
  • Lack of endorsement might have slowed crypto from becoming mainstream, but there are icons today from business, technology to finance that are believers of it. You should hear what they are saying about it. Because so far everything that they said has come true.
  • Crypto has an earlier bad reputation and so does other known currencies. It can be used whatever you want because it is simply a currency.

The fact of the matter is that cryptos are still a hot topic to this day. People are still talking about it. The issue is that there are not as many people talking about it as it should. It already got past what people called “the bubble” and yet it still hasn’t conquered the world as its experts are expecting. There are many factors to this, just like the ones mentioned above. The time for cryptos will surely come indeed, it is just taking its time slowly but surely.

AUTHOR

About the Author

Author Yia Yung LeeAntonio Campos

Antonio is very enthusiast about Biodiversity Protection, Rainforest Conservation and Sustainable Development of Local Communities. He has been with AMAcoin, a digital currency that is driven by a social-environmental mission.

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