2018 was shaping for the cryptocurrency market. While digital assets were decimated as Bitcoin collapsed 75%, it was altcoins that bore the brunt. Events of last year were natural. It was a correction that equalized the euphoria of late 2017, sobering the market.
But a notable observation was the entry of regulators and the explosion of instant cryptocurrency exchanges. Observed, the instant digital asset exchange, as a subsector, has grown by leaps and bounds over the last five years, capitalizing on the increasing crypto adoption. Spurred, instant digital currency exchanges ease the swapping of different cryptocurrencies.
Regulator’s Hand in the Cryptocurrency Market
As cryptocurrency adoption grows, the number of firms launching digital trading platforms has proportionally expanded. While most are from Asia but resort to setting bases in accommodative countries as Singapore, Malta and Liechtenstein, the number of instant digital currency exchanges offering irresistible services are also on the rise.
ShapeShift was the pioneer but by yielding to pressure from regulators, and implementing KYC, their transactions became transparent, jeopardizing user details and sealing off participation from privacy purists. This, according to Erik Voorhees, the CEO of ShapeShift, led to low business, forcing the exchange to structure.
Here is what he said:
“Business was declining from both aggregate market recession and increased competition. Our imposition of KYC’d accounts, themselves the result of trying to be cautious in a challenging regulatory environment, caused many of our most valuable API partners to leave us for competitors who have not perceived regulatory risks in the same way. We expected it, but still, it stung both financially and psychologically.”
Nonetheless, the demand for cryptocurrencies is on the rise. Coupled with apprehensive investors who aren’t willing to submit data to centralized platforms that are susceptible to hacking, alternatives are mushrooming for simple reasons.
Why non-KYC Instant Digital Exchanges are Popular
Privacy and anonymity are pivotal in instant cryptocurrency exchange. Losing that feature can be consequential. Instant exchanges that operate without KYC registration are attractive for a vast majority of users because of convenience. And your personal data are always can be stolen and used without the consent of an owner of a data.
Cryptocurrency investors and traders participate for nothing other than profit, not for nefarious purposes as insinuated. Therefore, swapping cryptocurrencies shouldn’t be a chore, nor should there be difficulties when transferring assets from one non-custodial wallet to another. The process, just like the exchange of crypto is originally meant to be, ought to be cheap, fast and glitch-free. However, the introduction of KYC is obviously a time-consuming impediment.
Also, a big turn off that catalyzed migration from leading instant exchanges was their decision to impose minimums. Understandably, in late 2017 and early 2018, exchanges could justify these limits because of high network fees. But times have changed, and network fees are negligible and there should be no reason for high minimums or any form of thresholds for customers to move their assets.
Additionally, users, regardless of experience, shift to alternatives because of poor customer service and absence of professionalism. Add that to speed and how executed transactions quickly update on the blockchain, fees involved and the number of supported cryptocurrencies.
Ordinarily, traders gravitate to an exchange that supports as many cryptocurrencies as possible. And this is understandable given the richness in diversity within the cryptocurrency space. Each token or coin has its own fundamental aspects that can adversely affect valuation. The ability to jump in and out between different blockchain without slippage via liquid instant digital asset exchanges that allow anonymous trading is important.
Competition is Stiff
The exodus is steady and the beneficiaries are a transparent alternative that promises low fees, supports a variety of cryptocurrencies without customer service quirks. Newcomers got it and made it.
One of them is Swapy. An instant digital asset exchange where users can trade across different markets without registration. Looks like team’s aim was to eliminate operational headaches and get higher liquidity with minimal slippages since Swapy’s algorithm automatically fetch tokens from an array of cryptocurrency exchanges, offering users the best rates. In this arrangement, Swapy charges a commission only when a trader saves on swaps. Otherwise, when their algorithm doesn’t retrieve the best rates, transactions are almost free.
Swapy also incorporates real-time analysis of the market depth of over ten connected standalone cryptocurrency exchanges. Therefore, a shrewd trader, availed with options, would ideally access approximately 50% more low cap coins and tokens at spot prices compared to those who trading from a standalone exchange. There are about 100 supported cryptocurrencies, and traders can actually stay on the loop every time they transact. On average, a transaction is settled within 15 minutes depending on the blockchain and confirmation times.
But it is not Swapy alone. Flyp.me has been lauded for their good user experience, easy-navigation and their no sign-up trading. Flyp.me supports 26 cryptocurrencies with decent average daily trading volume.
Then there is Coinswitch. Similar to other Swapy, there is no registration for use. However, unlike Flyp.me, the exchange aggregates data from among other leading exchanges. Nonetheless, users enjoy a wide variety of digital assets from the 45,000+ possible cryptocurrency pairs streamed in real-time from leading cryptocurrency exchanges including Huobi.
The cryptocurrency market is on a development treadmill. Traders and participants are more aware and demanding. As the pioneer exchanges adopt a KYC registration and verification model, purists are perpetually searching for privacy and anonymity-oriented options for coin swapping. Instant digital exchanges like Swapy, Flyp.me and Coinswitch are viable alternatives that provide traders with an unparalleled experience.