How Crypto Platforms Are Adapting To New Realities - Binaryx Example
Due to the explosive growth of cryptocurrencies, new users are gravitating toward crypto platforms. In turn, the competition between exchanges has increased, and young exchanges must introduce innovative products to compete with the big players. To understand the added pressure on newly launched crypto trading platforms, we decided to use Binaryx, a digital asset exchange, as a case study. So, we contacted the team to find out how they managed to attract and retain users. We also talked about their plans for 2021. Below are our findings.
Cryptocurrency Market Rises Despite Coronavirus Effects
Binaryx focuses on establishing a user-centric design for trading. As such, it has developed a suite of services suitable for experienced and new traders. Notably, Binaryx’s approach borders on security, flexibility, and efficiency. Its management and development teams are always looking for ways to optimize users' trading experience and adhering to the highest standards.
Hence, it is easy to see why the Estonian-based startup has emerged as a promising exchange platforms. The trading website has not only introduced intuitive trading infrastructures. It has also delivered an organic and viable way of enabling high liquidity. And With cryptocurrencies gaining traction after a tumultuous year in the traditional markets because of the impact on COVID-19, the exchange plans to expand its offering and attract more clients.
2020 was a very eventful year for the startup. Due to its penchant for introducing innovative solutions, the exchange successfully created a transparent and improved liquidity-focused system. It also launched a new matching engine and optimized its wallet services. Likewise, Binaryx unveiled a new spot trading terminal and released a dashboard for its clients. Their design was recognized by the Horizon Interactive Awards jury, which awarded them a silver award in the Bank / Finance category.
How Does Binaryx Provide Liquidity to Its Growing Trading Community?
Although Binaryx has its own liquidity, it also aggregates liquidity from established exchanges in Tokyo, Singapore, and Ukraine. These exchanges supply price feeds that update their order books.
As a result, it utilizes a unique order book unlike those used by DeFi protocols like Uniswap. This system allows scalable and fast price discovery. Through their smart algorithms and balancers, Binaryx's clients receive up-to-date exchange rates enabling instant buying and selling without arbitrage.
Binaryx Security Efforts
The project team understands that security is one of the top priorities of every cryptocurrency participant. Therefore, Binaryx pays special attention to the safety of its users. In just under a year of operation, the platform has achieved the following security milestones.
- Binaryx is aware hackers continue to exploit exchanges' defenses by taking advantage of clients’ vulnerabilities, especially those who do not have access to 2FA protection. In light of this, it implemented 2-Factor Authentication on July 5, 2020.
- Binaryx teamed up with 10Guards, a cybersecurity company, and developed multi-level access to servers, files, and workstations.
- To combat physical intrusion, their offices in Ukraine and Estonia are fitted with necessary security provisions, including the latest safeguarding technologies.
- They also use fireproof multi-signature cold wallets to secure their funds.
Listing More Crypto Pairs and Trading Features
Moving forward, Binaryx plans to activate crypto futures and commodities CFD in Q1 2021. With this, clients can use leverage and earn more from their digital assets.
Futures are derivatives that allow traders to buy or sell cryptocurrencies at a specified price within a given period. Usually, derivatives platforms supporting cryptocurrency futures support leverage.
CFDs are popular in the trading community. They allow traders to benefit from the volatility of the underlying assets without holding them. From a security and logistical standpoint, users are safer when not handling underlying assets.
The team stated:
"Our goal is to give users a wide range of assets to trade. More assets means more opportunities to make money. We are constantly working on listing new assets and creating new trading pairs. The company plans to reach 300 trading pairs by the end of 2021."
Crypto trading education is another vital and commendable aspect of the Binaryx ecosystem. "Continuous improvement of knowledge is the key to success in any field, including cryptocurrency and trading, says the Binaryx team. “We understand how important it is for beginners to understand the fundamentals of an increasingly expanding concept like cryptocurrency. That is why we created the Binaryx Academy together with our experts."
The Binaryx Academy is a portal where traders, regardless of their experience, can learn more about cryptocurrency and trading.
The lessons are broken down into three categories – Beginner, Middle, and Hero. Hence, the academy is suitable for all types of traders regardless of experience.
For instance, new users can find information about the basics of crypto trading and best practices under the “Beginner” section. More advanced learning resources that border on how to purchase Bitcoin, blockchain guides and the fundamentals of cryptocurrency are available for the Middle class. Binaryx also plans to launch more lessons dedicated to trading.
Binaryx believes that it is crucial to create an ecosystem around the exchange. At the moment, the platform consists of the following:
- A cryptocurrency storage wallet
- A module for fast exchange of cryptocurrencies,
- An academy,
- A trading terminal, white label solutions,
- A blog loaded with the latest news and useful materials from the world of cryptocurrencies.
Competition among exchanges is beneficial to users, as it encourages smaller exchangers to adapt better to the needs of users. While market leaders can’t be flexible and adaptive, small exchanges offer higher level of customization and pay more attention to every user.
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