May 15, 2021

How wallet platforms are taking on exchanges

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One of the biggest trends in recent months has seen Bitcoin flow out of exchanges into wallets. Generally, this is interpreted as a bullish sign — indicating that investors are optimistic about further growth in cryptocurrency prices. 

But delve deeper, and there’s more to this than meets the eye. The crypto industry has grown immeasurably over recent years — making stars out of a number of exchanges. Platforms such as Binance and Coinbase now handle billions of dollars in trading volumes every day. With this come concerns that centralization is creeping in — and fears that major exchanges are becoming the titans of the industry, just like big banks dominate the world of traditional finance.

Exchanges do have downsides. Binance and Coinbase have both suffered outages when Bitcoin surges — and in some cases, this has left traders unable to execute transactions in a timely fashion. Such breaks can prove to be extremely expensive, as a lack of immediate access can mean users are unable to buy and sell at optimal prices. 

Another bigTitle: How wallet platforms are taking on exchanges
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Published Date: Thu, 04 Mar 2021 11:14:00 +0000