Anchorage announces layoffs amidst regulatory uncertainty
Another cryptocurrency firm has announced that it will be reducing its workforce to better focus resources.
Cryptocurrencies have been the talk of the financial town for quite some time now. When Satoshi Nakamoto released the white paper to the blockchain-based Bitcoin a brand new industry of digital tender was born. When it comes to money – in any form – two of the questions immediately raised are “how can I get it? and “where can I spend it?”
There are two answers to each of those questions:
The short answer is that you could mine it – if it is mineable like Bitcoin – or you could buy it from a cryptocurrency exchange.
You can use your cryptocurrency tokens to purchase from service and product providers who accept the digital currency. You can also “spend” your tokens at a cryptocurrency exchange to trade it for local fiat currency or to change it to another token. For example, you could trade your Bitcoin for Ethereum at an exchange which offers both currencies.
The common answer to both of these questions relates to the function of a crypto exchange
A cryptocurrency exchange is similar to a stock exchange, but with a focus on cryptocurrency tokens rather than stock trades. Essentially, a crypto exchange offers a platform whereby customers looking to buy and sell cryptocurrency assets can exchange the digital tokens in values based on current market prices.
Usually, exchange platforms allow transactions or trades to take place in forms such as:
Some cryptocurrency exchanges offer a platform which is focused on ease for the customer, some hope to offer competitive pricing and others want to provide a platform which professional cryptocurrency traders can use.
There are three different types of cryptocurrency exchanges:
Known as a traditional cryptocurrency exchange, this is a cryptocurrency platform governed by a company of central organisation which offers cryptocurrency trades from either fiat-to-cryptocurrency or crypto-to-crypto tender.
A decentralized exchange – also referred to as a DEX – acts as an alternative to a traditional, centralized exchange. This type of cryptocurrency platform does not depend on a company or a service to control the assets of a customer. Instead, the trades or transactions are controlled by an automated process without any central presence. These trades are considered peer-to-peer or customer-to-customer.
Using blockchain technology, the decentralized exchanges are built to ensure there is a secure way for the transfer of cryptocurrencies without any central figure. Essentially the platform acts as a service which connects trade orders with one another to serve customers looking to exchange tokens. Most decentralised exchanges operate using Ethereum’s blockchain in order to conduct services through the use of smart contracts.
Both versions of the cryptocurrency platform have pros and cons within their method of offering cryptocurrency trading
A hybrid cryptocurrency exchange is a combination – as the name implies – of both centralized and decentralized exchanges. Taking the best from platform concepts, a hybrid exchange offers the trustless nature combined with the low latency and fast transaction speeds of centralized platforms.
Like decentralised exchanges, a hybrid makes use of smart contracts to ensure that there is no central figure imposing on the integrity of the trade. Basically, this reduces security risks and puts the safety of a customer’s assets onto a blockchain rather than relying on a company.
At the time of writing, the biggest cryptocurrency exchanges in terms of the market cap according to CoinMarketCap are as follows:
“Binance DEX is a decentralized exchange with a decentralized network of nodes, where you hold your own private keys and manage your own wallet. With Binance DEX, we provide a different balance of security, freedom, and ease-of-use, where you take more responsibility and are in more control of your assets.”
Another cryptocurrency firm has announced that it will be reducing its workforce to better focus resources.
With leading banks that service crypto closing down, what other options do crypto firms have for finances? In this, we explore.
The cryptocurrency-friendly Signature Bank and its former executives are being sued by shareholders for alleged fraud and misleading claims.
The UK government has stepped in with an emergency plan to rescue the affected companies from the collapse of Silicon Valley Bank.