TOP 5 FINTECH FOR CRYPTOCURRENCY TRADING
What is cryptocurrency?
Cryptocurrency refers to digital or virtual currency secured by cryptography (encryption system) and cannot be counterfeited or double spent. Cryptocurrencies are often based on decentralized blockchain technology. Blockchain is a digital ledger system consisting of decentralized, publicly available ledgers called blocks, which are used to record transactions across a large number of computers. Basically, blockchain technology stores information chronologically and registers it on the basis of an open glass account, and is a technology that does not go through a decentralized or middle intermediary organization, so it creates the advantages of saving time, reducing the cost of commissions, and ensuring information transparency.
In this article, we present an overview of the top five cryptocurrency trading companies.
1. Coinbase
Web: www.coinbase.com
About
Coinbase is a cryptocurrency platform that allows you to buy, sell, and store cryptocurrencies such as Bitcoin. The company was founded in 2012 and as of March 2021 is the largest cryptocurrency exchange in the United States, by trading volume.
Fintech Model
Coinbase's business can be broken down into four main areas:
COINBASE & GDAX: Coinbase operates both a subscription asset exchange called the Global Digital Asset Exchange (GDAX) and a broker called Coinbase. Professional traders (such as crypto asset hedge funds) buy and sell crypto assets (cryptocurrencies) on GDAX, as well as determine the average market price. In this way, Coinbase (broker) allows small investors (individuals, retail traders, etc.) to buy and sell crypto assets at a set average market price, and works as a commission. Coinbase's broker buys crypto assets from GDAX rather than from external exchanges, creating a reliable and secure source of asset liquidity internally.
Coinbase's brokerage fees range from approximately 1.5% to 4.0% depending on the user's payment method; Credit cards have higher fees than bank transfers.
CUSTODY: A service that provides financial control, protection, and storage solutions for cryptocurrency trading to professional investors such as hedge funds, asset managers, and mutual funds. This service is designed for large Wall Street entrepreneurs known as Silicon Valley, with an initial setup fee of $100,000 AUM (assets under management) and a monthly balance of 10 basis points and a minimum balance of $10 million.
COINBASE WALLET: Coinbase Wallet is a user-managed cryptocurrency wallet and DApp (Decentralized applications) browser. This means that users' wallet private keys (which represent ownership of the cryptocurrency) are stored directly on the user's mobile device, rather than through a centralized exchange like Coinbase.com.
Key to success
Offers multiple Cryptocurrencies: Coinbase offers over 25 different cryptocurrencies for investment and trading.
User-friendly interface: The platform allows users to register and buy cryptocurrencies in a few minutes and offers an incentivized cryptocurrency training program for users who want to learn more about how cryptocurrencies work.
High Liquidity: Coinbase has consistently been named as one of the most liquid exchanges, which protects investors from price drops in a volatile market.
Coinbase has more than 43 million registered users from over 100 countries, of which 2.8 million regularly access the platform every month. Since its inception, it has traded 456 billion dollars and has a cryptocurrency valued at more than 90 billion dollars.
2. Robinhood
Web: www.robinhood.com
About
Robinhood, a financial services company based in Menlo Park, California, USA, is a platform that allows you to trade exchange-traded funds, securities, stocks, options and cryptocurrencies without paying any fees. As one of the top fintechs, the company allows its users to invest in a variety of cryptocurrencies, from Bitcoin to Litecoin, and with more than $500 million in funding, the company is currently one of the biggest financial players supporting blockchain technology.
Fintech Model
The main principle of Robinhood's income is to raise a small amount of money from the trading of users. In order to attract a large number of users, retain these users, increase the trading process and participation by using incentives such as free shares, commission-free trades, etc. For the order flow (PFOF) process, any order is sent to different parties for trading purposes, and the broker earns income from compensation and profit.
Also, in order to reduce the complexity of any information, they try to deliver only useful and important information to their users, and they aim to improve the information as much as possible. For example, the status of stock performance is displayed in a simple graph, and through the search menu, users can find information about all stocks.
User status is shown in green (positive) or red (negative) and users can view their portfolio overview. It is also possible to buy any stock with just 2 clicks and track your transactions, deposits and withdrawals from your account history.
Robinhood, on the other hand, offers behavioral incentives and rewards, one of which is free stock for new customers. There are usually stocks priced between $2.50 and $10.
Key to success
Trading costs are very low and small amounts of cryptocurrency can be traded: While most cryptocurrency platforms require a certain minimum, Robinhood allows you to trade small amounts of cryptocurrency.
Very simple and easy to use: Robinhood's mobile app and website are very easy to use
Instant Access to Deposits: Robinhood places users' cash in the market very efficiently, and all users have access to deposits, instant funding, and the user's purchasing power increases as soon as funds are deposited into their account.
The number of users of this app, which officially started its operation in 2015, increased from half a million in 2014 to 13 million in 2020.
3. Binance
Web: www.binance.com
About
Founded by software developer Changpeng Zhao, Binance is a cryptocurrency exchange that provides a multi-state cryptocurrency trading platform. As of April 2021, Binance is the world's largest cryptocurrency exchange by trading volume. Through the Binance platform, users can trade cryptocurrencies and many of the most commonly traded cryptocurrencies are supported. It also offers its own crypto wallet and has its own token currency Binance Coin (BNB).
Fintech Model
Like Standard Exchange, Binance offers cryptocurrency trading, listing, fundraising, and more. Also, cryptocurrency enthusiasts who want to issue their own tokens can raise funds through Binance's initial coin offerings (ICO).
To open a trading account, users must first meet KYC (Know Your Customer) security requirements. This includes ID verification, document verification, address proof, biometric verification, etc. After successfully opening a trading account, users can deposit their cryptocurrency into a wallet provided by Binance and start trading.
Binance supports three types of trade orders: Limit orders, Market orders, and Stop limit orders. Limit orders are executed only at the limit price set by the trader, market orders are executed at the highest possible market price, while stop limit orders are executed when the price reaches the specified level.
In addition to trading services, Binance offers other tools, platforms and services to support the blockchain ecosystem. The company also has a blockchain technology accelerator program called Binance Labs, which aims to develop promising early-stage ICO projects. This program helps cryptocurrency project teams by providing all necessary solutions such as funding, consulting, and fundraising exercises.
The company also launched a site called LaunchPad, where new blockchain projects and API interfaces can be hosted and implemented. As of March 2021, 42 projects have been implemented on the site.
Key to success
Over 180 types of cryptocurrencies: The market has a wide selection of cryptocurrencies that can be traded.
Low Fee: 0.1% of transaction
Multi-platform support: Web platforms, mobile apps - iOS, Android, macOS and Windows are all supported.
24/7 Staff Contact: 24/7 access to the Help Desk.
A variety of innovative products and services:
Binance JEX: Binance cryptocurrency futures and options trading platform.
Binance P2P Trading: Peer-to-peer crypto trading platform
Binance Crypto Loans: allows you to get loans with cryptocurrency collateral.
Binance Deposit: allows you to lend your cryptocurrency to earn interest on assets.
Binance Chain and Binance Coin (BNB): This public blockchain ecosystem is based on BNB and DEX.
Binance USD (BUSD) and Binance GBP stablecoin: Binance launched these regulated stablecoins in partnership with Paxos Trust Company.
Binance Charity: This charity is dedicated to global sustainable development and blockchain development.
Trust wallet: the official, decentralized and secure Binance wallet.
Binance Cloud: a cryptocurrency exchange solution for cryptocurrency operations
Binance Card: crypto payment card.
4. Ripple
Web: www.ripple.com
About
Ripple is a technology that acts as a cryptocurrency (XRP) and a digital payment network for any financial transaction. Computer programmers Chris Larsen and Jed McCaleb founded Ripple Labs Inc. in 2012. International financial institutions such as American Express, BBVA, and BMO are making payments through the platform's secure blockchain network.
Fintech Model
Ripple consists of two separate parts: XRP and RippleNet. While XRP is considered a cryptocurrency, RippleNet is a payment platform that enables low-fee money transfers for businesses such as banks and financial institutions. All of Ripple's products use its own currency, XRP, and another product, xRapid, uses XRP as a "bridge asset" between two different currencies for businesses and financial institutions. In other words, financial institutions can buy an amount of XRP equivalent to that amount and send it to other enterprises through the Ripple network. Ripple calls it a "third-party liquidity provider" and says it's ideal for banks that aren't connected to each other.
XRP cannot be mined like Bitcoin or Etherium because only 100 billion of them were originally produced. About 50 billion of these are held in cryptographically secured escrow accounts (an escrow account means that when a transaction is made between two or more parties, a trusted third party holds the funds in a trust account until the contract is executed). Ripple Labs issues up to 1 billion XRP once a month and sells them to crypto exchanges and investors, and if they cannot sell all of them, they move the coins back to an escrow account. Since 2016, Ripple has sold more than $890 million worth of XRP, of which 36% was sold to crypto exchanges and 64% to financial institutions.
The cryptocurrency has a market capitalization of about $13 billion, the third largest after Bitcoin and Ethereum, but that's just the coins in circulation. Ripple.com reported that if the 100 billion XRP owned by Ripple Labs and the XRP in escrow accounts were added, the market capitalization would be $31 billion.
Key to success
Fast Transactions: RippleLabs promises to complete transactions in just four seconds. The average Bitcoin transaction takes 60 minutes, while Ethereum takes two or more minutes. In addition to speed, Ripple's network handles a relatively high volume of transactions. While Bitcoin can handle 7 and Ethereum 15 transactions per second respectively, Ripple's network regularly processes around 1,500 transactions per second and is said to be capable of reaching 50,000.
Low Fees: The average transaction fee for XRP is $0.0002 and has reached a maximum of $0.42. Ripple is currently trading at $1.32 per coin. Some market researchers believe that it will cost $1,000 in the next 10 years.
Influential partners and investors: Some of the biggest partners include American Express, Santander and MoneyGram.
5. Gemini
Web: www.gemini.com
About
Launched in the United States in 2014, Gemini is a private, licensed digital asset exchange that offers custodian services for digital assets and has successfully expanded to Europe and Asia.
Fintech Model
Gemini allows its users to buy, sell, store and exchange primary cryptocurrencies such as bitcoin and fiat currency (a government-issued currency that has no intrinsic value). Gemini does not offer margin trading, requiring full funding of any order, and does not allow short-term trading. It offers a variety of limit orders that allow users to trade in a way that suits their needs. These include standard limit orders, Immediate-or-Cancel, Maker-or-Cancel, and Auction-Only limit orders. Currently, purchases cannot be made using credit cards, debit cards, cash, or checks, and the buyer must use their bank account via wire transfer or ACH transaction (business-to-consumer, government-to-consumer electronic transfer).
In addition to being a cryptocurrency exchange, Gemini also offers custodial services to its customers and is licensed by the New York Department of Financial Services (NYDFS) to hold digital assets in trust on behalf of customers.
Casual users are offered a no-fee, deposit account type, while large corporate users can choose an account type that is protected by a special storage system that is offline, secure, and auditable. The service is for a fee and is suitable for institutional clients such as mutual funds, exchange-traded funds and hedge funds.
Key to success
International coverage: Currently operating in all US states except Nevada and Hawaii, UK, Puerto Rico, Singapore, Hong Kong and South Korea.
Customer Support: FAQ section and Gemini Exchange blog. In addition, customer issues are resolved via email and are responded to within a few hours.
Multi-Factor Security: The platform's wallet is FDIC insured and 2-factor authentication makes user accounts unhackable. Crypto wallets are stored in our internal storage or Amazon Web Services, with high security measures
Эх сурвалж:
Cryptocurrency Definition - Investopedia
Decentralized application - Wikipedia
What is an escrow account? - Escrow.com
ACH Transfers: What Are They and How Do They Work?
35 Top Blockchain Companies In 2021 | Built In