Bitcoin Forum

 A week ago i've met a person, who's working on a new exchange. They've  been developing it for a couple of yers now and, from his words, it  seemed pretty cool. I can't say for sure whether i think it's a legit  idea or not. So, Is it possible for a new exchange to make it to the  top  or is it already monopolized and new projects and busineses are doomed in the whole industry?

In my humble opinion, it IS possible, but that exchange should have enourmous benefits over existing exchanges.
I beleive all of the existing exchanges are pretty outdated and there's a lot of room for improvement. Binance won't be n1 for long, if they won't improve asap

What's the name of that new exchange?

Please, open those thread in the discussion section not in currency exchange.
We have enough spam here believe me.

Depends on how the exchange is made. If it is some normal exchange, then high chances are that they will be struggling to capture the market. Why would someone use their exchange where are already dozens of well known better exchanges out there? The new exchange should provide sometime unique that what is currently available. They should focus on improving the flaws which are found at the current exchanges like shitty interface/customer support.

its Really  possible but it will depend on how serious the team will be .. If they can put quality   and high security features which is second to none then they can compete to take the lead ..

Ofc not, If thats true, no one would bother starting projects and businesses, and that applies in general. A business isn't just about launching it as it is not steady, there are ups and downs, therefore profits gained won't be stable.

To give you an example, have a look at binance, they entered the market in 2017 (based from whois data) and still managed to be on the top (or one of the top?) and there was a time when most ppl use poloniex and bittrex which is the opposite of now. But then again, binance had the money to start which most new exchange lacks.

Getting an exchange platform to the top requires a lot of resources. When you have money you have the power.
Looking at the situation your buddy should rather focus to be consistent and to build the trust and that isn't something to gain.  The site will naturally grow and become popular if it's a serious one.

Yes it's possible but why aim for the top quickly if you can do it step by step through gaining audience and traders trust first. This is what mostly the thinking of people that creating an exchange can give them decent return. The market is crowded with too many exchanges competing each other but focus more with the volume and through that you can gain that title up to the if that exchange of your friend really deserves it. If he's serious about it, he would make it a real business complete with set of requirements passed through their local authority.

What is the target market for the exchange? If it aims to provide services to a specific country which doesn't have any major exchange yet, then the probability of it to succeed and become a major player will be very high. I think it will become like Coins.ph or Indodax. But if it aims to compete with Binance or others exchange it will be very difficult to do.

Less than two years ago Binance didn't exist. Look at it now. If you'd proposed in 2017 somewhere brand new would dominate no one would've believed you.

It's definitely possible. I don't know what went right for Binance that didn't for other exchanges though. It's impossible to predict what customers will latch on to and what they won't.

What they did right is ignore local regulations and aggressively onboard as many users as possible, and they took care of the support side, which is another department other exchanges are severely lacking.

I think the very fact that CZ is CEO and founder of Binance is another important factor, especially with his role over at OKCoin before Binance was a thing. He knows what an exchange needs in order to be successful, has the contacts within this space, and knows how to attract market makers, and it clearly shows.

All the respect to how he runs his business. Perhaps that Binance one day will live up to its 'Coinbase killer' status.

Unless that particular person is willing to spend a ton of money on promoting, have a company that is registered in real life, and their exchange is able to provide pseudoanonymous accounts to people who aren't necessarily willing to verify their accounts, then no.

I think that the exchange space has honestly become quite saturated and this point, with Binance obviously holding the majority of the market share.

It'll be quite hard to take over that spot, or any other major exchanges for that matter, unless something major comes up. Just like how Binance took advantage of the downfall of poloniex and Bittrex, though even then, the marketing efforts that are needed are just way too costly to be afforded by any average exchange.

If you want a new exchange project to success then you have to come with new ideas or new concepts, there is a lot of examples look at Bittrex and polo they remained number 1 for a lot of traders until Binance came and took their places and if Binance will not always update and develop another exchange will come and take the lead from it. To be successful you need to offer a new idea and to be constant in offering news things or else you will be gone in no time.  Now for the most important thing which is the timing you need to be careful when choosing the timing of the launch, for example, launching right now in this market condition will be just suicide.

Looking at the state of the exchange ecosystem — being dominated by the top guys, it looks as if the space is saturated. However, there is enough space for everyone to thrive, but competing with the likes of binance shouldn't be the priority. In the same manner, just last week, I saw news of two exchanges closing down their services until further notice simply because they could not keep up with the running costs. Gunning for a place is not a problem, but staying afloat in this harsh market should be a priority. As long as your friend get it right, that spot shouldn't be hard to reach.

Everything is possible, Binance example is the best proof of it. When they started market was already full of exchanges, but somehow they become biggest exchange in the market  in very short time. New exchanges appear in market very often, but only few of them become successful and popular. There are so many factors matters. But basically new exchange have to offer something new what other exchanges don't have or do business at better level. Otherwise there are no chance to compete with top exchanges. But I'm not sure that now it's best time to start new crypto exchange when crypto markets are bleeding.

There were a few factors.

They were in the right place at the right time. At a time when Poloniex was shedding customers due to horrible lag, Binance offered a far superior trading engine. At a time when Bittrex was adding mandatory KYC, Binance let you withdraw $15,000+ a day with no documents.

Their rise was further reinforced by the BNB token's success. BNB benefited from the ICO bubble but also incentivized people to trade at Binance. It created a feedback loop.

One would think so, but still, quite a significant number of people continue to look for shitty exchanges while Binance by far is the best available option. It's retarded if you think about it, but it's the reality here.

I think that people like the idea of buying unknown coins the larger exchanges haven't listed yet. In most cases when these coins end up being listed, they pump hard and that may very well be what people are after. Greed it is.

People will only realize that it's foolish to use these exchanges when they go down with all of their funds. Unfortunately, losing funds is the only way people come to sense....

We are operating one of the exchanges that was recently launched and basically have near 0 volume at this moment. So as someone who is quite familiar with the topic I can tell you that we feel quite optimistic even though we just started our way.

However, people must realize that it's a nearly impossible proper exchange "on budget". If the exchange wants to survive it needs to have a physical office, it needs full-time employees that know what they are doing and now, when there is established competition, it needs a solid marketing budget. Having unique features can also be a driver up. The current market is in nowhere near to be considered monopolized, but it is already in the shape where only professionals can survive.

I think if exchange have really greate customer support and they do some trading competitions with really great prizes then yes there is place in market for them . Thats the 2 main reasons most of the exchanges suck , they freeze funds and then you wait for 1-2 weeks to get answer from them . Binance so far is 1 of the best exchanges out there followed by Coinbase in my opinion . Communication with community is the key

I completely agree. Customer support and communication with customers is key for anyone who is willing to survive. Looking at the subject from the side of the exchange I can tell it's not an easy feat to achieve but neither security procedures nor size can be an excuse for being silent with the customer for a week. Customer first. Always.

Not sure if i should give up the name like that, but i hope he won't mind, it's Nominex

They are going to ake everyhting 100% legal and get registered not in an offshore country

Definately agree. Customer support is one of their main priorities

Yes, it can. F.e. changenow - it's not so old exchange service if I'm not mistaken, but it's a quite popular

i heared that changenow is already  a scam . that is the problem of new exchange , they attract people as much as they can and if people already earned thier  trust  that is also the time that they will exit .

you guys must be careful and dont easily trust new exchange . if you are eager to try them , dont put big amounts  . deposit only amount that you can afford to loose  . stay safe   ,

It might be really difficult at this time to introduce the new exchange though the scope can exists that in their country if their is no local good exchange than it can help to capture the local market. internationally it requires a lot of huge investment in the security and other features so might not be easy .

I'm using it for a quite long time, without problems

Any exchange can be a scam. What do you say about Bittrex? They held my funds for some time without a reason, but now, fortunately, this is in the past. As for ChangeNOW, I have used it many times, and I see an advantage in that they do not require registration.

Yes, it's a quite young, but good service

Hey there,

We understand your concern, but rest assured that the situation which involved a certain amount of scam accusations against us has been resolved and all the necessary steps have been taken to ensure that it never happens again - our KYC checks are now opt-out, so, if you wish to maintain your privacy, you can refuse with a refund, no strings attached.

of course a new exchange can come onto the market and also gain a foothold.
however, with the quantity of projects it is difficult to appear serious and also to have enough stamina not to disappear immediately again in the sinking  :)

Again, there are already exchanges that dominate the provision of these widely "unknown" trading pairs as well.

Even though theoretically you could still make a new exchange, list new coins that no one else has listed, and in turn get some trading volume, it's going to cost a lot of money and effort. Who is going to come to your exchange to list their coins when there are tons of better alternatives?

I think that it's possible with lots of funding, a good team, actual innovation and entering in the market in an opportune time as I mentioned. But if these factors aren't satisfied then I don't think that it's feasible.