How do crypto exchange help a cryptocurrency?

[lendahawkins]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Good exchange could help investors to trust their coins on it and we been see so many exhcange got hacked and thats why we do need a good exchange such as binance and kraken. The more investors in the more better the crypto ecosystem. Exchange also became the first gate for investors to start investing their money into crytpocurrency.

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[Abolaji11]

Crypto exchange is like a normal market where goods can be exchange or trade for fiat and vice versa...Crypto exchange create a platform where cryptocurrency can be easily convert or trade to fiat and verse versa. The adoption of crypto is on the rise partly because investors know there asset (holding)can be easily converted to fiat via an exchange at any particular time.

[macartem]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Without exchanges, you will not be able to exchange your cryptocurrency (no matter what it is, bitcoin, ether, monero or some other altcoin). That's why exchanges are very important for the development of cryptocurrencies.

[anti76]

Exchanges are needed to exchange one currency for another. The better the exchange, the more sales volumes there are on it. Recently, there are a lot of exchanges, but the people's preferences still remain to the old and trusted exchanges.

[Dilerium90]

Here everything is simple - the more good exchanges will accept a coin, the more it will have the volume of trades, greater the volatility, and accordingly the coin growth will be higher. It becomes more promising for traders. But good exchanges want really crazy money for listing.

[CodyAlfaridzi]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

For exchange that directly accepts fiat, they help cryptocurrency as the bridge for fiat-crypto transaction. Without them, you won't have an easy time when you want to buy or sell crypto with fiat. These exchanges make fiat crypto exchange easier. Because it's easy, it'll indirectly affect how much money is invested in the whole crypto industry.

[shield132]

It's funny to read what others post here, let me state my true (I think so) opinion:
After all USD is most widely used currency and we convert bitcoin in usd. Without crypto exchange, it would be impossible to determine it's price and no one would use it. What is crypto? Just virtual thing. From it's nature, price is determined by last buyer overally, it's decentralyzed. Also people need price in usd behind bitcoin to use it in real life.

[lotsky123]

Crypto exchange has contributed much to the existence of cryptocurrency. To be able to convert or exchange from one crypto to the other we need to have a crypto exchange. Here in our country, not all cryptos can be used in purchasing goods or services. Our merchants here only accept bitcoin thus we need to convert our other cryptos to bitcoin or fiat money to be able to use it in buying goods, online shops, pay bills, buy loads, etc.

[sunsilk]

Exchanges are now benefiting to cryptocurrencies through withdrawal fees and listing fees.

But in return, as a trader, we get to have the best service that we can from well known exchanges and we can have a way to exchange those coins that we are getting. There will be no way to withdraw and cash out crypto's if there are no exchanges out there that's being funded by millions of dollars.

[liseff3]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Every crypto exchange account's identical to selling, buying, withdraw and storing transactions. Their existence can certainly contribute to the growth of cryptocurrency for example by reducing the transaction costs imposed because for most investors high transaction costs can lead to a decline in their interest in investing and the wider community may be reluctant to adopt crypto.

[ufaiz50]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Because with the exchanger like binance, bittrex or othe make cryptocurrency can be bought and sold, this helps us as traders or cryptocurrency users to buy or sell crypto itself, and with the exchange the traders or users who buy it will increase interest in cryptocurrency, it would be strange if we wanted to buy or sell but no one place.

[hubballi]

Crypto Exchanges are created to trade crypto currency, because without exchange how are you going to buy and sell the coin and increase the value of the coin. So this type of benefits are done by crypto exchanges to the crypto currency.

[xuan87]

Crypto currencies need supply and demand to grow the bigger the supply and demand, it will create bigger transaction volume, if the transaction volume is big then it's mean the crypto got a lot of investors, because most people now are treating crypto as investment,so most of them are trading Bitcoin through exchanges

[EdenHazard]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Untill now, a person who has a cryptocurrency is mostly used as a system to get profit, whether they use trading, lending or investing. Because most of the online trading system or conventional trading system still use money fiat. The function of an exchange itself is to exchange cryptocurrency against money fiat, even though they (users) who store bitcoin in hardware wallet when they want to exchange cryptocurrency for money fiat they must definitely use an exchange.

[gambitcoin53]

exchanges can be called the bridges between fiats and cryptos, it intermediates digital money and physical money and vice versa, there are many exchanges out there but be careful to choose the most trusted sites, there are some exchanges that has a legitimate credentials and there are some unstable sites that can burn your cryptos. they are considered as the third party sited that caters conversion to other cryptocurrencies and tokens. they also buy and sell tokens and other coins as a form of crypto investments.

[timerland]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

In a decentralized cryptocurrency, exchanges shouldn't really matter.

However, there are some tokens/coins/assets that have such low makret capitalization and have just came out that once they get listed on a major exchange like this, the extra publicity and liquidity causes their markets to go up.

But in terms of real on chain benefits, exchanges do not affect any of those. I'd say that only an asset's liquidity and price would be affected, just as you would see when a company goes onto a major stock exchange.

[Gibreil]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

Cryptocurrency exchange becomes the way to exchange the tokens wether it is connected in ERC20 token, NEP token or other smart contract platforms. The exchanges become also the portal of the trader who wants to earn in cryptocurrency. Cryptocurrency exchange is good as stock exchange because there are no limits in crypto and it does not required a lot of money though it is advantage in trading.

[kaya11]

It gives liquidity, scatter the coins to the world with different people holding it. Give others the chance to buy the coin when they were too late to get the offer from the start. Sometimes if it is on a well known exchange it also gets famous, and therefor give a hype in the crypro community. The bad thing is that some whales are able to manipulate like putting big money on it in order to pull back the price and buy it.

[metalglowd]

I'm not familiar to the world of trading (even the traditional ones). Can someone explain how a crypto exchange (like Binance or Kraken) benefits a cryptocurrency?

it's like an analogy, you have a garden, you have lots of fruit. but you have no place to sell it, then will you sell it in front of your house?
what if it's not sold, won't the fruit rot?

and you see the market, where they sell various kinds, isn't it more effective to sell on the market ?
That's how it works, You get a profit, Buyers get what they want, and the fruits won't get rot faster.