Why do we need so many cryptocurrency exchanges?

[jak3]

This is business and everyone need profit. If we have one market then there will be someone in control about Price and demand but as because there are multiple markets so we can have used demand instead of an individual. So having multiple markets create multiple demands and multiple supplies making the market work.

[Distinctin]

Will not be a big question and to see a huge number of exchanges exist now. That is we called a market competition, everyone wants to compete with others and so creating their own exchanges will they think that could be the best option to take.
There are some advantage and disadvantage to this,
Firstly, it gives us options. Second, it makes others exchange to bankrupt or having an exit scam. They can't take the competition and taking them into down.

[veleten]

it is not "we" who decide how many exchanges are there to be opened
there is this thingy called capitalism and free market
if there is a profitable enterprise , it will always find its way to open and if it stops to be profitable it closes or is bankrupted
there are so many exchanges because it is crazily profitable - they are making money out of the thin air , they just provide a platform for people to trade and charge 0.05% + commission for every exchange , this is better than selling drugs or trading weapons , just because in this case you do not have to possess any asset

[bounty.nvm]

Why did you put this discussion topic into the discussion section of Bitcoin? I think it should be transferred to the market discussion

[Johnzky]

In addition to the exchanges listed on the CMC, there are many other exchanges.I have a question WHY do we need so many exchanges?What do You think the new exchange will be able to attract potential users?

Because they are offering different services and charges and this will benefits us all crypto traders and holders for having many options on where to trade ..

But we must be aware that only few from the list are legit and offers rightfully,many exchanges like Yobit whose scammers and many issues has been thrown thru the years so be careful

[bryant.coleman]

When I first entered the world of cryptocurrency in 2012, there were only two crypto-exchanges in existence (as per my knowledge). They were Mt Gox and BTC-e. The former was preferred by most of the users here, as the identity of the owner was known and the reputation of the exchange was good. On the other hand, BCT-e was famous for not asking any KYC information and it was considered shady. Newer exchanges such as Bitstamp and BTCChina came in to existence later.

The first shock came in 2014, when Mt Gox got robbed. Huge amounts of coins were stolen, and suddenly the users felt insecure about the exchange wallets. But I continued to trust BTC-e, and until mid-2015 I used to keep almost all of my Bitcoin holdings in the exchange wallet of BTC-e. After that I moved my coins to a Blockchain.info wallet.

After the Mt Gox robbery, there were a few high profile hacking incidents. The one that impacted me the most was the Sheep Marketplace robbery. I never had an account with SMP, but the fact that the robbery was an inside job (Tomáš Jiřikovský was the robber, and he was the owner of SMP) made me lose my trust with these exchanges and dark markets.

Nowadays I hardly ever use any of the exchanges. I don't have any significant holdings of altcoins, and another factor is that I don't want to undergo the KYC process. Only Bitstamp remains now, from the old times. But I have learnt my lesson during the last 7 years. Can't trust even Bitstamp.

[coolcoinz]

Why did you put this discussion topic into the discussion section of Bitcoin? I think it should be transferred to the market discussion

It's not a discussion about the state of the market but exchanges as part of the general system. We need exchanges for Bitcoin to function properly, especially that in most places you can't pay your electricity bills in bitcoin, so mining is impossible without exchanging some of your coins into fiat, which makes exchanges an integral part of bitcoin.

I believe that we need many exchanges to have a choice. There's no free market without choices and competition and this is what we are trying to build here.

[bittick]

In addition to the exchanges listed on the CMC, there are many other exchanges.I have a question WHY do we need so many exchanges?What do You think the new exchange will be able to attract potential users?

We don't really need too many exchanges, they just there to give us options to where we could buy/sell out crypto.  New exchanges attracts users by offering features better than other exchanges such as lower fees, faster transaction, and more.

Also to give more competition, as you said the crypto community is actually not in need of all these various exchanges however the appearances of many new exchanges could give competition that will definitely benefits us as a cryptocurrency users so there is nothing wrong with that, also that many exchanges could atleast find and exchange information about security I guess, so that's better.

[bekkioPEK]

I think the main reason is that there could not be an exchange with more than 1000 cryptocurrencies, each exchnage deals with BTC and ETH but then each one deals with different altcoins.
if it were easy to manage 500/600 different altcoins, few exchanges would be enough to cover the whole market, and frankly it would be much more convenient

[DogeSymetria]

Information Parity With Each and Every User.
If anyone has questions about our tech or our plans lemme know.

What's the meaning of that?,,Information Parity With Each and Every User.,,Is there really no information parity at the binance exchange?I would like to know what Your wallet and exchange will be significantly different from others.

Currently all exchanges are in full control of all the records of everything that happens on them. If they were to change something like a balance, how would you prove it? With us every action is signed by both parties private keys, forming what we call a personal blockchain, a chain of signatures between 2 parties agreeing on every action. This gives users the ability to prove foul play.

Example. if we were to steal funds the users would(and should) call us out publicly and show they had funds by revealing that part of their personal blockchain. It would then be on us to show that those users did something with their funds, if we cant provide the users signatures to show what they did with the funds then we are proven bad actors. The goal is that with this tech as the backbone of the exchange we disincentivize ourselves from doing anything remotely untrustworthy because we provide the tools to call us out.

[veleten]

I think the main reason is that there could not be an exchange with more than 1000 cryptocurrencies, each exchnage deals with BTC and ETH but then each one deals with different altcoins.
if it were easy to manage 500/600 different altcoins, few exchanges would be enough to cover the whole market, and frankly it would be much more convenient

Yobit managing around that number , do you really think several Yobits would cover all the bases in crypto exchanges?
most of the lats are just useless copies of the same idea , it is hardly 100 coins in total worth to be considered no shitcoins
the rest is made to earn money for the creators and in most cases they are useless
but since the whole market is new , the Darwin's principle is not working as of yet

[Vishnu.Reang]

I think the main reason is that there could not be an exchange with more than 1000 cryptocurrencies, each exchnage deals with BTC and ETH but then each one deals with different altcoins.
if it were easy to manage 500/600 different altcoins, few exchanges would be enough to cover the whole market, and frankly it would be much more convenient

I am not sure about the total number of altcoins, but I read somewhere that it is close to 10,000. Let's assume that half of them are being actively traded (taking a very liberal estimate), and that gives us a total of 5,000. The defunct Cryptopia had close to 600 different coins listed in it. But they closed down last month. Another option is Yobit, but that exchange doesn't have a good reputation.

[shield132]

We don't.

Every new exchange has one ultimate goal in mind - make some money for the creators. Some try to do that legitimately, but unfortunately the vast majority resort to shady and unscrupulous activities and behavior to do so, be that faking their volumes, faking their trades, insider trading, pumping and dumping, exit scamming, selling your data, the list goes on. "Launching a new exchange" and IEOs seem to have partly replaced "launching a new token" and ICOs as the fastest and easiest way for scammers to lure in unsuspecting newbies.

For your own safety, you should be sticking to the large, reputable, and well known exchanges, although even then your safety isn't guaranteed.

We don't need a lot of global exchanges but can't say the same on local ones, there is a lack of them in some countries and more exchanges in such countries can help to fall fees.
In overall, yeah, a lot of exchangers are faking their data in order to get better positions on coinmarketcap and get attention of new users.
Not fastest or easiest way for scamming but it's really easiest way to collect users' data like some do, block you for no reason and ask KYC to unlock account.
Nowdays there is none exchanger which you can trust, not even binance too, none of them is reliable.

[Vinalians]

There are so many exchangers right now and each of them had a goal. Some of them are for the tokens that are only legitimate coin and some of them are just listing even if it is not good coin or token. We actually don't need many trading platforms but we do have the right to choose what trading platform we wanted and trading platform that we are comforted to use with.
Many exchangers will be release in the future but we should learn how to choose the right one and legitimate one by researching.

[LUCKMCFLY]

I think that more Exchanges are needed for the simple fact that most are very congested, some are level 1 but they do not have features that some traders are looking for, like placing Stop Loss and Take Profit at the same time in one position.You should also be careful because there are many Exchanges that are supposedly Exchanges and end up being scam, you must be very careful with it, and you must have more Exchanges to have the money in several to do as many operations as the trader wants.

[FitzgeraldZ]

The issue that they are at present confronting is awful client experience as they are difficult to utilize and they additionally face liquidity issues which legitimately originates from the past one and from certainty that so as to utilize them you should initially get some digital currencies for fiat on some brought together trade and starting there you can utilize decentralized trade to trade your advantages since fiat exchanging is as yet not permitted in most decentralized trades.

[MIner1448]

Indeed, exchanges have become a lot recently, but on the other hand, the competition of exchanges brings benefits to users, because users need to be stimulated by shares or other incentives.

[carrigan]

The advantage is we have many options to trade crypto coins. It should be good for traders or investors to get their best places to buy or sell. Besides, it potentially provides a tight competition among the exchanges to trigger each exchange shows its best performance. A good stimulation to improve exchange quality exactly. 

[oseikuf44]

We don't need many exchanges but it is the lucrative nature of the exchange business that is aiding the springing up of new ones everyday. They just make money from fees and nothing to pay for apart from human resources to man the exchanges.

[princeyeboah]

More exchanges are necessary because the crypto space is growing incredibly well. As more coins hit the market each time, the need for more exchanges with improved services are required in terms of security, transparency, cost of transactions etc.