Why do we need so many cryptocurrency exchanges?

[Gibreil]

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?

There are many exchanges floating today due to the profits they may get in cryptocurrency industry. Many developers wanted to make money using their websites and it may lead to a scam exchange because some devs are making it to fool people specially, new traders. On the other hand, it is good to have many trading platforms because we can see the various characteristics of an exchange. Just like their trading fees, network, liquidity and customer service.

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[mace15]

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?

There are many exchanges floating today due to the profits they may get in cryptocurrency industry. Many developers wanted to make money using their websites and it may lead to a scam exchange because some devs are making it to fool people specially, new traders. On the other hand, it is good to have many trading platforms because we can see the various characteristics of an exchange. Just like their trading fees, network, liquidity and customer service.

It is obvious in crypto world competition is existing so as a user we should really choose the best exchange with the best securities they have. Granted many platforms existing be observative on their platforms, fees and their support if they can able assit users so always think of safety first of your funds because some their exchange got hack.

[alina345]

Exchanges help to diversify the offerings for investors, buyers, and traders who want a platform that perfectly suits their needs. Some people prefer exchanges which are user-friendly, while others look for security and authentication.

[Little_king]

There is need for more exchange for competition reason and securing but the current situation in the market has not really enhance the level of competitive which many are not even good at the job but just want to be in control of the people funds are has nothing to really show for competing .

Some offer different benefit to tackle their opponent which gives hedge to the users to select which one is better in terms of fees and security , but to be the fees is nothing but the security of users funds .

Just like what happen to binance of recent which if it were to be one of these exchange , that might be or even the end of the business but in binance nothing affect the user and the business is on and safe again .

[erikalui]

We need more exchanges as now the market is down and most of the big exchanges have become insolvent, have been hacked and some just couldn't manage to earn enough to keep the site running.

In your reply unfortunately I do not see the adequacy.Why create hundreds of exchanges if they do not have the funds even to maintain the health of the sites?I met quite a lot of exchanges that simply disappeared and their sites did not work and my funds remained there. Since then I have used proven and reliable exchanges.

What defines a proven and reliable exchange? One which pays on time and doesn't ask KYC or one which takes a long time and asks for KYC? I have used many reputed exchanges and the same exchanges ended up scamming me or getting hacked. The truth is all exchanges are the same as they don't have any laws to protect the traders so even if we have a lot of exchanges, I don't see it as a problem and of course, I don't even trust Binance and Coinbase as they too can anytime scam their users. The scam of cryptopia is still fresh in my mind as I lost my money there.

[FuryBeast]

Actually, we don't need as many exchanges as existing, but it's competitive market, and the best exchanges absorb the biggest audience. It's hard to say that the abundance of exchanges is bad, because if there were only 1 or a few exchanges, they could create a monopoly with very harsh fees and other conditions for users. So I'm rather for a variety of exchanges operating under different terms & conditions than a monopoly of a few exchanges. However, we still have a few big leaders that can affect the whole market, and that is not very good.

[Iceblast]

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?

the new digital currency must require a lot of exchange, this is useful as a promotion while earning profit, because the new digital currency if it does not have a lot of exchange the price cannot be pumped and is not in demand by buyers of tokens

[BitBustah]

People like to have many choices, simple as that

Why do we have so many different video games?

Why do we have so many different clothing stores?

why do we have so many different online casinos?

Hope you get my point

[traderethereum]

Exchanges help to diversify the offerings for investors, buyers, and traders who want a platform that perfectly suits their needs. Some people prefer exchanges which are user-friendly, while others look for security and authentication.

Besides that, the present of the exchanges will help us to gain more and more profit, and some of us has already used the exchanges to do arbitrage trading, and I am sure that they can make a nice profit.
We don't need to trade on every exchange in out there, and we only choose one or two or three exchanges to trade so we can stay focus to make the profit.
I think with so many exchanges we know right now, and we could see how much the difference of the price in every exchange so we can decide to do arbitrage trading or trading in one site only.

[Romeoetin]

It's a free market economy. Every one is allowed entry but as a potential user/customer you need to be sure the exchange you use is reputable enough to warrant your patronage. Do your own research always. The market is saturated with a lot of fake exchanges with fake volume too. Most of them are out to scam unsuspecting users.

[SaShiRaJaVu]

There are many exchanges floating today due to the profits they may get in cryptocurrency industry. Many developers wanted to make money using their websites and it may lead to a scam exchange because some devs are making it to fool people specially, new traders. On the other hand, it is good to have many trading platforms because we can see the various characteristics of an exchange. Just like their trading fees, network, liquidity and customer service.

If you are really looking for profit, you need to have a good front end software to attract new customers and it should be user friendly, the real risk associated with running of these exchanges are evident with the numerous hacks that happened around the globe, it is not that easy to run the exchange smoothly but anyone with basic skills could start one, there is nothing wrong in having competition in the market.

[wambowambo]

Crypto exchanges are necessary but having too much isn't needed. There are just new existing and new exchanges being launched for their own purposes. They're competing for a higher rate which they make as a business. Exchanges wouldn't exist if they aren't earning through it. Instead of being confused, we must be wise upon choosing an exchange.

I agree with what you have said, but for me multiple exchanges is helpful too since different exchanges offers different prices of bids we can see who among them is worth investing your assets, and in my experience there would be a lot of possible instances about maintenace and unexpected delays if we are all having a single exchange it will take so much time to have our money or profit that we have allocate to it. Crypto community allows these different exchanges to exist since not every cryptocurrency have the same compatibility with one other with our desirable cryptos which I think is helpful too for us convert our prior assets to another crypto.

[ufaiz50]

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?

In my opinion we do not need to need a lot of exchanges, here why many exchanger including those who have not registered at CMC because every developer has their own idea how to develop blockchain technology, that's why many are competing to make exchangers with features in it. to attract users, according to me, I first held a Giveaway, with which we can create a community and attract all users to join in as a community by make a Giveaway.

[Sithara007]

It's a free market economy. Every one is allowed entry but as a potential user/customer you need to be sure the exchange you use is reputable enough to warrant your patronage. Do your own research always. The market is saturated with a lot of fake exchanges with fake volume too. Most of them are out to scam unsuspecting users.

So far this year, reputed exchanges such as Cryptopia and QuadrigaCX have closed down, leaving their users high and dry. All of them closed down abruptly, before the users could withdraw any of their coins (in case of Cryptopia, it was possible to withdraw some BTC before they closed down). These are not new exchanges. These ones were operating for many years and had hundreds of thousands of users. If these exchanges are closing down, then how can you trust the newer, smaller exchanges?

[shane]

If there are more cryptocurrency exchanges, it is good for traders/investors.

Less cryptocurrency exchanges means easy to manipulate the prices of the coins by the exchange owners. If we have more cryptocurrency exchanges it is difficult as traders can easily catch the price differences. Smart traders can even take it as an arbitrage opportunity and gain profits.

If there are just few exchanges, again they can take that as an advantage and charge a higher trading fee. Since there are considerable number of exchanges and they are offering competitive trading fees, we can enjoy less trading fees. This is applicable for both deposit and withdrawal fees as well.

The downside I see is that most of exchanges don't care about the customers and just trying to maximize their own profits with various methods such as doing fake volume to attract more traders and not investing on the security of the exchange to protect the users from possible security breaches.

[therhslv]

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?

I would say , the more the better . As there is projects out there that can afford to pay listing fee for binance and there is that can't so they search for some not so popular exchanges to list themselves . Image if there was only Coinbase , Binance and Bittrex . Do you think new projects would be able to list themselves there ? Imagine the volume on exchanges if there was only 3 of them And ofcourse more funds for hackers as if they hack 1 of 3 exchanges

[Netnox]

I would say , the more the better . As there is projects out there that can afford to pay listing fee for binance and there is that can't so they search for some not so popular exchanges to list themselves . Image if there was only Coinbase , Binance and Bittrex . Do you think new projects would be able to list themselves there ? Imagine the volume on exchanges if there was only 3 of them And ofcourse more funds for hackers as if they hack 1 of 3 exchanges

Why there is a listing fee? The exchanges are already collecting fee from the users for trading, and therefore the listing should be completely free.

IMO, it makes the exchanges more prone to scams and ponzis. Now what happens in case you are charging a certain amount for listing is that good projects which can't afford this amount will be denied listing. At the same time, scam coins may get listed if they are ready to pay a certain amount.

In case they want to charge for listing, then trading should be made free. Can't have it both ways.

[KennyR]

The days were moving completely towards decentralized functioning, and as a part of the same we're in need of exchange services on the decentralized platform. Even now we've got more cryptocurrency exchanges, but users haven't got things fulfilled with this. This is what the reason for the need of more and more cryptocurrency exchanges.

[okala]

The cryptocurrency market is expanding and at that there have been increasing number of different development in all crypto assets and exchange as one of the vital organ of cryptocurrency there is a need for continues development and advancement. Before now we don't have exchange that offer direct crypto for cash exchange but with development there are now a number of exchange that offer such services. So I will say we need new exchanges due to increasing demands for development.

[rdbase]

I noticed some exchanges have region restrictions now like what bitfinex did back at the end of 2017 with not allowing any customers from united states to have an account with them.
Also bitmex http://www.bitcointradingsites.net/bitmex-usa
Bittrex had to open a separate entity operating out of malta because of these restrictions associated with us customer base. https://bitcoinist.com/bittrex-segregates-us-traders-with-launch-of-international-exchange