Why do we need so many cryptocurrency exchanges?

[Nolimitz84]

I think this is not bad.  Therefore, the more the competition in the market, the better for us.  The more exchanges there are, the better they will be for us.

Competition is good. But you need to remember that there is only a limited number of cryptocurrency users who are active right now, and therefore the total revenues that can be accumulated every year is limited. In case the number of exchanges increase beyond a certain point, then the revenues will fall to a threshold which is below the sustainable level.

A very good answer. Indeed, the supply does not match the demand. Cryptocurrency users are really getting bigger, but do they need new exchanges that even experienced traders do not need?I do not want to say anything bad but as an example I want to present the exchange:https://www.ironx.com/home.html.If I am not mistaken, they raised $ 20 million for their development during the ICO.I think this exchange has no future.

[nicecrypto]

Inspite of the so many exchange we have around 90% of them are not up to expectations, they either have one problem or another, not to mention a bad customer relation, bad user interface etc, beside the number of tokens in the market are constantly growing so more exchange is required to meet up with demand, only that just few are worth the while, the likes of binnace, houbi, Okex etc are dominace of the exchange market, rest are just tagging along. 

[Payme21]

No doubt, there might be more exchanges than we need out there and most have been set up to satisfy particular interest (selfish, in some instances) but there could be some advantages to that in the sense that one has quite some options when wanting to trade. In all, I will rather stuck to the reputable ones.

[DogeSymetria]

It really comes down to weather or not the exchange brings anything new or not. I've been with a new exchange for about a year now and were almost to market. Our thing is holding ourselves accountable which exchanges generally seem to avoid doing.  We require signatures from both parties (exchange/user) for every action taken, from trades to account updates.

We just pushed a blog by one of our co-founders. The Only Way Forward for Crypto Exchanges: Information Parity With Each and Every User.

https://medium.com/symetria-hq/https-medium-com-symetria-hq-the-only-way-forward-for-crypto-exchanges-26ae270a5bd

If anyone has questions about our tech or our plans lemme know.

[muhhentuhhen]

The question is: do we need so many real banks in the world?

The answer should be we don't need. But As Banks takes profits, and give job to many people there are many banks...

Like the banks, the exchanges compete. Certainly, when a guy meets the exchanger with a better rate and the level of trust, he will choose this one. The more exchanges we have, the higher the competition among them is, and the lower the exchange rates are.

[salty]

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.

[Gi01]

Considering the entire crypto ecosystem, Exchange platforms can be compared to the banks. There are a lot of Banks that provide different services and offers. Just like Banks, exchange platforms provide different services and offers that usually meets wide users in the crypto space both newbies and professionals. The presents of crypto exchange platforms make it easier and simple for people new to the crypto space to buy or trade their funds for cryptocurrencies. These platforms bridge the gap in terms of availability of cryptocurrencies to users and the promotion of the relevance of cryptocurrencies in the financial ecosystem.

[sandra_x]

There is always room for better service and new features being implemented. It is actually good for the cryptospace since it helps reduce the risk of monopoly and reduce the burden on a few exchange (which make them vulnerable to hacks)

[Fundalini]

For mass adoption, people need to acquire crypto whenever, whichever, whatever and however they can. For that you need many exchanges that caters to different needs of the people. Also, having few exchange mean that crypto is being accumulated in a single point which will lead to it being targeted by hackers.

[jessicalea]

To be honest, there is no need for so many exchanges. Crypto exchanges like Binance, Coinbase, Kraken have already made a statement and taken the center stage in the cryptocoin market.

However, the reason behind the existence of a host of exchanges is that they offer huge benefits to owners and help them improve their bottom line.

[Apes]

the problem that often arises in cryptocurrency users is the hardness to deposit funds from cash into cryptocurrency, as well as the difficulty withdraw cryptocurrencies into cash.
I would expect more local exchange compared to global exchange, with many of local exchanges in each country it will reduce the transaction fee. users do not need to transfer to several exchanges if they want to withdraw their funds.
users will be easier to choose which exchanges are better according to their daily transaction needs. because the use of exchanges is not always synonymous with traders.

[Netnox]

There is always room for better service and new features being implemented. It is actually good for the cryptospace since it helps reduce the risk of monopoly and reduce the burden on a few exchange (which make them vulnerable to hacks)

My thinking is different. If there are too many exchanges, then the revenue per exchange can drop. And since limited funds are available for the operations, the exchanges may cut back on safety measures. And this can increase the risk of them getting hacked. If there are a few large exchanges, then they can employ a lot of security measures to thwart hacking attempts.

[zee11225]

I think that in order to establish new exchanges, high security standards and new tools are needed so that speculators feel comfortable, that is, that speculators have facilities to make their entries, many exchanges do not have the facility to place in each Stop position. Loss and Take Profit, since there are many Exchanges that do not have this function, and they force the trader to be stuck to the graph.

More crypto exchanges show more and more trade participants, where the amount of money in circulation is an indicator that crypto can be accepted in that country.
For traders, the increasing number of crypto exchanges means more choices for transactions because there will be competition by providing a lot of added value.

[yusupjatigumilar]

Why do we need lots of exchanges? the answer is because we need more references to trade. Then what exchanges will be of interest to many new users? the answer is that exchanges have small transaction costs, the minimum withdrawal is small and the most desirable is an exchange that does not require KYC for its users who want to trade on the exchange.

[pragna]

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 personally think we don't need so many exchanges. There are too many exchanges in market but maximums security system are very low and as a result we see exchanges are hacking maximum times even binance are hacked recent days. So i suggest  low exchanger but strong security for all.

[ghost424]

We actually do not need that many but thinking about our current situation, it is actually good to have many Cryptocurrency Exchanges that can be available in different countries. Exchanges can handle different volumes of Cryptocurrencies depending on their servers. We can have many exchanges because every exchanges may have their own special feature and that feature might not be available on all the exchanges due to different founders and that is actually good because we can create our own decision to choose which exchange will give us more profit on transferring funds.

[Thyristor]

If i asking you why we need a lot of new cryptocurrency day by day? Crypto exchange platform is one of the best profitable business i think.
But i think we need only new potential and transparent exchange not more shit exchange. But still we have many reliable exchanges in the market.

[fortunecrypto]

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 do have so many exchanges right now I used to believe that  ICO based exchange is better ICO to invest, but was proven wrong after the IRONX fiasco and XERA exchanges, some people tried to set up an exchanged and launch an ICO without knowledge on how to set up one or even to market it, with a very stiff competition, weak and poorly managed exchange will close.

[acroman08]

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 many exchanges if the one existing offers everything that their costumer are looking for. also having many Exchange sites bring competition which is good for the costumers because it drives the owners of the Exchange sites to give the best service they have to avoid losing costumers and reputation be ruined.

[waynechong1995]

Its businesses that tries to get their chip in this super volatile cryptomarket, except for decentralized exchange which have other purpose. Capturing a good volume means good business, good exposure and popularity. From a business point view i believe the profit rate of exchange is simply too good to ignore, automated fees and listing fees, and all you need a super good technical team with highly response support team.