5 reasons why opting for a cryptocurrency exchange aggregator is a smart choice
The meteoric rise of cryptocurrencies has taken the world by storm. Offering stellar returns on investment, cryptocurrencies continue to arrest the fancies of smart investors and traders across the globe. However, in India, the authorities continue to choose a conservative approach on investments in digital assets. Thus, while leading global counterparts such as Japan, Australia, the United States, and others continue to watch the crypto space closely and install the required regulations in place to safeguard the interests of users, India is yet to follow through with the same.
This would otherwise discourage crypto traders and investors; however, the advent of cryptocurrency exchange aggregator platforms offers sweet respite for the same.
An exchange aggregator platform fundamentally partners with multiple exchanges and offers users an integrated and simplified experience. Thus, instead of hopping to multiple exchanges, the users can receive all the information that they need at a single platform. Furthermore, the current regulatory environment doesn’t impeach upon the proceedings of an aggregator platform, because users are technically transacting with a global exchange, which does not fall under the jurisdiction of the current rules of the land. Since the rules are different, crypto traders and investors in India can easily participate in the global phenomenon of cryptocurrencies without the fear of breaking any law.
While this is just one primary benefit, opting for an exchange aggregator platform offers investors a host of other privileges as well. Let us take a closer look at five reasons why opting for an exchange aggregator platform is perhaps the wisest way to invest in cryptocurrencies:
Any crypto trader knows that opting for a different exchange may have a significant impact on the prices of the digital assets. However, for the sake of clarity, it is important to mention that an exchange is not at fault for such discrepancies in the pricing. We need to understand that the prices of digital assets are governed by the open market forces of demand and supply. Hence, if at an exchange the demand is more and the supply is less, the prices will inevitably swell.
Buying crypto at an exchange aggregator platform allows investors to take a quick look at all the available prices of different crypto-assets. This saves them time from having to manually visit and sign-up at different exchanges. Furthermore, price comparison becomes simple and instantaneous and users are able to make an informed choice.
An exchange aggregator platform works by partnering with cryptocurrency exchanges. In order to provide its users with the best opportunities – and by extension, acquire new users – the aggregator platform endeavours to get the global leading exchanges onboard. Whenever an exchange platform partners with an aggregator, all of its coins and offerings are made available at the aggregator platform. When we consider the fact that different popular exchanges will likely have more than five coins each, their collective offering gets featured on the aggregator platform. This simply increases the available alternatives for crypto traders and investors, letting them reap the maximum benefits from a wide assortment of cryptocurrencies and different matches.
Unified user experience
Investing in digital assets is still a new phenomenon in India, even though the rest of the world has been covering significant miles in the same. Upon initiation into the world of crypto assets, users are practically looking for a simple user experience. Hence, switching between different exchanges might get difficult for newbies and they may end up making rookie mistakes.
An exchange aggregator platform resolves this challenge by providing an integrated and unified experience. The users don’t need to switch to different platforms and go through their unique terms of variations in nomenclature. Under a single umbrella platform, users get to simply start investing.
When a crypto transaction is done from an exchange, the funds are stored in the exchange, unless moved to a personal hot or cold wallet. This increases the security threats since the funds of users stored in the exchange can be compromised if the security of an exchange is breached. However, in the case of an aggregator, the funds are stored in the wallet of the users and hence there are no impending security challenges as such.
In addition to aggregating different coins and offerings at a singular platform, the aggregator also extends great support to the users. Instead of having to knock at the door of multiple exchanges, users need to address all of their queries to a singular exchange aggregator platform. Since an aggregator represents thousands of customers, it exercises its power to win the favour of customers. Thus, while an exchange may delay replying to individual customers – since there are too many – queries from an aggregator platform, on behalf of its clients, will likely be addressed on priority.
These are some of the fundamental reasons why transacting in cryptocurrencies from an aggregator platform is a better option. With the advent of cryptocurrency exchange platforms in India, Indians have a golden opportunity to hoard up their digital assets and be ready for the future.
Ashish Singhal is the Co-Founder and CEO of CoinSwitch.co, a Bangalore-based cryptocurrency exchange aggregator platform.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)