Blockchain’s decentralized, open-source nature seems to make it possible for anyone in the FinTech industry to see the dark side of things. Auditors can review cryptocurrency and know that the technology is transparent.

More than 6000 cryptocurrencies exist, with many new crypto-exchange platforms emerging. Many users are putting their trust in exchange platforms to manage their money, which raises questions about transparency and ability to make informed choices.

Mike Ermolaev (head of PR, crypto exchange platform ChangeNOW) discusses the essential values to be incorporated into a cryptocurrency exchange platform in an exclusive interview.

Transparency Is the Key

Centralized cryptocurrency exchanges typically use custodial trading, where users deposit their fiat money or coins at the exchange. The exchanges’ databases are where trading takes place, so blockchain is not required.

After trading has been completed, the users have the option to withdraw their crypto from their exchange account. Upon withdrawal, the exchange uses an on-blockchain transaction to transfer coins from the exchange’s wallet to the user’s wallet.

Users are exposed to risk when they engage in custodial trade at a centralized platform. Hackers could access the wallet that is provided by an exchange platform. Hackers can even get into the wallets of big players like Binance. In the 2019 hack, Binance customers lost 7,000 bitcoins.

This is all without mentioning that, if the exchange is compromised, the platform may refuse, or be unable to withdraw coins from the exchange’s wallet back to the user’s wallet. This counterparty risk is minimized or completely eliminated by non-custodial transactions.

Ermolaev highlights that the need for transparency was the starting point for developing the ChangeNOW exchange platform, and non-custodial solutions are part of the necessary transparency in the exchange market.

“ChangeNOW has a transparent platform for the market. And we are going to grow even more transparent in the future because that’s what also pushes things forward,”
says Ermolaev.

ChangeNOW offers unlimited and instant cryptocurrency exchange, without the need to register. The platform currently has around 320 coins available for trading. Ermolaev stated that honesty is their key competitive advantage in the highly saturated cryptocurrency market.

“I think it is [being] honest with your customer. This is, in my view, the #1 point of all transparency. It is important to be honest with your customers, even when it comes down to small details. It’s important. That’s why we are here, and I can say that we are going to stay here for a long time,”
believes Ermolaev.

Ermolaev believes transparency is essential to ensure customers receive accurate estimates and honest information about prices and transaction times. Sometimes, using an exchange platform can prove frustrating due to unexpected fees or transaction times that make it take twice as long as regular banking transfers.

Ermolaev says that the ChangeNOW platform is distinguished by its fast swaps and no hidden fees. It doesn’t need user authorization and can be used with just a few mouse clicks.

Importance of Crypto Education

Crypto may well be both very rewarding and harsh to those who hop on the train. Crypto education and knowledge will be crucial safety nets as mass adoption continues and new regulations are being established.

It is vital that all traders are educated, particularly in this pivotal time of crypto markets. It is important for different market members to be honest with users, being open and telling them what is going on,”
Ermolaev believes.

Ermolaev explains that ChangeNOW invests considerable time and resources in educating customers about how to avoid losing their money while trading on its platform. It is essential to be transparent and ethical.

It is essential to offer possibilities, just as education. Our ecosystem needs as many options as possible. We are trying to do this. So I think these two factors together will make the market more conscious and grown-up,”
elaborates Ermolaev.

Ermolaev acknowledges mass adoption brings newbies into the crypto market. However, their products are also being used by crypto veterans. ChangeNOW strives for growth with the growing crypto market. It offers solutions suitable for anyone, regardless of their level in crypto knowledge.

On The Flipside

• As the crypto exchange market is highly saturated, ChangeNOW will have to fight for its spot in the light.
• It is easier to persuade users to switch to smaller platforms that are more popular than the larger ones.
• It is more challenging for customers to discern the distinctive value proposition of different cryptocurrency services providers due to an overload of information.

Why Should You Care?

There are many exchange platforms, and there is a lot of competition. This pushes crypto exchange forward. ChangeNOW is an exchange platform without registration and that does not require clients to be custodial. It respects the privacy and trust its customers.

Next week, watch the complete interview!

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