A quick analysis of cryptocurrency businesses down the line

Cryptocurrencies are decentralized, digital currencies backed by blockchain technology. Ever since their advent, cryptocurrencies have managed to be in the news headlines and are continuing to evolve in their own space. They have shaped up the way people look at money and their expectations surrounding money. It’s been a decade since the first-ever cryptocurrency Bitcoin emerged in the market. Since then thousands of cryptocurrencies have come up, but Bitcoin is the most popular cryptocurrency to date. 

 

Initially, when Bitcoin came into light, most people were not aware of its utility, but today the scenario has changed radically, and investors all around the world have realized the potential of Bitcoin and other cryptocurrencies.  

 

In spite of the fact that cryptocurrencies have always captured the public eye, they have also been equally criticized and considered a risky business. If you are someone fascinated by cryptocurrencies, but uncertain about investing in crypto businesses, this article is for you. Here, we are going to discuss some prominent use cases that prove cryptocurrencies have managed to overcome the criticisms and are worth the investment; also the promising future it assures for your business. 

 

The prosperous and potential use cases of blockchain-based cryptocurrencies

• Crypto and blockchain in the gaming industry

Cryptocurrencies have transformed many industries over the years, but the gaming industry might be the most significant one. The pervasiveness of microtransactions in video games is what drives the industry towards the adoption of crypto. Blockchain-based crypto helps developers to create their online currencies, and not depend on external mechanisms for payment, which the players can use for purchasing essential gaming accessories both from the developers, as well as between themselves. Gamers spend an average of each on the (free-to-play) game Fortnite, generating 0 million a month for the game creators, which evokes cryptocurrency experts looking hungrily for a way to get them to use their tech.

 

Blockchain and crypto together enhance the industry and solves the existing crisis by facilitating more streamlined, decentralized payments, securing the ownership of the user, safe trading, cross-game compatibility, etc. Some of the most popular crypto and blockchain games in 2020 are Spells of Genesis, Gods Unchained, Mythereum, My Crypto Heroes, Altcoin Fantasy, etc. And some of the popular cryptocurrencies in the gaming sector are FunFair (FUN), Enjin (ENJ), GameCredits (Game), Decentraland (MANA), RevolutionVR (RVR), etc. 

 

• Cryptocurrencies as a store of value

One of the most advantageous use cases of cryptocurrencies is their use as a store of value and the protection they offer against inflation. Especially, stablecoins uses algorithms and pegging to sustain the value of a coin. The main aim of the emergence of stablecoins underpinned by blockchain is to help defend wealth against inflation. This solves one of the major crises existing in the market, which is why the adoption of cryptocurrencies is considerably growing. 

 

• Cryptocurrency exchanges - The Main Force of business 

Cryptocurrency plays the most important role in driving revenue and increasing the market value of the cryptosphere. Most of the crypto enthusiasts today are marching towards creating a cryptocurrency exchange software to drive in potential customers to trade in their platform and earn exponential profits. Crypto exchanges act as the medium where investors can trade their valuable cryptocurrencies for other cryptocurrencies, digital assets, or fiat money globally, in the most convenient, speedy, secure, and seamless manner. There are a multitude of benefits that blockchain-based cryptocurrency exchanges offer which is why investors are inclined more towards exchanges, and the continuing growth is evident. 

 

Currently, there are more than 5,000 cryptocurrencies revolving in the market and, there are many more to come into existence in the near future. This constant emergence and an increase in the price of cryptocurrencies will stimulate investors looking for more cryptocurrency exchanges, to trade their cryptos and make use of favorable market conditions, diversify their portfolios and amplify their profit numbers. This makes cryptocurrency exchanges, a lucrative choice for entrepreneurs. Experts say cryptocurrency exchanges will have a great impact in the coming years, in the growth of the industry. 

 

• The Promising Future ahead for cryptocurrency businesses

What we discussed above is just a drop in the ocean, and there are many many more interesting factors and use cases of cryptocurrencies influencing the growth of major industries operating today. Even though cryptocurrency-based businesses face some challenges such as hack threats, security breaches, etc, experts believe it could all be resolved with the rapidly growing technological advancements. 

 

Cryptocurrencies are slowly becoming the mainstream financial system and crypto ventures are on a rise. Their numbers are accelerating every single day, and the wide-spread adoption is continuing with many countries extending their regulatory acceptance for cryptocurrencies. You could also see many companies expanding cryptocurrency and cryptocurrency exchange development services for the betterment of their business, as well as the investors who aspire to be a part of this revolutionary industry. The future is near and is highly promising. So, If you are one of those aspiring entrepreneurs in the crypto space, conduct extensive research, choose your company, acquire your crypto services to assure yourself a profitable venture.

Best Cryptocurrency Exchange Marketing Strategies from CES

Marketing is what transforms the performance of a good company. It boosts demand, improves reputation, and grabs the attention of the target audience. Every product needs to be marketed effectively to gain an edge over competitors. 

As digitization gathers strength, the emergence of Cryptocurrency exchange software needs to be taken note of. Powered by blockchain technology, it helps buyers and sellers to trade in virtual currencies. With intense competition in the industry, it is important to devise creative marketing tactics to survive in the long run. 

Some of the unique services offered by experts from CES, a Cryptocurrency Exchange Marketing company are 

• Substantial market analysis and consultation -  Our team will analyze what facilities are being offered by the rival firms. This will enable you to improve your marketing campaigns by focusing on the current requirements of your audience. Tailor-made solutions can be created and implemented based on feedback received.

• Developing a marketing strategy - A flexible marketing plan is the key to the expansion of business operations. Every project’s features must drive the customers towards it. Similarly, efforts must be made to attract potential investors to improve the financial position of the firm. 

• Content marketing - Good content in the form of articles, blogs, promotional videos, infographics, and captions for campaigns will go a long way in developing a good rapport with the audience. The content should balance the objectives of different categories of users. It should give an idea of the firm’s vision by being informative as well as entertaining. Investing in a good team that can flexibly handle different channels is needed for successful content marketing. The ultimate aim must be to improve audience engagement.

• Social media marketing -  As the world spends most of its time online, companies must make optimum use of different social media channels. Separate plans can be developed for different mediums such as Facebook, Twitter, Reddit, Telegram, and Linkedin. A variety of content must be posted regularly on all platforms. Premium tools, such as paid advertising, can improve access to a more interesting target audience. Additionally, metrics related to social media must be monitored for improving overall marketing efforts. 

• Public relations - Collaboration with well-known PR agencies will help in improving the brand image of the firm. Press releases and media statements can be generated by participating in different events. This will create a strong global identity for the firm among the traders and investors, and help stay ahead of the competition.

• Marketing done by influencers - There will be certain people who are famous for their work on a particular platform. They can be hired for acting as the voice of your brand on a specific channel. It can include bloggers, popular social media personalities, and vloggers. Influencers play a vital role in expanding the reach of the business.

• E-mail marketing - Through effective opt-in, sign-up campaigns, E-mail can be used as a powerful tool to gather professional clients. Creating newsletters and blogs is helpful in getting new users. At the same time, too many emails with repetitive content should not be sent as it can upset users. The performance of campaigns can be analyzed with tools such as open rate, Click-Through rates, and other engagement statistics.

• Pay-per-Click - It is a paid tool available on some networking channels to gather more traffic to your site. Revenue is received by the website whenever a user clicks on the promotional material, which can be in the form of a small video, banner, image, or an advertisement. It helps to increase awareness of the business in a cost-effective way. The performance can be tracked periodically. 

• Bounty Programs -  These cost-effective programs help to improve market penetration. It gives rewards to people for completing certain predefined tasks. It can include campaigns interconnected with social media, blogs, and forums. This increases the potential of a business and also helps in finding out any visible vulnerabilities.

The above services are an important part of our cryptocurrency exchange marketing strategy provided to a variety of clients for fulfilling their goals. Get in touch with our experienced team to make your business go viral in no time.

Elements to keep in mind for building a cryptocurrency exchange

As interest levels in cryptocurrency exchanges soar across the world, it is important to consider the factors that play a major role in developing a successful and long-lasting Cryptocurrency exchange software. 

• Local advertisement and trading - Advertisements are gold dust for any cryptocurrency exchange software. It helps users to be calculative and decide the investment alternatives perfect for them. Every exchange must allow investors to post ads for selling cryptocurrency. Local trading in nearby locations offering essential services must be provided as per the user’s experience.

• Transparency and secrecy - High liquidity, which reflects the ease of selling an asset without any changes in price, will improve user retention and ensure that they stay on for a longer time. They will also be comfortable in executing crypto coin transactions. Options such as interactive AI chat platforms, secure wallet facilities can improve the overall user experience.  High priority should be given towards the safeguarding of user data. Techniques such as encryption, two-factor authentication, and proactive transaction verification must be used. Independent third-party audits can be ordered to know any vulnerabilities on the cryptocurrency exchange software. 

• Security - With the increase in the number of scams, identity thefts, and data breaches, an exchange must devote efforts towards cyber-security. News reports about data leaks can cause huge losses that can be detrimental to the credibility and functioning of the Cryptocurrency exchange software. User’s funds can be protected using options such as cold storage wallets, multi-signature authorization for withdrawal, and transfer of funds to hardware wallets. Investors must also not keep their digital assets on the exchange for long. It is best if they switch between different exchanges for optimum risk management. 

• Availability of cryptocurrencies - Successful cryptocurrency exchanges must offer a variety of crypto coins to trade with, such as Bitcoin, Ethereum, and Ripple. Industry-specific cryptocurrencies must also be offered to cater to the niche market. A user will feel more trusted with different cryptocurrencies on the platform. He/she can alter their investment patterns accordingly. Skeptical users can check details with reputed websites and forums which list out the exchanges and their offerings.

• Trading fees - It is one of the important sources of income for a cryptocurrency exchange. High trading fees can affect the quantity of deposits created. Low trading fees can attract a large number of investors and uplift the trading volume. The final rate must be fixed based on the competition in mind. It must be affordable for  highly frequent daily traders. The rates for spread fees must also be decided during Cryptocurrency exchange development as it plays a crucial role in attracting investments.

• Location - Since cryptocurrencies are yet to be regulated by most countries, more scrutiny by the media and the financial industry is expected regarding its functioning.  Skepticism regarding its use for illegal activities, such as money laundering and drug peddling, must be put to rest through progressive laws by the country. This, in turn, can affect the prices of the exchange and the behaviour of the traders and investors.

• Provision of additional features - Analytical tools during Crypto exchange development that provide deep insights can prove to be an extra benefit for users. A multi-functional trading terminal can be installed for rendering the latest information on margin and leverage trading.  Interactive charts that analyze inflow and outflow of coins, trends in price movement, data-driven research on investment can be presented.

CES possesses all the necessary technical knowledge to develop a successful cryptocurrency exchange. Get in touch with their accomplished developers for availing a range of customizable solutions at competitive prices.

Factors hindering Cryptocurrency Exchange development

Though cryptocurrencies have witnessed substantial growth and frenzied trading levels for the past few years, their value as an investment tool has been affected by several factors.

Some of the important aspects that can bring about a huge difference in choosing a cryptocurrency exchange software are

• Domination of a few cryptocurrencies - First-mover advantage would hold good for established cryptocurrencies such as Bitcoin. As more and more cryptocurrencies enter the market intensifying the competition, very few offer innovative and differential solutions. This can lead to a situation where only a few cryptos sustain in the long run. With the rise in the number of online scams, people may be skeptical of investing in these platforms. This increase in caution and less appetite for risk-taking can affect the number of Initial Coin Offerings and tokens created through these exchanges.

• Increase in the number of rivals - With the tight rivalry between experienced cryptocurrencies and new startups, healthy competition is good for the industry. However, trust and leadership play important roles to ensure that the decentralized technology flourishes. It depends on the extent to which blockchain technology is used to fix critical issues such as transaction costs and network strength.

• Adoption from the mainstream - No cryptocurrency can truly grab the market without being in good books of the financial system. Players, such as commercial banks, moneylenders, etc., willing to accept Bitcoin as deposits can prove to be a gamechanger. The usage of cryptocurrencies by the public in retail stores and other utility outlets can boost their status. Strong reasons need to be advocated and concerns addressed, for replacing traditional currencies with digital currencies. Innovative offerings through future contracts, debt instruments can play a big role in wealth management and asset allocation.

• Involvement of the Government - Regulatory authorities of each country should be open-minded and friendly towards cryptocurrency exchanges. The full potential of blockchain technology is realized through cryptocurrencies. Banning cryptocurrencies in some countries would narrow down the spread of technology too. Centralized control is not ideal. Timely intervention through laws and clear-cut policy guidelines can play a significant role in the adoption of cryptocurrencies throughout the nation.

• Role of the media - News Feeds spreading negativity can trigger the market by manipulating the minds of investors. Flashy coverage can spread panic and lead to a glut in the market. The media must provide a non-biased view of cryptocurrencies keeping in mind the interests of investors and companies. Too much importance given to the performance of market leaders can also affect the industry, as a majority’s viewpoint takes precedence over independent coverage. The media should not also fall prey to fake news and must do thorough fact-checking before posting their views. Other factors like political tensions and financial instability can also lead to manipulation in the price of cryptocurrencies.

• Security problems and bankruptcy - Hacker attacks, ransomware, and data breach in cryptocurrency exchange development can promote fear in the minds of investors. There are many cases where funds have been withdrawn automatically from investors. Since exchanges, platforms, and wallets are inter-connected, violations in any system can have a huge impact. A market with a large number of exchanges and widespread distribution of funds can manage such a crisis. Cryptocurrency exchange software with a small trade volume will be subject to high speculation.

Get in touch with CES for selecting a cryptocurrency exchange software as per your needs.

Their skillful developers will give your business customized solutions that can withstand the impact of all the above factors in a successful manner. 

Know the ingredients behind a successful cryptocurrency exchange software

Liquidity is one of the critical factors behind the success of every White label cryptocurrency exchange. It holds the glue between traders, investors, and the market. Despite new exchanges emerging from different countries frequently, not all of them have adequate liquidity. With an increase in the number of users, exchanges need to have financial prowess built to settle transactions, meeting demands of buyers and sellers, and effective management of trade. Higher the liquidity, the more substantial would be user engagement.

In this article, we will analyze the importance of Liquidity and the challenges to it in a Cryptocurrency exchange software.

Significance of Liquidity

• Helps in determining fair prices - A system with a large number of cryptocurrency traders and a consistent trading activity will help realize competitive prices. Market stability will be ensured in the form of equilibrium as both buyers and sellers bid at high prices satisfying their respective positions. Consequently, this will lead to the strengthening of the financial system.

• Faster transactions - Speedy transactions will take place through regular demand and supply, leading to the faster settlement of orders. This can lead to the creation of a better trading experience and promote higher user retention.

• Helps in technical analysis - Expected trends in future prices can be determined based on the analysis of past data using graphs and charts. Market movement can be estimated in a better manner using calculative tools. Higher liquidity would ensure better analysis in the volatile world of a cryptocurrency exchange software.

Obstacles to Liquidity

• Trading volume - White label cryptocurrency exchanges with low trading volume due to market fluctuations will have poor liquidity. It also has a bearing on the value of a crypto coin. Liquidity will boost with greater trading volume and busier activity on the exchange.

• Acceptance - Despite widespread coverage of cryptocurrencies across the world, there is still a hesitance to use this speculative tool. More credibility is needed to improve acceptance rates. The acceptance of virtual currencies by leading multinational companies and governments can prove to be a gamechanger. Clear regulations and stipulated guidelines must also accompany acceptance.

• Regulations - Different sets of rules and regulations in different countries can trigger confusion and ambiguity among investors. This will have a direct effect on liquidity. Some countries are playing it safe by banning cryptocurrency, which can have a widespread impact on the industry.

• Listing of cryptocurrencies - New exchanges which do not offer much cryptocurrency options will not attract investors and cannot sustain in the long run. If more cryptocurrencies are listed, it will help in increasing the number of orders.

• Payment options - Cryptocurrency exchanges will have investors from a wide range of fields. Limited payment methods will limit the functioning of your exchange. An increase in the number of users can occur if widespread payment options are offered like a credit card, debit card, Paypal, Worldpay, and crowdfunding.

• Availability of trading features - Interactive trading atmosphere with the latest market knowledge, multiple wallet integration, variety in trading pairs with calculated spreads, and competitor analysis through comparative graphs will go a long way in improving liquidity.

To obtain consistent liquidity for your cryptocurrency exchange, get in touch with the skillful developer team at CES. Their expert advice will help in objectively analyzing the market and improve your business prospects by many notches.