Jun 16 2019

Guess What, Cryptocurrency Exchange Problems and Its Solutions

If you are a businessperson or people who are interested in investment, you definitely will understand its development. In the financial industry, a cryptocurrency developed. However, it takes place to gather together with some issues that plagued it.

Actually, Bcnex wants to develop technology in the future era by exchanging the digital assets and cryptocurrency which will be an important thing in the financial industry. The digital assets technology has begun to show their impact in the real world. It adapts quickly and become a trend in the industry. One of the examples is cryptocurrency exchange.

The cryptocurrency exchange has become the central attention of people over the world in digital currencies field. In each year, this exchange platform is increasing. From this cryptocurrency exchange, people not only get benefits but also suffer significant scaling-issues, both on the operational and technical side.

The Problems of Cryptocurrency Exchange

In this article, we provide you with some issues that the investors may face in these digital assets, cryptocurrency. There are 6 problems as the below explanation.

Let’s take a look at the detailed information!

  1. Weak Technical Architecture

Some digital exchanges were conducted by professionals engineers who have many experiences or with no experience at all in the field of finance so, they did not know how to operate financial services platform.

Usually, to get the system up and running they will choose the easiest way to save money and time. This exchange may work well in the first place it is. However, this may come worst when the number of traffic increases, while the system is overloaded and unable to process users’ request. In other words, people can buy or sell on cryptocurrency and they will not catch it in Bcnex.

Despite, an exchange should be well-designed with an efficient, enough security, speedy transaction, and the scalability. On the other side, Bcnex is established by well-experienced workers especially in the financial system in Forex market as well as real-time data application system. They have an in-depth understanding in the sector needed.

  1. Lack of Security

Because of malicious activity or hacker infiltration, statistics show that hundreds of exchange were closed. In 2017 and 2018, due to targeted attack according to the data from Group –IB, exchanges suffered total loss of $882 million. Meanwhile, Bcnex is designed by the highest security standard that can minimize hacker infiltration or another access from the irresponsible system or might be people.

  1. Low Market Liquidity

Basically, the main goal of the exchange is to create high liquidity, support investors in the trading system, and take initiative purchase or sell decisions. However, the digital assets exchange mostly did not meet the requirements so, it leads to unpredictable results for investors.

Liquidity is an important element for any of market, and due to the decreasing of liquidity, orders are not placed on time and the doors are opened to manipulate prices. Therefore, it leads to an imbalanced environment and things go out of control. In short, to attract coin miners, investment institutions and high-volume traders to a newly established exchange is difficult and requires an experienced team with an in-depth understanding about this new market.

  1. Poor Customer Service

Customer services are often ignored by some exchanges although this is one of factor that determines exchanges success. Based on the Accenture study, there are 52% of customers who have had a bad customer service experience with the company stop purchasing their service and product.  By this moment, many users will complain about the bad services they received from the company so it leads to the poor of customers support.

  1. Trading fees

On cryptocurrency exchanges, the trading fees are sort of a two-edged sword. When the fees are low or no fees at all, the liquidity of exchange also increases. It permits large investors to deploy crypto prices cheaper and easier. Besides, cryptocurrencies naturally promise to interrupt the financial sector by making transactions far cheaper.

  1. Trading pairs

Besides trading fees, the issue also can exist from the trading pairs. It happened since there are 200.000.000 (two hundred million) individual tokens of cryptocurrencies that will be a very significant problem. So, if you want to sell one token for another, automatically it requires two traders which makes the double amount of fees necessary in order to exchange the token.

The Bcnex Exchange Problem Solving

After knowing about some issues that exchanges may face, we also provide you with some Bcnex exchange problem solving that can be the ways to reform those weaknesses. There are five ways that can be conducted to solve those issues are as follows:

1. Technical Solution

In this part, there is two technical solutions provided as follows:

1) The BCOMS Order Matching System

The BCOMS or The Bcnex Order Matching System is a component, which matches both of buying and selling exchange orders. In other words, it is a feature to buy and trade. Also, it is considered as the most eminent part of Bcnex that is built with high precision. All purchase or trade orders are stored with high performance queues and a good quality system which is designed to minimize the possibility of losing data.

So, all buying and selling activities will be stored in the high quality storage which ensures the users that their data will not lose. The BCOMS is the fastest exchange since it is capable of doing 2.000.000 trading orders per second. This flexible scalability makes the elimination of common issues on the overloaded system is very capable.

2) A Stable System on Microservices Architecture

To make sure scalability, a stable system on the microservices is used by adding physical servers when the system needs to handle a large number of transactions. With load balancing system is placed, the capacity of the Bcnex increases up to 99,9%. Besides, to improve their users, the access to speed is improved.

The microservices on Bcnex is divided into small services with separating databases which let us to make scale and modifications without compromising the whole system.

2. Safety and Security Solutions

It is also divided into 2 parts like the below explanation:

1) Multi-layer Security Architecture

Bcnex has already completed with a system engineering from the ground up with security in mind. Come up with it, Bcnex also deploys the security system into multiple layers which include, robust firewalls, anti-DoS, multiple user alerts. If Bcnex found some strange activity, automatically it will block the account for a certain period. It also will notify the user of the account.

To put it briefly, before attempting to perform any transaction activity in the process of KYT (Know Your Costumers) Bcnex will ensure all the user’s security crypto assets which aimed to achieve banking industry in the level of security compliance and auditing. Also, it uses Google/SMS 2FA for the users. This aimed to act related to security on the trading platform as a security measure.

2) Optimal Wallet Solution

It is very eminent to consider a large number of cryptocurrencies which are being stored on the major exchange. Hence, to keep users security, Bcnex is accomplished with the security solution which consists of a hot wallet, a cold wallet, and secure hardware.

The operational system of those wallets is similar to what is applied by Bank, ISP providers, and the developed countries government. Mostly, the vast Bcnex assets (98%) are stored in the cold wallet, whereas the remaining balance is stored in the hot wallet that is enough to cover the number of daily withdrawal users.

3. Liquidity Solutions

Bcnexhas worthy experiences in everything including from design to client support all the way to modify liquidity management and low latency trading architecture in the forex market industry. Moreover, Bcnex has many good partners in the industry who will be the key to the exchange launch and make them easier to build well established foundation of an existing business.

4. Customer Service Solution

Along with the development of exchange infrastructure, Bcnex began to consider customer service as a vital part in the digital economic industry. Therefore, they realize that they have a large amount of users, so they provide the users with always ready service management team who are willing to solve any issues. So, Bcnex is established for offering a flawless user’s experience.

Substantively this article does not mean to address one of particular individual or entity. It is just glimpse information that we write in order to share you if you guys interested in it.

That is the end of this article. Hope we do help you guys to know about Bcnex exchange problems and its solutions. Thank you! Happy Reading!

Join Super Airdrop:

If you need further information, you can check it in this link:

Ann Thread: https://bitcointalk.org/index.php?topic=5111223.0

Website: https://www.bcnex.net/?lang=en

White Paper: https://www.bcnex.net/BCNEX_WP_ENG.html

Social Media:

https://twitter.com/bcnex_net
https://www.facebook.com/bcnex.net
https://t.me/Bcnex_Official

Posted by: kurniawan05

https://bitcointalk.org/index.php?action=profile;u=1187741

By • 1,200 • Tags: , , , , , , , , ,