LIQNET: Bringing innovation into traditional exchange of cryptocurrencies

adeyod (42)in #liqnet • 6 years ago (edited)

INTRODUCTION
Cryptocurrency exchange can be defined as the online trading platform where you can exchange one cryptocurrency for another cryptocurrency( or for fiat money). It is either like a stock exchange or a currency exchange depending on the exchange and its underline principles. In cryptocurrency exchange, we have different styles which are determined by the way in which each platform operates. The following are the different styles:

Traditional Cryptocurrency Exchanges: Here buyers and sellers trade based on the current market prices of cryptocurrencies just like the traditional stock exchanges.
Cryptocurrency Brokers: These allow customers to buy and sell cryptocurrencies at a price set by the broker.
Direct Trading Platforms: This is referring to a trading situation that allows peer-to-peer trading between sellers and buyers. Such an exchange doesn’t use an exchange platform just like others and also do not use a fixed market price.
The sellers are the ones that set their own exchange rate leaving the buyers to determine whether to buy or not.
Cryptocurrency Funds: This is talking about cryptocurrency assets that are managed professionally and it allows public buy and holds cryptocurrency via the fund.

Shortly after cryptocurrency gained its popularity, a lot of different cryptocurrencies was developed and also lots of cryptocurrency exchange platforms were also developed. The development of different trading platforms is faced with a lot of different challenges which is hampering the trading of cryptocurrencies. Some of the challenges are:

Lack of liquidity causing volatility: This is one of the most challenging problems facing cryptocurrency exchanges. It is very difficult for traders and investors to exit the market at profitable prices because of lack of liquidity. This main problem is discouraging the most would-be investor from investing in cryptocurrency business. In trading cryptocurrency, traders often have to up their sale and wait for the order to be filled. Traders often get trapped in the market because the majority of exchange platforms don’t have a reserve pool and as such traders must have to wait till when there is a willing buyer on the network. This causes problem mostly for people that buy cryptocurrency for speculative purpose hoping to sell when the price rises.
Lack of regulations engender market manipulation: Cryptocurrency exchange doesn’t have any regulatory authority regulating its operation and this is basically because it is currently functioning in an uncharted territory. This issue of regulation has kept institutional investors out of the market.
Current exchanges are lacking in security for investor funds: This is most common to dishonest exchange platform which can pack up at any time and run away with people’s money. Cryptocurrency exchange needs to adopt strategies that ensure safety and security of that.

These and many more challenges militating against cryptocurrency exchange has ushered in the LIQNET Platform. LIQNET is also a cryptocurrency exchange platform with a difference because it allows unification of liquidity from different platforms and also solves the problems relating to scattering of users, their trading requests and orders, thus forming a unified order book that offers better market depth and also better prices for private persons and legal entities from various jurisdictions. The uniqueness of LIQNET is seen in the LEN(Liquidity Exchange Network) tool. This tool allows to collect and combine orders of clients on the platform and those orders from third-party platforms into a single order package for trading by all LIQNET clients.

The symbol of the LIQNET token is LEN. The emission of the token is limited and has zero inflation. It is an ERC20 Compliance token. This token can be purchased with Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), Zcash (ZEC), Litecoin (LTC), Ripple (XRP) or Waves.

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CONCLUSION
With the advantages that the LIQNET platform carries, institutional investors can now trade having it the back of their mind that the issue of liquidity is solved. This and coupled with the amazing team behind this project, this platform is recommended for everybody to join.
TEAM

ADVISORS

ROADMAP