Traits Of A Next-Gen Centralized Crypto Exchange

crypto exchange

There are over 200 crypto exchanges in the market today. Differentiating the good from the bad can be extremely difficult. Foremost, users need to know the extra steps exchanges are taking to ensure the security of tokens.

However, it’s not just about security, users need to know the direction exchanges are heading. Exchanges no longer facilitate trade alone, they are evolving into highly secure and institutional grade infrastructures that offer a broad range of investing options. Today’s exchanges are now on the frontline in pioneering new ways of using crypto as a payment means.

Users also want to have clarity on the regulation of crypto exchanges. Currently, regulatory bodies in the UK and US are consulting, on their own about matters regulation and we may likely have their recommendation in the coming months.

The number of crypto exchanges budding is building more room for competition. Below are three distinguishable factors that are paramount to an ideal centralized crypto exchange site.

Top Level Infrastructure

Most digital currency exchange sites are integrating high-caliber infrastructure to their systems. This inherently means the transparency and functionality common with the traditional Forex markets will now be integral to centralized crypto exchanges as well.

Exchanges with high liquidity ratio, enable fast transactions and at reasonable prices. Popular exchanges are now offering greater liquidity via the shared order book technology connecting traders to the international markets. In addition, new generation crypto exchanges are capable of handling greater volumes of trades at international and institutional grade levels.

Users have evolved. They are now more vigilant when it comes to exchange sites. The exchanges consequently have to adapt and many of them are now becoming legal. We are witnessing more exchanges applying for regulatory approval. The Gibraltar Financial Exchanges has approved a number of exchanges and more are still applying.

Security In Crypto Exchanges

Security has been a major concern for users. An ICO rating security exchange examined 130 exchange sites and not a single one of them got an A* rating. Only 16% achieved an A rating and this has become a major concern. Exchanges still have a long way to go in regards to security, though it’s fair to say, some are way ahead in their focus on client fund protection.


You will find exchanges taking an extra step by offering depository accounts to hold assets prior and after a transaction. Others provide for isolated custody accounts to cater to hedge funds, exchange-traded funds, and mutual funds.

Of course not forgetting the basic security features that exchanges must provide. We talking of strong and complex passwords, 2 step verification for storage, ability to store assets offline – what is commonly called cold storage. Exchanges are also implementing other strategies like the constant monitoring of network activities and putting up perimeter systems to aid for more security. Dedicated softwares like OVHC cloud are also available.

Connecting Crypto To Payment Systems

Above all, the integration of payment systems and cryptocurrencies is what sets the new generation apart from the rest.

Tokenized offering have become a major contributor in the crypto economy growth. Although crypto traders have in the past been restricted when it comes to paying with crypto, it’s about to change.

The blockchain market is projected to reach $42 billion in 2022, this is according to research by Infoholic Research LLP. In no time, everyone will want a piece from the industry and integration of crypto to traditional payment systems will be effortless.

We are only at the beginning of the beginning of crypto exchange.

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