Are all of the Indian cryptocurrency exchanges going to be dead?

John Azar Ruffel

John Azar Ruffel, Développeur de Blockchain avancé, expert en trading de crypto-monnaie

Répondu il y a 38w · L'auteur dispose de réponses 294 et de vues de réponses 345.1k

The price of crypto-currencies varies from one exchange to another. This is not the problem with any particular exchange. Actually, the real facts about Crypto-currency exchange are hidden from us. Let discuss some true problems. I think, by knowing those facts you can easily find out how crypto-currencies exchanges are making profit even if you make loss.

The foreign exchange, or crypto-currency market is high risk and sees more than $5 trillion dollars traded daily. Traders have to go through an intermediary such as a crypto-currency courtier to execute trades. No matter the gains or losses sustained by individual traders, crypto-currency brokers make money on commissions and fees, some of them hidden. Understanding how crypto-currency brokers make money can help you in choosing the right broker.

Role of the Foreign Exchange Broker

A foreign-exchange broker takes orders to buy or sell currencies and executes them. Crypto-currency brokers typically operate on the sur le comptoir, or OTC, market. This is a market that is not subject to the same regulations as other financial exchanges, and the crypto-currency broker may not be subject to many of the rules that govern securities transactions. There is also no centralized clearing mechanism in this market which means you will have to be careful that your counterparty does not default. Make sure that you investigate the counterparty and his capitalization before you proceed. Be vigilant in choosing a reliable crypto-currency broker.

Crypto-currency Broker Fees

In return for executing buy or sell orders, the crypto-currency broker will charge a commission per trade or a spread. That is how crypto-currency brokers make their money. A spread is a difference between the bid price and the ask price for the trade. The bid price is the price you will receive for selling a currency, while the ask price is the price you will have to pay for buying a currency. The difference between the bid and ask price is the broker’s spread. A broker could also charge both a commission and a spread on a trade. Some brokers may claim to offer commission-free trades. Actually, these brokers probably make a commission by widening the spread on trades.

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Les propagation could also be either fixed or variable. In the case of a variable spread, the spread will vary depending on how the market moves. A major market event, such as a change in interest rates, could cause the spread to change. This could either be favorable or unfavorable to you. If the market gets volatile, you could end up paying much more than you expected. Another aspect to note is that a crypto-currency broker could have a different spread for buying a currency and for selling the same currency. Thus you have to pay close attention to pricing.

In general, the brokers who are well capitalized and work with a number of large foreign exchange dealers to get competitive quotes typically offer competitive pricing.

Risks of Foreign Exchange Trading

It is possible to trade on margin by depositing a small amount as a margin requirement. This introduces a lot of risk in the foreign exchange market for both the trader and the broker.

The Bottom Line

Those contemplating trading in the crypto-currency market will have to proceed cautiously—many foreign-exchange traders have lost money as a result of fraudulent get-rich schemes that promise great returns in this thinly regulated market. The crypto-currency market is not one in which prices are transparent and each broker has his own quoting method. It is up to those who are transacting in this market to investigate their broker pricing to ensure that they are getting a good deal.

I think you have got your answer. I generally don’t get time to write here but i want to share my knowledge with everyone. I thank everyone for reading my long answer.

Anand Dubey

Anand Dubey, forex / share / cfd trader / gestionnaire de fonds chez Keonconsultancy.com

Répondu il y a 38w · L'auteur dispose de réponses 258 et de vues de réponses 150.2k

Are you talking about companies/exchanges like Zebpay, Unocoin etc which are offering crypto investments such as Bitcoin?

If yes, these private companies are unregulated and people are suffering with problems in them already. Search for their reviews and you will find what people are experiencing.

They will not be dead but people will be dead (financially) because they are not giving withdrawals in proper manner. They maintain big difference between sell and buy prices.

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Recently I got an Indian client who tried paying from Zepbay ( a Pvt. Ltd Indian company) to Skrill via Bitpay (the oldest and biggest Bitcoin payment processor in the world) and payment was not processed, he contacted Zebpay but got no solution in 13 days and then he requested for withdrawals and is still pending for more than a week.

They do whatever they wanna do with their customers because no regulation is controlling them.

They may be regulated in future but this is not gonna happen soon. Or else, they can simply shut themselves down rather than being regulated and pay taxes to govt. Everything is uncertain.

Meanwhile, their customers are gonna be dead (financially) but these companies/exchanges may or may no be dead. Even if they will be dead (shut down their operation), it will be their choice. By that time, they will have made billions from gullible people.

I AM NOT AGAINST INVESTMENT IN BITCOIN BUT DO WITH REGULATED COMPANIES. For example, open an account in a company regulated in UK by FCA. FCA doesn’t only regulate but also compensate investors if company shuts down or defaults.

We ourselves are trading/investing in Bitcoin but not in India, we do in broker companies of UK with a margin facility and in a strong regulatory environment. There we don’t have risk of anything because of FSCS (financial services compensation scheme of UK for customers of companies regulated by FCA UK). Therefore, we are making amazing profit in Bitcoin fearlessly.

Priyanka Sharma

Priyanka Sharma, Stratège SEO | Stratège en marketing numérique chez Absoltz Company (2016-present)

Répondu il y a 36w · L'auteur dispose de réponses 257 et de vues de réponses 29.7k

No, I don’t think so. There was this news that some of the top Indians banks were freezing accounts of significant crypto exchanges. Also, recently a news came that Indian finance minister Arun Jaitley has declared that he does not consider Bitcoin as a legal tender. But Indian media has misinterpreted and declared the bitcoin ban in India. However apart from all these warning and rumors, India’s leading cryptocurrency exchange ‘Zebpay’ recently announced the addition of litecoin to its trading platform which is a major step amid controversies.

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Janak Prajapati

Janak Prajapati, Software Developer at Adzmedia (2012-present)

Répondu il y a 38w

Yes, There is very good possibility that these exchanges might get banned in near term.

Cryptocurrency is not legal tender in india for now.

If you really want to invest in cryptos. Try exchanges like binance or kucoin, these exchanges are regulated and have very low transaction fees.

Ankit

Ankit, Consultant - Financial Service

Répondu il y a 38w

There is nothing to say all of the cryptocurrency is going to be dead, It just a myth apart from this nothing else. As you know there are many of investments are already invested and the process, facts behind that type of currencies are going towards transparency.

So don’t think this is going to happen.

Seemaa Arora

Seemaa Arora, Studying Cryptocurrency

Répondu il y a 38w · L'auteur dispose de réponses 229 et de vues de réponses 77.7k

At this point of time can’t say anything about this new age financial instrument. The core dilemma lies in its ideology that doesn’t want to bound itself to regulatory framework while on the other hand question of liability arises if it doesn’t follow such regulatory norms. So can’t say anything about this.

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