Crypto exchanges are in existence since the introduction of cryptocurrency, but how these crypto exchanges are transforming the finance world? Get to know that here.
In the past few years only, we got to see a big growth in the crypto market where not only the users but the crypto-related services grew. In terms of services, we are talking about the exchanges like decentralized and centralized ones, lending and borrowing providers, etc. According to the coinmarketcap, there are 529 exchanges but there are many more which aren’t listed there. Actually, these exchanges are the most favored method for crypto trading by crypto traders.
Crypto Exchanges Are Transforming The Finance
Cryptocurrency is growing the global economy for any country as here people are trading (buying or selling). In India even when crypto trading isn’t legal but the government has already placed a massive tax on crypto trading. This massive tax includes 1% TDS and a 30% tax deduction to boost the economy.
The Finance minister of India, Nirmala Sitharaman was asked "why there’s a tax when the government doesn't approve of cryptocurrency? She answered that just because crypto isn’t regulated in India yet doesn’t mean users can exploit it. The users will have to pay the taxes for profit they made on crypto whether it's regulated or not.
India is not clear about the placement of cryptocurrency for tax, for now, the Income tax act (1961) is implemented. Different countries have categorized it differently but gaining the tax on crypto is the same for all. For example, the USA considers cryptocurrency as property, and tax is implicated when it is transferred. Whereas Canada and UK have the tax implication as income tax and capital gain tax. Canada is considering crypto as a commodity whereas the UK considers its capital assets.
Cryptocurrency exchanges have a high employee occupancy which is giving multiple job opportunities to people. This way the exchanges are creating new economic opportunities. Crypto itself has governed new job profiles which require new and advanced technological skills. With these features, technological advancements are seen in all countries. And that is why crypto exchanges also hire for better job profiles and create new technologies to work on that.
In the end, crypto exchanges are participating in economic growth, introducing new technologies, promoting entrepreneurship, and creating job opportunities to contribute to the global economy.
Why the demand for cryptocurrency exchanges are increasing?
The increasing need for a cryptocurrency exchange is more than just to fulfill user demand. Cryptocurrency exchanges have added so many good features and benefits for their users that they have become the preferred medium.
These cryptocurrency exchanges are the medium for users to buy, sell or trade cryptocurrencies in easy and informative ways. In case they get into any situation they get customer support from the exchange to guide them in that.
Cryptocurrency is free from the authority of the government, and banks. And that's why the users also needed a platform who are not the traditional financial institutions like banks. Cryptocurrencies are accessible all around the world as they can be traded or accessed everywhere and that service is maintained by exchanges. The exchanges enlist all the cryptocurrencies.
It is seen that crypto adoption is more in developing countries and the major reason for that is that traditional financial services and sectors aren’t that developed. Either they lack in terms of services or in terms of currency value or dollar dependence. So using the crypto or crypto exchange makes it more feasible for them to gain financial freedom and make them a part of the global financial system.
Security and Technical Features
The security features provided by the cryptocurrency exchanges gave a huge assurance to people and that factor influenced more people to join the crypto community. Usually, people do not prefer to get into something because of their fear of losing money or not being able to understand how to work with things. And that problem was covered by the exchanges and more and more users got connected to cryptocurrency because of good exchanges.
Even traditional financial systems are upgrading now but the speed of development is still slow and the development of scammers and hackers is much faster. This way the normal banks or service providers are losing in front of cryptocurrency exchanges.
Overall, crypto exchanges are transforming the world of finance by providing a new, decentralized way for people to buy, sell, and trade cryptocurrencies. These exchanges are making it possible for more people to participate in the global financial system, while also promoting financial inclusion, security, and economic growth.
Crypto exchanges are transforming the finance world as they are doing a lot more than just providing services. These are widely used by traders for crypto buying and selling and to utilize features for better trading. Crypto exchange has succeeded to create a huge user base but is also playing a more important role in introducing advanced technology and boosting the economy.
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