More than $1 billion worth of digital currency has been stolen in just the first six months of this year. This amount isn’t far off of the $1.3 billion in losses from all internet crime throughout 2016, according to the FBI. Cryptocurrency exchanges are the biggest targets.
Another week, another hack, another drop Since January, we’ve seen crypto exchanges being hacked one after the other… And each hack is usually followed up with a sharp price drop across the crypto market. In January, CoinCheck; February, BitGrail; April, Coinsecure… and the most recent, Coinrail.
On Sunday, June 10, South Korea’s seventh-largest cryptocurrency exchange announced that it was hacked for an estimated theft of US$42 million. Bitcoin fell more than 10 percent to a low of less than $6,500. Moreover, the decline followed a report from The Wall Street Journal that U.S. regulators are investigating the potential price manipulation of BTC at four major cryptocurrency exchanges.
Plunges in the crypto market are generally triggered by malicious activities or events, primarily against centralized exchanges. We usually then observe an extended price correction period of the cryptocurrencies.
The problem is not the bitcoin blockchain itself, which is much more secure than a banking network. The Achilles heel is the how users choose to access the bitcoin and other crypto blockchains.
Centralized exchanges: weak point of the market There is no doubt that centralized exchanges made cryptocurrencies accessible to a wide audience around the world. But more than 30 cryptocurrency exchange hacks in last 9 years were made against centralized exchanges.
When users buy cryptocurrencies on centralized exchanges, like Kraken or Binance, they are never really in true ownership of their crypto assets. True ownership would mean that upon purchase, their crypto assets would be transferred into a digital wallet with a private key, only accessible by the owner. Instead, the balances are managed off-chain by the exchange and the money deposited is concentrated in the exchange wallets.
In this scheme, users are susceptible to losing access to their assets if the platform goes offline or experiences downtime. And even worse, users could potentially loose all of their funds if the exchange is hacked. This is why most assume the major threat to cryptocurrencies is not volatility, but the fact that 99% of cryptocurrency trades are issued on centralized exchanges.
Most exchanges are simply not designed to provide an adequate level of security when having a large number of assets under management.
Current centralized exchanges do not show the professionalism nor the efficiency of the traditional financial markets and as a result fall into practices like market manipulation and front-running. This lack of transparency is currently fatal for cryptocurrencies and continues to affect thousands of victims around the world. Centralized exchange security shortages, viewed as a quality to “facilitate trade”, excessively disturb the balance of the entire crypto market. This situation, which is increasingly hard to justify, needs a long-term solution to fix flaws in user protection and access to funds.
A Cryptocurrency price correction As for extreme volatility, it is common for large traders to short cryptocurrencies in order to drive prices down and then buy back at low prices. This kind of “crypto manipulation” is not much different from the present day manipulation of securities, but over time it should stabilize, especially as the market becomes regulated and institutional investors start getting involved in cryptocurrencies on a larger scale.
The lack of trust in the security level of some exchanges can also be attributed to panic-selling. People fear their assets being hacked and in turn sell off their cryptocurrency. Moreover, we can not underestimate the impact of media on the market. Negative media coverage of cryptos ignite more crypto selling, FUD, and the cycle goes on and on…
History shows us that each exchange hack has always resulted in uncontrolled chain reactions. However, can we speak about market correction when the price keeps changing and fluctuating due to market manipulation, massive hacks, media headlines, etc …
Of course, not all centralized exchanges failed but the hack of some of the major ones, coupled with government pressure, catalyzed the emergence of decentralized exchanges.
Decentralized exchanges offer a great alternative to fully centralized exchanges, the main being the ability for traders to gain custody of their own funds and manage them as they please. However, they are not fully scalable and liquid enough for institutional investors. The solution lies in hybrid exchanges, such as the one LGO is currently building.
We posted a great article concerning this topic last week, “The Truth about Decentralized Exchanges” In this article, we discussed the reality of fully decentralized exchanges, evaluating their feasibility in relation to their scalability.
A market transformation more than a correction Attacks against digital currencies are rapidly becoming part of the ecosystem, and users should stay away from centralized crypto exchanges as these types of attacks will happen again.
This insecurity prevents potential investors from engaging themselves in crypto-currency. Obviously, the market will become reliable once strong security is provided and guaranteed.
Crypto market needs a reliable and long-term alternative to stabilize prices, and not only a correction. At LGO, we have been striving, from day one, to provide a solution that will transform the market for more fairness and transparency.
LGO will bring together the benefits of both decentralized and centralized exchanges in our unique hybrid exchange. We will prevent any type of crypto hack or theft by using multisig wallets and giving our users full control of their funds.
LGO will never be hacked in such way centralized exchanges are currently experiencing. Their weakness is the wallet. This is one of our strengths thanks to a new asset management approach. All of these exchanges are suspected of market manipulation, while LGO’s main goal is to renew confidence in the crypto market, by being demonstrably fair and in compliance with financial standards.
About LGO LGO Markets (https://lgo.markets
) is a demonstrably fair and premium exchange for institutional investors. It incorporates a decentralized ledger within its proprietary centralized platform in order to guarantee the inalterability, temporality and transparency of the order book and ensure a fair trading environment.
Join our community on Discord Follow us on Twitter, Facebook & Instagram Subscribe to our subreddit
If you are interested in a history-minded look at Bitcoin and crypto up until the year of 2014-15, this book is a solid place to get it. The authors also signed off on another blockchain-focused work called “ The Truth Machine: The Blockchain and the Future of Everything ”, which focuses on blockchain’s potential to replace trust-based systems of today. For readers who like bitcoin, technology, and history, this book makes for an amusing and interesting read. 4.17: 5: 255: 3: 5: 4: The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order: Written by Wall Street journalists Paul Vigna and Michael Casey, The Age of Cryptocurrency: How Bitcoin and the Blockchain Are Challenging the Global Economic Order ... Order book depth of the BTC/USDT market pair on Binance. In more general terms, the depth of the order book may also refer to the amount of liquidity that the order book can absorb. The “deeper” the market is, the more liquidity there is in the order book. In this sense, a market with more liquidity can absorb larger orders without a ... When it comes to User Interface, Binance has two versions, basic and advanced. They are both great looking and slick, offering views of trade history, order book, currency pairs. The advanced version offers more-in-depth technical analysis of crypto assets value over time. KuCoin’s User Interface is also great. They improved it at the end of ... (Dalio’s new book, The Changing World Order, is also required reading for investors.) Think and Grow Rich by Napoleon Hill Amazon rating: 4.7 stars (26,200 ratings) A self-help and personal development book, this little classic is probably the easiest read on the list. The story goes that Napoleon Hill was interviewing the great steel tycoon Andrew Carnegie, who offered to connect him with t There are lots of bitcoin, blockchain and crypto books out there - but which ones are the best for you to get a deep understanding of what's going on quickly. Luckily for you - here at CryptoCompare - we've done all the hard work for you and spent hours diving in and out of all the various books and these are our top picks. Binance is a cryptocurrency exchange website. This tag is for questions related to the Binance API and usage of Binance API wrappers. This tag is not specific to any programming language. History of Binance. It was launched in July 2017 in China following an initial coin offering (ICO) that raised $15 million from investors, who received the native Binance Coin (BNB) in exchange for their capital. Key figures at the company are its founders, Changpeng Zhao and Yi He. The former is the CEO of the fast-developing and expanding company, whose extensive experience working at OKCoin ... Binance Exchange. The cool part about Binance is that if you click ‘Order History’ instead of ‘Trade History,’ it will show you all of your all of your trade history along with all the open orders you have put into the order book and then cancelled in the past.So it shows everything you will find in ‘Trade History’ in addition to all of your cancelled trades.
This video gives 4 simple tips on determining future bitcoin short-term price movement using Cryptowatch's order flow. Get the Learning Course to trading Ord... In this series of videos, I'll be showing you some crypto trading tips. And in this video, I show you how to create a market order to buy or sell Bitcoin or other cryptocurrencies. And I show you ... In today's video I will show you how to place strategic buy and sell orders in the Binance Cryptocurrency Exchange order book in advance of price movements, so you get the best prices when you buy ... Binance considered rolling back the Bitcoin chain in order to recover stolen funds. How would that have happened? How likely is it that such a recovery method would be executed in the future? BITCOIN CONTINUA A ALTA + NOVO INDICADOR - ORDER BOOK DEPTH - Análise Técnica/Sentimento Investidor Moderno. Loading... Unsubscribe from Investidor Moderno? Cancel Unsubscribe. Working ... SUBSCRIBE if you enjoy these type of videos! Thanks for watching! MY WEBSITE: http://www.TheCryptoviser.com TWITTER: https://twitter.com/TheCryptoviser -----... Binance FIAT https: ... Trading Bitcoin w/ Joe Saz - A Look at Order Book via TRDR.io & Twitter Hack! Tone Vays 506 watching. Live now; How to Trade Options on Robinhood for Beginners in 2020 ... Curso gratuito para você entender o Bitcoin, as criptomoedas e o seu impacto no futuro 📑 - Arbitragem, compra e venda da mesma moeda em locais distintos. Ganhos na diferença de preços. 💱 🔔 Did you enjoy this video? SUBSCRIBE for more: https://www.youtube.com/c/nuggetsnews?sub_confirmation=1 📹 For more Resources & Content: https://nuggetsnews.... Binance tutorial [Entorno- Order book - Market Depth- Herramientas]Semillero de ingresos- Cryptolab - Duration: 23:28. Semillero de Ingresos 2,473 views 23:28