Hello there friend and welcome back to another educational video. Today I have the honor of discussing cryptocurrency exchanges and the value they add to the blockchain ecosystem as a whole.
Trading
The first one, which may or may not seem obvious to some, is trading. Before altcoins came along, there wasn't as much need for this option because Bitcoin was the only game in town.
Now, since there are hundreds of digital assets in place, exchanges make for a great place to trade one coin for another. Say someone pays you for a service in Ether but you like Steem instead. You can simply deposit that ETH into an exchange and trade it for Steem.
There is also what is called day trading which I do not participate in. But if done correctly, day traders can earn significant revenue from trading their coins for others and counting on market fluctuations to allow them to buy low and sell high.
Cashing Out
My mother has asked me in the past..."is crypto real money"? Of course I tell her yes by explaining that I can take my coin right now and pull it out as fiat currency, dropping it directly into my bank account.
It's hard to argue against the fact that crypto is real money, and that exchanges allow people to use it to pay for everyday things such as rent or groceries after they cash it out.
Soon I imagine, we will be paying for those things in crypto when it becomes a more widespread payment method throughout the world.
Brings Exposure to New Projects
Every day, the blockchain space welcomes new projects that hit the ground running. One way this is accomplished is through mass exposure on exchanges.
Exchanges have waves of traffic hitting their sites on a regular basis. One of these exchanges is called FreedomEx @freedomex which allows for a multitude of smart media tokens to be listed in addition to traditional crypto assets.
In my opinion, bringing exposure to new projects is one of the greatest value-adds an exchange can offer. The more dApps and projects that can be broadcast to the world, the better. In order for the blockchain ecosystem to flourish, we are in constant need of fresh innovation moving it forward.
Thank you friend for stopping by this talk on exchanges. Feel free to follow @thedailyclimb for more videos like this. See you in the next one :)
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Exchanges will be the key for the growth of the ecosystems being created as they will be how the economy moves between them over time!
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What is your favorite exchange to use currently?