Cryptocurrencies have been gaining dominance in the financial markets over the last couple of years. Besides embracing blockchain technology, more people are now looking into crypto trading. The market is currently flooded with over 5’000 coins, and globally, crypto enthusiasts are looking for ways to make money by trading these digital currencies.
LCX is a platform that provides users with an efficient trading platform without sacrificing security aspects. The crypto trading market is thriving, but it continues to face several issues. Some of these challenges are due to the high number of individuals dealing with cryptos, while others are due to current exchanges’ inefficiencies.
Overall, understanding these problems is the first step to solving them. LCX has taken time to understand these issues and is finding ways every day to help curb them. This article will explore a few pain points in crypto trading and how LCX is moving forward to sort them.
Pain Points in Crypto Trading
Here is a list of common issues traders face in cryptos and digital assets’ markets.
- Cyber Crimes
Cybercriminals have been taking advantage of digital assets from the word go. The history of cryptocurrencies is crippled with millions worth of dollars that have been lost in hacking and other online criminal activities. This factor, in turn, has a detrimental effect on the value of cryptos. Traders have lost hard-earned funds with zero chances of recovery since transactions are irreversible.
- Unreliable News
Spreading false information via social media platforms is one of the significant challenges that cryptocurrencies face. The crypto trading market comprises both pro and novice traders. Investors with little or no knowledge of cryptocurrencies and other users become victims of unreliable news. Therefore, they cannot determine if the information is accurate or not.
- Price Volatility
Different cryptocurrency platforms hold different prices for digital assets. It makes it harder for users to determine the most effective and promising ones to invest in. Since the market is highly unstable, users have to perform investment options carefully and find out platforms where they can trade at minimal fees for higher returns. Furthermore, the whales in the crypto market always get the chance to dictate asset prices.
- Slow Transactions
The cryptocurrencies systems get slower over time, as more individuals join the crypto trading world. When there are many transactions lined up on the blockchain, it takes longer to process and confirm them. In some crypto platforms, investors may have to part with higher transaction fees if they want faster transactions. The charges may not be affordable for every user. Being a volatile market, the more the delays, the higher the costs for investors.
Ponzi schemes are usually platforms that are in pursuit of defrauding innocent investors. Users get attracted to a crypto market that guarantees enormous returns on investments, and eventually, the platform’s site disappears together with the user’s money. Apart from frauds, ICOs manipulation leads to investors blindly putting their money in promises of increasing token price. Entrepreneurs exaggerate a coin’s popularity then withdraw from it later, leaving users with valueless coins.
- Unspecified Legal Frameworks
Legal frameworks or lack thereof in cryptocurrencies is a major issue hindering the investment potentials surrounding crypto markets. Several countries have regulatory measures for crypto exchanges. Nonetheless, many crypto users engage in illegal activities, including money laundering and tax evasions threatening the credibility of the cryptosystems.
LCX’s Role in Providing Solutions to These Problems
- Regulatory Compliance
Regulations and compliance have been a pressing issue considering most cryptocurrencies do not have specified legal stands on trading. However, LCX provides a platform, which puts transparency first.
Following the Blockchain Act implemented in 2020, LCX provides user rights to its customers, including contractual, securities, bankruptcy, consumer, and investors regulations. Hence, they assure customers of credibility in their digital asset ownership and avoidance of illegal involvements. Furthermore, the platform offers standardized crypto issuance and trading.
- A More Secure Platform
Decentralization has been the answer to most security problems in the trading industry. While maintaining user anonymity and control over their funds, the LCX system enables resilience to hacks and theft. Furthermore, the platform utilizes the Legal Entity Identifier and the International Token Identification Number (ITIN) to ensure that every digital asset has a unique security stamp. It makes it easier to track their use by both users and stakeholders. Transactions are immutable enabling protection against fraudulent activities and external threats.
Besides, LCX has options to allow users to store their assets with end-to-end encryption. They are also able to have control over their private keys, unlike most online wallets. Most crypto traders prefer cold wallets for security purposes. Nonetheless, this option comes with many inconveniences. The ability to store assets on the platform with assured protection makes it easier for users.
- Faster Transactions
Traders are entering the market every day with high expectations on speedier transactions. LCX avails its users with an option to make management and transfer of assets easier and faster. Also, by eliminating the need for third parties, transactions are directly involved while entailing anonymity, raising the trust, and lowering the costs associated.
- Reliable Real-Time Information
Falsified information on trading platforms on the Internet is on the rise every day. LCX provides users with real-time information on the ongoings within the crypto world. While utilizing different active sources, the network instills a reliable data platform that is non-technical and technical, depending on your understanding levels.
New investors who are susceptible to scams and misdirections can, therefore, put their worries to rest. LCX has a secure social media platform that engages its users in discussions and follow-ups on important information surrounding crypto markets. Contributions of major investment-based companies into the network enables investors to make sound decision making as far as crypto trading is concerned.
- News Desk and Social Insights
LCX Terminal already features an integrated news desk to offer traders the most important news right next to their crypto portfolio. With the recent partnership announcement with LunarCrush, LCX is expanding this functionality. LCX will be the first trading platform to integrate social signals and analysis for cryptocurrency markets. We learned from insiders that the upgraded platform is already being tested and will be launched soon.
- More Trading Options
LCX is providing new investors with more trading options, unlike in the traditional markets. The revolutionized platform allows investors to trade on different exchanges using a single interface. The efficiency of this process is unmatched. Moreover, LCX works under standardized and regulated conditions protecting its users from uncertainties that come with cryptocurrencies. For this reason, manipulations are impossible to penetrate the trading platform preventing the exploitation of novice investors.
Cryptocurrencies are on the rise, and nothing can stop them now. More digital assets keep arising in the crypto world. Trading will also increase as cryptos offer an alternative for traditional forms of investments.
However, this promise for a better financial future is always facing challenges as issues present in the crypto trading are ever on the rise. Unreliable systems, falsified information, and legal implications are a few of the trades’ pain points.
All the same, LCX is on a mission to ensure that the future of cryptos is secure while maintaining harmony with the traditional markets. The platform comes with some unique features that ensure crypto trading is a seamless process for every user. We can only wait to see what else is in store from the network to help curb more of the worries surrounding crypto trading.