Cryptocurrency exchanges are popular FinTech applications that enable users to buy and sell different types of cryptocurrencies and altcoins. Crypto traders and altcoin enthusiasts use cryptocurrency exchanges to invest in cryptocurrencies. The popularity of cryptocurrencies has led to a spurt in crypto users. It makes developing and setting up cryptocurrency exchanges a lucrative business.
However, there are several challenges with cryptocurrency exchange development that need to be addressed proactively to avoid legal troubles and financial losses. Read further to understand how the challenges can be overcome, so businesses can efficiently run their operations.
Cryptocurrency Exchange Development Challenges
- Market Acceptance
Let’s take a detailed look at each of the above challenges.
Security is a major concern for crypto users. According to a survey conducted by Encrybit, about 40 percent of traders consider security the main bottleneck in the cryptocurrency exchange process. The growing security concerns of cryptocurrency users are backed by the increasing number of cyberattacks on cryptocurrency networks. Over the years, there has been a sharp incline in the number of DDoS attacks, Phishing attacks, and hacking instances. According to GIB, a cybersecurity company, cyberattacks on cryptocurrency networks increased by 700 percent in 2018. Besides, the ransomware attacks on cryptocurrency transactions have increased by a huge margin.
Several crypto exchanges have been targeted by hackers, black hats, and cybercriminals, causing losses that add up to millions of dollars. The list includes some prominent exchanges like Poloniex, BitFinex, Huobi, and Bitstamp.
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