What is Cryptocurrency
Cryptocurrency is a digital cryptographic currency that allows users to send and receive payment in seconds, from anywhere in the world. What makes cryptocurrency unique, compared to fiat currencies, is that a central point of authority does not have control over it and cannot be dispersed at the government's disposal. The decentralization of the blockchain allows the digital currency to be immune to the ways of the government and financial institutions.
Unlike money transfers at banks, cryptocurrency allows you to send large amounts at any time, anywhere, with low transaction fees, allowing users to avoid the high fee that major banks tally on to transactions. Rather than going through a third party, people can send cryptocurrency peer-to-peer and electronically, thus reducing the friction and fees from ban.
Each cryptocurrency holder has a digital ledger for their coins known as a 'wallet'. This wallet acts as a storage for the digital currency and ensures that nobody can access tokens without permission. A public and private key are unique keys that protect the digital wallet. A public key is a cryptographic code that users use as a way of sending and receiving virtual currencies, similar to an account and routing number at a bank, while a private key is what permits a crypto holder possession to the funds on a specific address.
RUBIX CRYPTOCURRENCY EXCHANGE
What Cryptocurrencies can I buy?
There are more than two thousand cryptocurrencies to date, and that number is continually fluctuating. Not every one of these 2000+ tokens is relevant today, considering many of the tokens are left abandoned over time. A majority of the investment money that is being used to buy cryptocurrencies is focused on a relatively smaller group of coins called ICOs (Initial Coin Offering). Without interest from investors, projects can get abandoned, leaving a cluster of abandoned digital coins.
Although there have been many digital currencies that have failed throughout the years, there are many cryptocurrencies that have stuck around and are available for crypto exchange, like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. These currencies are some of the leading cryptocurrencies by market cap and are available to buy on Rubix.
What is a Cryptocurrency Exchange?
A crypto exchange is defined as a business that allows its users to trade cryptocurrency or digital assets for other assets, such as conventional fiat money, precious metals like gold or silver or other types of digital currencies.
A crypto exchange can potentially be a market maker that typically takes the bid-ask spreads as a transaction commission for services or, as a matching platform that may charge a fee.
A crypto exchange can be a “brick and mortar” operation or can simply be an online platform, as a brick and mortar business, it can exchange traditional payment methods and cryptocurrencies over the counter (OTC) as well as electronically, an online exchange may only exchange electronically transferred monies and cryptocurrencies.
An “Over The Counter” (OTC) trade is when market participants can exchange large amounts of cryptocurrency anonymously and has become increasingly popular with miners and large institutional players such as hedge funds, asset management firms and professional high volume traders. To give an example, on a cryptocurrency exchange, three people who are selling their Ethereum are requesting to get ETH/USD 295.75, ETH/USD 297.55, and ETH/USD 298.00. The investor who initiates an order to buy Ethereum will have their order filled at the best ask price of $295.75. If only five Ethereum are available for the best ask and ten coins are available for
$297.55, and the trader wants to buy ten at market price, his order will be filled with five tokens at $295.75 and the remaining five tokens at $297.55.
Cryptocurrency Exchanges require users to authenticate their identity and take a multiple step verification process in order to purchase bitcoin or other cryptocurrencies on their exchange. From there, users have the option to acquire crypto with several different payment methods, including credit or debit cards, direct bank transfers, bank wires, and many other options. In most cases, the exchange will require a minimum transfer of around $10 to get started. A user that is looking to cash out their earnings can take similar measures to withdraw the funds from their account that they took to purchase. Many exchanges have a limit on the amount that you can transfer away from your account at a given time, so users need to be cautious and take steps to increase the amount that they can cash out.
Currently, some cryptocurrency exchanges choose to operate outside of the western countries due to regulation and compliance issues, however, they do maintain bank accounts in several countries including the western countries in order to facilitate deposits into various national fiat currencies.
Some exchanges may accept credit or debit cards, wire transfers or other forms of payment in exchange for cryptocurrencies. Some can send cryptocurrencies to a user’s personal cryptocurrency wallet and even convert digital currency balances into an anonymous prepaid card which can be used to withdraw funds from ATM’s worldwide.
Additionally, some exchanges also offer the option to convert precious metals backed digital currencies into real world commodities like silver or gold.
What is a Decentralized Cryptocurrency Exchange?
Many cryptocurrency or digital currency exchanges are subject to strict regulations handed down by the SEC in the US who in 2018 maintained that "if a platform offers trading of digital assets that are securities and operates as an "exchange" as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration". The Commodity Futures Trading Commission now permits the trading of cryptocurrency derivatives publicly.
When it comes to crypto, traders must always be cautious and do your research when choosing a P2P crypto exchange. There have been many traders that have suffered significant losses due to lack of research and not following basic rules of thumb such as never leaving your cryptocurrencies on an exchange for long periods or storing cryptocurrencies in a hot wallet as this will draw the attention of many a hacker.
One example of this would be the notorious MT. Gox debacle wherein Feb of 2014 Mt. Gox the largest cryptocurrency exchange at that time, suspended trading, closed its website and exchange service, and filed for bankruptcy protection in Japan from creditors. In April 2014, the company began liquidation proceedings. This was the result of a significant theft of Bitcoins that were stolen straight out of the Mt. Gox hot wallet over time, starting in the late months of 2011.
Cryptocurrency exchanges are still in the early stages of development and offer great potential not only facilitating exchanges and trades for traditional fiat currencies like the US Dollar and cryptocurrencies such as Bitcoin and Ethereum but will also provide the ability to trade smart contracts which represent assets such as real estate, autos, memorabilia and more so hang on tight because this ride is just getting started.
What is Rubix?
The Rubix wallet Rubix simplifies many of the issues mentioned above faced by other cryptocurrency or digital currency exchanges, not only in the way trades are handled but also in security, transaction speeds, rates and fees, verification times, access to your funds and support.
Rubix.io utilizes deep liquidity pools to exchange currency. Rubix.io still gives users the option to recover their account. Rubix.io servers hold no cash, passwords, or private information. They have industry-leading encryption. In later versions, users will have the option to purchase and cash out ANY cryptocurrency with a credit or debit card.