Here is a reality that many exchanges may find difficult to accept, but do not have much choice; the fact that Binance is a big deal when it comes to the cryptocurrency space. It is a company that has taken over a very big piece of the industry; enjoying the liquidity, dictating the majority of the trends and forcing other exchanges to fight for a piece of the market share. That is, it is an exchange that has left other exchanges with no other option but to fight tooth and nail to make a space for themselves in this thriving space.
The fact is, while most exchanges are not actually trying to take Binance’s place in the industry, they do feel frustrated that they have to survive in the exchange’s shadow while still trying to be successful.
The Growth of Binance Will Continue
Binance is viewed as a giant exchange that is continuously growing, and there are no signs of them slowing down. According to a report by a new exchange ranking system, it was revealed that up to 1.9 million Bitcoin (BTC), which are worth $14 billion, is stored with various centralized exchanges. A big chunk of this is stored with Binance and on a daily basis, this exchange engages in 2.5 million trades. To put things into perspective, Binance appeared in the headlines last year after moving $1.3 billion of Bitcoin within a single transaction. Despite this, while Binance excels as a spot exchange, it still has a lot of catching up with its futures exchange which was only launched in September this year.
As time goes, Binance continues to work hard to provide the best services and products for its customers, releasing new products almost on a daily basis. This week, Binance announced the launch of zero-fee tezos staking. It is a move that strongly challenges other custodians such as Gate.io, who charges 33% and Coinbase, who charges 25%. It is clear that Binance is prepared to carry the costs in return for new clients.
What About the New Exchanges?
For the new exchanges in the market, they have no option but to get creative when it comes to attracting new business. Competing with giants, such as Binance, Huobi, and Coinbase, is a big challenge, and as a result, these exchanges are not copying Binance’s tactics but instead, they are going for smart moves to attract customers.
Stormgain is an example of a new crypto exchange, feeling the heat of Binance. According to its CEO, Alex Althausen, the market does not need yet another Binance or a clone of one of the top exchanges. It will not do the market any good by introducing the same features that already exist in the system. Instead, Althausen believes that the only way to win is to come up with something new.
He further explained that his company is coming up with new tools that will equip traders with more skills and education for them to gain more profit. Some of the things he talked about include free demo accounts to help their traders learn and understand the cryptocurrency world as well as platform-integrated trading signals.
In addition, Emirex is a Dubai based company that oversees and mostly monitors the Digital Commodities Exchange and the Bitcoin Middle East Exchange. The company’s co-founder, Irina Heaver, stated that there is room for more exchanges in this space yet it is imperative to meet the specific needs of the traders based on their geographical location. This includes addressing language requirements, sharia compliance, product familiarity and more. The key here, according to Heaver, is localization.
Despite its major success, Binance still remains the most targeted exchange by attackers. It suffered a loss of $40 million in May this year from a hacking attack. While this is small change for the likes of Binance, the exchange is constantly taking the necessary steps to tighten the security and procedures of its exchange.