Crypto Asset Markets
Crypto asset markets are digital financial platforms for trading cryptocurrencies such as Bitcoin, Ethereum and Litecoin. These markets allow users to buy and sell crypto assets on a secure exchange platform. By doing so, investors can get exposure to the cryptocurrency market without having to purchase or store any coins directly.
History of Crypto Asset Trading
The first crypto asset exchanges emerged in 2010 with the creation of MtGox – an early bitcoin marketplace based in Japan which allowed individuals to trade bitcoins using conventional currencies at that time. Since then, many other platforms have developed offering different types of services related to cryptocurrency trading including margin lending, derivative contracts and more recently Initial Coin Offerings (ICOs).
Types Of Cryptocurrency Exchanges & Platforms
There are two main types of cryptocurrency exchanges: centralized exchanges (CEX) and decentralized exchanges (DEX). Centralized exchanges provide user accounts with deposit wallets where funds can be stored securely before being used for trading activities while decentralized ones are peer-to-peer networks built on blockchain technology allowing direct trades between buyers/sellers without requiring trust from third parties or custodianship over customer funds. Other than these two traditional models there has been a rise in popularity around Non-Custodial Exchange Aggregators like 1inch where users can compare prices across multiple DEX’s simultaneously increasing liquidity within this space by pooling order books together from different sources .
Risks Involved In Crypto Asset Markets
Trading cryptocurrencies is risky due to its high volatility compared with other asset classes; furthermore it involves significant risks such as fraud risk caused by lack of regulation over some jurisdictions or cyber security risk posed by hacking activities targeting personal data held within the exchange platform itself leading up potential thefts into customers funds if proper measures aren’t taken into account when setting up an account. Finally since most CEX’s deal also with fiat money they need appropriate licenses meaning not all traders will be able access them depending on their location given legal restrictions imposed by each jurisdiction regarding this type fintech businesses
