The current virtual market has seen its share of ups and downs with new technology coming in. The rise of utility tokens has its spotlight for quite some time and now Security tokens are gaining traction to overcome the cons of utility tokens. Most of the market activity has come from utility tokens. But security tokens are gaining prominence over it. Bitstraq exchange is one such exchange that follows the current trend such as sentinel protocol and AI to be imbibed in its exchange, thereby providing a platform for traders.
Liquidity is the main obstacle for exchange and Bitstraq exchange overcomes the roadblock by introducing new techniques. Liquidity refers to the extent to which a market allows a certain level of assets to be bought and sold at a stable price. The lower the liquidity the more volatile the market will be. When large orders are placed, it causes the price to fluctuate drastically. So it is important for the liquidity to be high in order for the market to be stable.
The liquidity for a certain cryptocurrency depends on its demand. The demand can be higher resulting in a premium price that can be 10% higher than the actual price. This results in a higher cost than the original price to make the trade. A particular digital asset can have different rates on different trading platforms. Although this cannot be eliminated completely, it can be reduced. This is where Bitstraq comes into the play.
Mining Pool of Bitstraq
A mining pool is a pooling of resources by Miners who share their processing power over a shared network. For every mined block, the reward is shared equally. Since mining pools are large volumes of cryptocurrencies being mined simultaneously, the prices of the coins are stabilized on a greater extent. This obviously brings on high volume trades. By tapping in the mining pools, higher volume trades occur at Bitstraq exchange and decreases the volatility. Bitstraq’s mining pool brings stability to the exchange and allows traders to trade without any hassles.
By conclusion, Bitstraq reduces the liquidity of the exchange and continues to make a niche in the exchange market. Involve in the Bitstraq exchange to avail more benefits.
Know more:
Website: https://bitstraq.io
Facebook : https://www.facebook.com/Bitstraq/
Twitter : https://twitter.com/bitstraq
Telegram : https://t.me/joinchat/JM0LDUqXZ5LO3kQGn_NAyw