Today, almost the entire world knows about cryptocurrencies and most importantly, the largest cryptocurrency in the entire world, Bitcoin (BTC). Despite experiencing a bearish trend since mid-April, Bitcoin is still worth over $30k, and soon its price would pick up. At present, the overall cryptocurrency industry is considered among the top industries in the entire world. Even after having its market capitalization cut almost in half due to the May downtrends, the overall market capitalization of cryptocurrencies is around $1.4 trillion.
When the cryptocurrency industry was at its peak in mid-April, its market capitalization was well over $2.3 trillion and Bitcoin was sitting at $64k per BTC. Even the second largest cryptocurrency by market capitalization, Ethereum (ETH) was experiencing an all-time high of over $4k per ETH. However, none of this would be in existence if the cryptocurrency exchanges would not be around. Cryptocurrency exchanges are the very reason why the entire world today knows about cryptocurrencies in the first place.
Initial Stage of Cryptocurrencies before Crypto-Exchanges
If you are new to the cryptocurrency industry then it is highly likely that you got to learn about cryptocurrencies in late 2020. However, if you know about them even before that, then the max you would know about them would be back in 2013 or 2014. This was the time when Bitcoin (BTC) started earning a reputation and experienced a rise in its price. Surprisingly, Bitcoin had been launched back in 2009.
For the first time in the history of cryptocurrency industry, the sector got its first cryptocurrency exchange back in 2011. Although it is disputed but as per many claims, the first cryptocurrency exchange was Kraken that helped Bitcoin and other cryptocurrencies earn the status they have today.
Before the foundation of cryptocurrency exchanges the cryptocurrencies had almost no value at all. Before crypto-exchanges, the only way to acquire cryptocurrencies was through mining. However, as the cryptocurrency exchanges came into being, people found new ways for acquiring cryptocurrencies.
Ways of Acquiring Cryptocurrencies through Exchanges
If you were to join the cryptocurrency industry before 2011, the only way you could have acquired cryptocurrencies would be through mining. Be advised that the second-ever cryptocurrency was introduced in 2011 after Bitcoin’s foundation in 2009. However, the cryptocurrency exchanges changed the history forever, offering new ways for you in acquiring cryptocurrencies.
Purchasing Crypto through Exchanges
The first utility that the cryptocurrency exchanges offered you was the ability to purchase cryptocurrencies through them. As cryptocurrency exchanges came into being there was no more need for you to mine them. Instead, you could purchase them directly through exchanges at their market price.
Trading Crypto through Exchanges
Apart from purchasing cryptocurrencies, the exchanges also offer you the option of trading cryptocurrencies. Through this method, you can exchange the cryptocurrencies in your possession with the one that you wish to acquire.
Exchanges Mine Cryptocurrencies for You
After the foundation of crypto-exchanges, the process of mining had almost gone extinct, as you could directly purchase them instead of going through the trouble of mining them. However, since the end of 2020, as cryptocurrencies picked up the pace, the mining trend has made a comeback. Now, everyone wants to acquire cryptocurrencies through mining. If you wish to do the same but do not want to go through the hassle of setting up mining rigs, then you have exchanges mine cryptocurrencies for you. At present, many cryptocurrencies offer this utility and mine cryptocurrencies on your behalf. All you have to do is make an investment and start with your investment plan.
Cryptocurrency Exchanges are going Above and Beyond
Since 2011, the cryptocurrency exchanges have come a very long way. Cryptocurrencies are just digital assets that exist through blockchains but exchanges are the entities that provide them market value and reputation. Since their advent, cryptocurrency exchanges have made a name for themselves by offering you different newer and unique products. The competition between cryptocurrency exchanges has led them to introduce more products and tremendous amount of innovation.
Cryptocurrency exchanges are the very reason why mainstream institutions have been attracted towards the cryptocurrency sector. The exchanges have constantly come up with newer ways to interact with mainstream institutions and bring more crowds to the industry. They have even come up with many tools, features, and education content to help improve your trading skills in the cryptocurrency space.