Typically, blockchain exchanges and traditional exchanges, like the Nasdaq or London Stock Exchange, have been seen as opposites where blockchain exchanges are viewed as a more open, community-focused option. In contrast, traditional exchanges are viewed as relics of the old financial system — stuffy and contrary to blockchain technology and crypto. This now appears to be transforming, as blockchain exchanges have finally commenced forming a strategic alliance with conventional stock exchanges, which provide the blockchain exchanges to utilize their technology in their operations.

Also, read – OMC Group Launches Tradable Blockchain Game Omni Pets

Problems with traditional asset exchanges

There are many difficulties with traditional exchange platforms that blockchain technology and exchanges can help to fix. Firstly, traditional exchanges open and close at set times, limiting the trading movement of retail investors who may be involved during market hours. Additionally, traditional exchanges can have costly and complex fee schemes for trading. This can also put off investors with less money from trading collectively.

Why Blockchain Exchanges Are Now Using Traditional Exchange Technology

Read here : https://t.co/CvNK0eDUEO#bitcoin #btc #ethereum #invest #money #finance #trade #btcusd #eth #ripple #xrp #fintech #technology #litecoin #monero

Follow us for latest #crypto and #blockchain new… pic.twitter.com/d9s5Db9iOs

— Plezna (@Pleznaofficial) July 29, 2020

Various traditional exchanges are still somewhat out of reach for the more small-time retail investors who may even want to get entangled in trading. This is because many traditional exchanges do not provide fractional purchasing, which is the act of buying a fraction of an asset. Rather, the user will be needed to buy a certain amount of the asset or a single asset value.

Notwithstanding the inherent advantages of blockchain-operated exchange platforms, there are still many benefits that can be gained by blockchain exchanges using technology designed by traditional exchanges. Some traditional exchanges have extended trading systems that can be easily scaled as trading volume increases, with the exponential rise in the popularity of cryptocurrencies. This ensures scalability is vital to a cryptocurrency exchange’s operations. Additionally, these trading systems experience low downtime and high resilience, which ensures a seamless trading experience.

Furthermore, there has been a popular belief by many detractors that crypto exchanges are like the Wild West and are unregulated. By forming alliances with traditional exchanges, crypto exchanges display legitimacy, and traditional exchanges, like the Nasdaq, therefore, would not consent to operate with the specific blockchain exchanges otherwise.

Eventually, many cryptocurrency exchanges have earlier faced issues of unethical trading. Meantime, traditional stock exchanges have systems in place that automatically survey any trading activity on their platforms. The partnerships between traditional stock and asset exchanges and crypto trading platforms can conceivably help to continue growing, whereby cryptocurrencies are seen as valuable, safe, and valid assets to be traded.