Blockchain technology is widely panned as the future, a stance embraced by most countries globally. Following an endorsement from Chinese President Xi Jinping, this call for research and investment into this technology has only grown stronger.
The Chinese crypto market has been a bellwether case study for other countries to follow, having seen a large influx of exchange activity and volumes.
The evolution of the industry there has also served as testament to the resiliency of numerous exchanges, such as BTCC, which has been one of the industry’s founding fathers so to speak.
As China’s inaugural cryptocurrency exchange, BTCC has continued to solidify itself as a market leader. Exuding confidence is crucial in such a dynamic and extreme market, such as the conditions that currently exist.
BTCC: Always Stable
During a period where the industry is defined by a litany of horror stories and issues, BTCC still manages to provide top liquidity, whose transactions can always be completed at the best price.
This trend is indicated by the chart below, which compares BTCC to other exchanges. The figure shows the congruency of spot prices even amidst extreme market volatility.
Another element that many traders take for granted is the stability of servers and operations. Exchanges going dark or glitches are very common in today’s world, which can seek to cause chaos, panic, or the collective losses in the millions.
For its part, BTCC’s servers are always stable, devoid of the same embarrassing or disruptive glitches that other exchanges have experienced. This sort of stability is instrumental in instilling confidence with customers.
Other crypto exchanges have chosen to introduce an element of vulnerability in their operations by deploying 3rd party services to build their exchange. This can often lead to lapses or blind spots in operations, which can in turn facilitate the likelihood of issues.
By extension, BTCC invests sizable resources and time into their systems management. The results are easy to see at a time when other exchanges are not so streamlined.
This scenario was on full display recently when Huobi’s servers cut off during dramatic market moves.
User Protection Measures
BTCC also strictly adheres to balance protection in the case of margin calls. A margin call occurs when the value of the investor’s margin account drops and fails to meet the account’s maintenance margin requirement.
This is the nightmare scenario for investors, who will need to sell positions or deposit funds to meet the margin call. If the investor fails to cover the margin call, the future exchange will have to liquidate their positions, and charge the users’ fee of closing a position.
This instance differs in crypto market trading relative to traditional futures market trading. In normal futures markets, users are presented with forced liquidation though may still have some balance left.
However, in crypto market trading, crypto exchanges commonly will seize away user’s balance after forced liquidationand put it into the pool of “insurance fund” to cover others’ negative balance.
This is simply something that BTCC does not tolerate or believe to be fair practice. As such, BTCC has policies in place to fully cover users’ negative balance rather than let all profiting users or forced liquidated users to share the losses.
This is just another example of BTCC’s overall fairness and transparency measures in place to protect users.
Disclaimer: The content of this article does not represent the opinions of Finance Magnates.