Even when the price of Bitcoin loses 31% in one day, which it did only last week, the exchanges that offer the buying, selling, and exchange of BTC, see a massive influx of users trying to sell off their holdings, fast. The same is true when the cryptos have a major bull run, with many retail investors trying desperately to buy Bitcoin and its peers.
Coinbase is a publicly listed company on the NASDAQ exchange under the ticker COIN. Its stock price is closely correlated to the price of Bitcoin, and you would expect that when Bitcoin is in freefall, this tumble in stock price would greatly affect the market capitalization of this exchange, and yet it doesn’t. Surprisingly, that’s when exchanges like Coinbase do their best. They see massive user traffic, which represents an uplift in their revenues, as they make money from transaction fees. This huge revenue uplift comes from the huge spike of users desperately trying to offload their holdings for fear of a price crash.
Big Trouble in Exchange City
For users of exchanges though, times of extreme price volatility can mean trouble, and not just because their holdings are losing value. Digital exchanges, which are still relatively immature are just not prepared for the massive influx of users that they see.
Robinhood, a broker that offers the commission-free buying and selling of stocks and cryptocurrency, is facing up to 80 court cases after closing up shop during an extreme price surge for Bitcoin and its peers. Robinhood simply did not want to be on the other side of that trade.
Binance is one of the largest digital exchanges and yet it has suffered more downtime and outages than you can count. This means that at times like this, users cannot register, and those who are registered cannot buy or sell their crypto holdings. As you can well imagine, this causes users extreme frustration and extended losses.
A couple of weeks ago, Binance suffered a major service suspension where users could not withdraw their holdings. You can guess at the outrage expressed through the comments in the Twitter post below.
All withdrawals are temporarily suspended on #Binance.
Rest assured our team is working on it.
We apologize for any inconvenience caused and thank you for your patience.
— Binance (@binance) May 10, 2021
However, one company is offering users a gateway to all of the leading digital exchanges like Binance, OKEx, KuCoin, Bitfinex, Poloniex, and when using Atani, users do not fall foul of downtime or outages. No, this clever platform that gives users secure access to trading on over 20 exchanges, has zero downtime, even if the exchanges it links to are down. Not only that, but Atani also offers a 1-click tax reporting service for free for all users of the platform and transparent pricing comparisons across all these exchanges.
— Paul Barroso (@paul_btc) May 19, 2021
So stealing words from Atani’s Paul Barroso, don’t be down in the dumps if your exchange goes down. Always know that when it comes to the blockchain, there is always a better way.