The crypto industry is full of obstacles, including limited liquidity, poor security measures, and fraud as a result. But some platforms for working with crypto, such as the Cryptomus exchange, offer a solution to these problems.
Cryptocurrencies are a great investment option, but due to their digital nature, they are highly susceptible to attacks and leaks. Coin holders become unprotected, especially newbies who have little experience or do not have it at all. Nevertheless, it is possible to protect yourself if you trade on a platform with robust security measures and regulation. This article tells you more about the problems of limited liquidity, weak security, and fraudulent schemes, and how the Cryptomus exchange addresses them.
As already mentioned, the smooth and unhindered operation of the exchange depends on the measures taken there. If there are problems, it means that the regulation is not strong enough, or there is a failure somewhere, which also occurs due to lost control. To illustrate this matter, a low level of liquidity occurs on exchanges due to poor trading volume. How does it arise on a full-fledged exchange with a large audience? As a result of weak exchange rate regulations and little confidence of potential users.
Speaking of weak protection features and software failures, they can lead to security issues, namely attracting hackers and triggering scams. Eventually, it is easy for fraudsters to infiltrate the platform. According to the “Chainanalysis” source, 2024 alone totaled over $2.2 billion in crypto-related financial fraud, including investment schemes. One more point is that although it is not the fault of the developers, the limited liquidity on some exchanges arises not only due to low trading volume, but also the same weak regulation.
Total annual cryptocurrency losses. Source: Chainalysis
It is obvious that such problems affect the users’ financial situation. Let’s take a closer look at each issue in terms of what it entails:
- Limited liquidity problem. It increases price volatility and makes it difficult to transact at desired prices, especially during recessions. It raises costs due to large bid-ask spreads; moreover, it creates favorable opportunities for market manipulation. All this is bound to undermine the exchanges credibility, discouraging other traders and thus reducing activity even further. It turns out to be a vicious circle.
- Security problems. This is first of all about the safety of personal information and users’ funds. Lax platform security protocols and irregular audits lead to service outages, which deprives users of access to their assets temporarily or permanently. Also, system vulnerabilities can lead to unauthorized access to user accounts and data breaches.
- Fraud problem. Due to negligent security measures, exchange users become victims not only of account hacking and unauthorized withdrawals but also of phishing attacks. It is known that getting back the lost money as a result of a scam is almost impossible. Another negative aspect of being swindled leaves a psychologically unpleasant residue.
Although it seems impossible, all these moments can be controlled, and it becomes achievable to work on the exchange with confidence. The Cryptomus exchange, which offers a comprehensive ecosystem for cryptocurrency trading and caters to both beginners and experienced traders, can teach a lot here, as it focuses on security, simplicity, and accessibility. Below we describe how the platform solves each of the pressing issues.
To begin with, it’s worth saying that Cryptomus is one of the few exchanges where liquidity is at a consistently high level. This is because of the large number of active users, of which there are more than 400,000. The substantial activity of the users from all the platforms’ products (Staking, P2P Exchange, Payment Gateway, etc.) and, more significantly, Auto-convert utilizers, boosts liquidity which in turn provides the tightest spreads for each order book. Transactions from over 100,000 institutional clients are executed within the narrowest spreads across each order book, fostering an ideal environment for high-frequency traders. The fact is that large functionality strongly influences the number of users and contributes to the growth of transactions.
What is more, Cryptomus developed powerful computer programs that provide a special mechanism that reduces latencies on the exchange, which in turn also narrows the spreads. This feature includes special software that ensures the highest TPS (transaction-per-second) as well. It is for these reasons that the Cryptomus exchange is an ideal place for high-frequency trading.
Security backs every aspect of the exchange. Cryptomus includes multiple features, among which are 2FA, encryption technology, AML policy, and the CERTIC certificate, which only reinforces all of the above. And for access to some products, the exchange has a KYC procedure that identifies each user and protects them from encountering unscrupulous sellers or buyers.
One of the most important security features of the Cryptomus platform is the blocking of withdrawals after a password is changed. So, in such situations, users are always confident in the safety of their assets. And of course, a 24/7 support service that responds to questions that arise and helps to prevent unwanted situations. And such, perhaps, should be on every exchange, especially if it operates worldwide.
Undoubtedly, measures such as 2FA, encryption technology, KYC and AML are aimed at protecting against hacking and the work of fraudsters on the exchange. But there are also other ways that target scam schemes. For example, against Pump and Dump, when the value of a coin is first artificially increased and then devalued, Cryptomus has its own countermeasure. Tokens there are thoroughly verified before listing, similar to how users are verified during KYC. Therefore, confidently, the exchange controls the situation, not allowing fraudulent schemes to happen.
Cryptomus continues to refine security via AI-driven fraud detection. Also, as the next step, the exchange plans to broaden the range of trading instruments in the future to better cater to the needs of both beginner and advanced traders. In this regard, with the least amount of barriers and the greatest amount of accessibility, Cryptomus seeks to be a universal solution that will enable users to fully realize the potential of the digital economy.
If you haven’t encountered similar security and regulatory measures on the exchanges you’ve used, it’s worth considering choosing a platform with this approach. You can try trading on Cryptomus and start it now, or save the exchange in your bookmarks to do it later.
Find out more about Cryptomus.
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