Exchanges are cryptocurrency centrepieces. If you want to buy or sell coins to get some fiat currency safely and securely, you need an exchange. If you want to trade Bitcoins for Ethereum or any other altcoin, you need an exchange. The sites know that people have limited options when it comes to dealing with cryptocurrencies. They are aware that they hold the leverage when it comes to consumer/provider relationships.
That is not a bad thing. Digital currency exchanges provide stability. They make sure that people do not get scammed, and that market prices are properly displayed at all times. They spend thousands of dollars a day protecting their users, while also providing a service that is paramount to the well-being of the crypto market. In return, they charge fees. Those fees are based on a percentage of the transaction made. So, for example, an exchange imposes 0.5% cost per transaction, you would barely notice it when you buy or sell $20 worth of BTC. However, if you bought or sold $20,000, then that 0.5% represents an extra $100 that you will have to take into account.
But it does not have to be like that. WCX is a new company that is looking to revolutionise the way exchanges behave. And they want to do this in the easiest way possible, by attacking the most visible problem all users experience, fees. Here is a small list of what a few of top exchanges charge to use their services, according to data pulled from Coindesk:
- Bitfinex: 0.2%
- Bitstamp: Start 0.5%, and there is also a 0.1% deposit fee
- BTC-e: 1% over 500 BTC. Anything under that is 0.2%
- Coinbase: 0.25%
- ItBit: Up to 0.5%
- OKCoin: 0.2% and 0.1% withdrawal fee
It sounds like small amounts, but if you do several transactions a day, you are looking at losing hundreds of dollars in fees. WCX improve this by making their exchange fees lower. WCX is ten times cheaper to use than its closest rival. That means that less money is being paid to the exchange while they still provide top level services.
The way WCX does this is creating an altcoin that helps to facilitate operations. The WCX Token is ERC20, which is part of the Ethereum blockchain. Additionally holding WCX means that 20% of all revenue generated by the exchange is automatically paid to coin holders. That is a huge deal. Even if you do not want to trade on this platform just by holding its coin, you are guaranteed a steady income based on the volume the exchange generates. That means WCX is extremely stable. It would be like holding a mutual fund, but with a higher payout.
And the people behind this idea are brilliant individuals. WCX is composed of former Apple and IBM employees, as well as Deutsche Bank executives. Their goal is to be able to scale the company as volume increase without sacrificing transaction’s speed. It is a lofty goal that they have prepared for, and all they are looking for is people with enough financial cunning to take advantage of holding a coin that is virtually immune to speculation. WCX will not be the next biggest digital currency exchange. WCX is the best exchange available. And it will be foolish to miss their ICO September 9, 2017.
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