PROOF OF RESERVE IN CRYPTOCURRENCY MARKET EXCHANGE

Hello to everyone in this great community today and on this great platform at large today. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

I welcome you all to yet another amazing day of the week. It is ineed the weekend and I hope that we all are doing just perfectly well along side our family and friends. We give glory to the almighty who has kept us this far.

Today is another beautiful day and I want to take this time out to discuss with us regarding an important topic that is related to the digital market exchange. I have titled the topic for today to be PROOF OF RESERVE IN CRYPTOCURRENCY MARKET.

This is a very interesting topic and I would not want you all to miss any detail and as such, I urge you all to sit tight and relax while I begin the teaching for today. I wish you all a happy reading!

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The digital market exchanges are platforms or medium through which a user of the digital currency can explore the exchange to trade the digital currency.

These exchanges are responsible for keep our digital assets safe and they make absolutely sure that nothing tampers with the funds of users since the assets are under their care now as it has gotten into their platform.

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Now these exchanges provides wallet whereby users can actually store their funds their, as such the exchanges do whatever they may with the funds.

Although the funds is physically seen there as the value is written boldly, but the big idea is that, the portfolio does not stay dormant on the exchange. It is being used by the exchange platform, and the asset is being restored back immediately when the need for such assets arises. But then, one has to carefully consider certain factors before one can be confident about the safety of one's assets on an exchange platform.

You do not just see an exchange platform online and make a decision to use such exchange as your primary platform where you can keep all your assets. Trust comes with certainty and the certainty we are talking abour is related to the ability of the said exchange to prove it worthy of keep users assets safe and sound.

Now with this, we can now talk about the topic of today and it is seen below.

PROOF OF RESERVE IN CRYPTOCURRENCY MARKET EXCHANGE

Now this is one basic feature an exchange is supposed to have for effective functioning and to gain the trust of it users, thereby assuring the that their portfolio are safe in the exchange platform.

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The proof of reserve is the ability by which an exchange showcases that it possess the capacity of holding more than just enough funds to cover all the deposits that comes into the exchange platform. This is the ability whereby an exchange proves to it users that there are sufficient assets to cover up for all the deposits that are carried out on the platform.

The idea of the proof of reserve is not just for showing off but to assure users that their funds are safe with them and they are not in anyway running away with their funds. So it is important to checkmate the proof of reserve regarding the exchanges you make use of because this has a great impact when it comes to trusting an exchange with your assets.

It will be a dead end if a user chooses to make use of an exchange that has no proof of reserve, this is a dangerous decision because such exchange has not proof it capacity to stand strong and true should anything go south as though they do not have much on ground to cover all deposits that comes in.

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Based on a standard term, an exchange is expected to stand independently, not depending on the funds of the user. Most exchanges operates on a centralized system and as such, they are responsible for your assets and where it goes due to the centralized mode of operation. With that, they can choose to make use of your assets at any time.

For one to be sure that his or her assets are safe, one has to know whether the exchange in question has the money to cover for the assets should there be a problem.

I have seen how many exchanges make use of users assets to either trade or strike deals without the consent of the users and if such trade or deal does not work out, the funds of the users is then at risk since the exchange does not have proof of reserve to cover for the loss of any failed deal or trade that has been executed.

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CONCLUSION

It is very paramount to know the state of your assets in any exchange platform you wish to make use of.

Always checkmate the all necessary information regarding the exchange and it activities so as to know what you are in for and if you like what you see there, then you can go on to make use of it but if you feel uncomfortable and not sure about the safety of your funds should it get in there, then it is advisable to keep off of such exchange and go for a better one that is having proof of reserve.

Thank you all for having me here today, I look forward to discussing more with you when next I am here. Have a great day and bye for now friends.