What makes a good exchange? – BTW Blog

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Monday marked a historic day as we publicly unveiled BTW — and we are only just getting started!

We are eager to continually share with you our thoughts about some of the most important issues and challenges relating to trading and the investment of digital assets.

That said, we wanted to ask a basic question: “What makes an exchange good?”.

This is a simple question but one that warrants a complex answer.

There are literally over 500+ exchanges out there in the world servicing almost 20,000 markets, or trading pairs. With so many options, how do you know which one to trust? And even if you do trust the exchange, is it easy to use? Furthermore, maybe you can trust it and it’s super easy to use, but is it quick and are the fees low?

Therefore, the BTW Standard is one built on four essential components: trust, ease of use, speed, and cost. When we set out to make the world’s best exchange these four factors were (and are) at the top of mind every step of the way.

We needed to break down what trust meant before we decided on how we wanted to structure the exchange. Trust is very much a multi-factorial exercise and it can’t be reduced to, for instance, a centralized vs decentralized all-or-none approach to how trust fundamentally operates in exchanges. Right now, the largest, most reputable exchanges like Coinbase and Binance for example, have basic sole custodianship of the funds. Other exchanges are more on the decentralized spectrum, and operators can access through admin keys on a smart contract or in the case of Uniswap, for example, there is no backdoor and hence no custodianship of any kind.

At BTW, we still feel the best trade-off is custodianship along the lines of the Binance and Coinbase as the half measure of admin key + non-custodianship still leaves the same openings as sole custodianship, and having no backdoor such as in Uniswap means there’s also no room to upgrade or change the parameters/functionalities of the exchange/system — indeed blind trust in non-custodial protocols is a risk in and of itself.

Trust is also about the transparency of security measures, which is why we are proud to state that we are SSL and 2FA-enabled, with a 95% cold storage policy on all digital currencies. Though this is the highest standard for a sole-custodianship type exchange we aim to engineer and innovate even more stringent security protocols as time goes on.

We believe regulatory and legal compliance is also a major part of the trust spectrum as well. It’s imperative that BTW and its users to know that we have a consistent and profitable future ahead of us unbeholden to any concerns about our ability to operate.

After we satisfied these concerns and balanced the greater good in building the trust-based aspects of our exchange, we knew we needed to be easy to use. Let’s face it, for most people, crypto is not easy, and trading platforms can be difficult to use. We wanted BTW simple enough for a non-crypto user to use expertly, but feature-rich enough that an expert user could use simply.

Lastly, we needed to be fast and cheap, that’s why we have in place the best architecture to achieve near instant trades while keeping costs low.

Stay tuned for more!

Finding value together in the future,

— the BTW Team

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