Whenever there is a transaction among two parties, the result is a gain for both parties. It is not so that one party will gain and the other will face loss or both the parties will face loss. A transaction happens only when there is a case of gain among the parties.
If the situation is unfavorable and there is no chance of gains there will be no transaction in normal conditions. Similar is the case of cryptocurrency. The deposits that an investor makes after purchasing a specific amount are always according to his choice and the exchanges are mainly the mediators that act like a bridge between the two parties. You can visit https://bitcoinmotion.site to execute profitable trades even if you don't have any prior experience in bitcoin trading.
Several exchanges help the investors to make the purchase and sell the coins when required efficiently and flexibly. The features of the exchange should be well equipped so that the exchange can hold up the customers as well as can channel the transaction routes. At present, we are well aware of the conditions of the market and there is nothing to hide. Leading to these reasons there is news that some exchanges are holding back both deposits and withdrawals by the customers. In this article, we are going to study these halts that the exchanges are creating in the completion of transactions.
Exchanges and their role
Exchanges act like a medium between a customer and a service provider. The exchanges have the facility of digital wallets that act like storage bins for cryptocurrencies and digital assets. Every wallet is assigned a digital signature key so that there is no duplication while either paying or receiving the amount. The unique key help to complete the transaction securely and help the users to keep themselves updated about their doings over the network. Exchanges play an important role and this can be estimated from the fact that the digital currencies are showcased only on these exchanges and not on any share market.
Halts in deposits and withdrawals
The present situation of the market is not hidden from anyone. The dips of the market have increased and are the lowest in the history of cryptocurrency. Digital coins have lost more than half of their value and as a result, the market trends are negative mostly. This can be experienced from the lags and halts that the major service exchanges that once hold a major share of transactions are holding back their transaction procedures. They are halting both deposits as well as withdrawals and thus the customers are feeling some fear of getting a less valued amount of transactions.
Reason for halting the transactions
The major reason that the scholars are putting forward for this unexpected behavior of the exchanges is liquidity. A digital currency like bitcoin is not that much liquid as a fiat currency and thus does not create a supply chain of exchange of its own. The liquid cash is absent in the exchanges and thus there is nothing to hold back. It may sound strange but the survival of exchange is also necessary to keep up with the absent transactions. The volume of transactions has decreased and as a result, the crowd is also less.
What to do in this situation?
As the condition of the market is not stabilizing after a long time so there are either two option. Either one should wait for the revival of the market by keeping their holdings intact. Second, the transactions have to be pulled out. The holdings are to be ended with the exchange and invest in some other venture. These are mere suggestions and an investor should work according to his needs and tastes.