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The evolution of Altcoin Part II: The challenges and accessibility

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Last week, we featured “Altcoin Evolution”, NewsBTC’s latest series about the market-wide challenges altcoins face in reaching the market. We’ll start with a list of challenges altcoins have in the general market. Accessibility.

The American consumer will be the most likely to see the framework we use to describe these challenges. This includes some of the projects, exchanges, and so forth. The topic may not be available globally yet, which speaks to its very nature. These processes and issues will also be viewed through the eyes of a casual to mid-market cryptocurrency consumer. This person has a solid understanding but not necessarily the depth of advanced crypto-native users.

Making a purchase: overcoming the challenges

The accessibility is without doubt the biggest challenge for emerging projects, such as ECOMI tokens (which we mentioned last week in ‘Altcoin Evolution) or Dapper Labs FLOW token (from creators of NBA Top Shot). FLOW and OMI tokens are typically in the top 100 market cap, making them large enough to be on the radar but not a significant threat to becoming a top 20 token.

Let’s look at the basics of securing this asset. To acquire the OMI coin, you will need to open an account on Bitforex or Gate.io. These are all lesser-known crypto exchanges than major players like Crypto.com, Binance and Coinbase. , FTX, etc. .

Our team went through the steps to purchase OMI tokens. This allows us to compare it with the major exchanges more casual users use. Bitforex was chosen because of its reliability. Cryptographic reputationThe ability to support more altcoins than most exchanges. There are over 150 tokens supported. We chose XLM to transfer funds into Bitforex to take advantage lower transfer fees than other major tokens. Fees can vary widely between currencies, so it’s wise to do your research and look at the possibility of acquiring the desired token.

Some cryptocurrencies, like XLM, may require more information than a QR code for a wallet. It is important to use a TAG/MEMO if it is available in order not to lose transfer funds or delay. The TAG/MEMO line can be viewed as an apartment number. While the QR code acts in the capacity of a building,

The Coinbase trading process is different in that you first need to transfer funds from Bitforex wallet into a spot/trading account on Bitforex. This allows for instant trading on the platform. Next, we needed to trade XLM tokens to Tether, the USDT stablecoin. After the conversion was completed, we could purchase the OMI piece.

There are still many hurdles to be overcome despite the ease of buying that is leading the charge in traditional markets. Potential investors who wish to acquire tokens can be hindered by the unknown additional steps involved in simple purchases of BTC and ETH on popular exchanges.

In essence, casual consumers will be less likely to be familiarized with the process if it is not already familiar.

FLOW, a prominent altcoin, is working with premier partners to increase awareness. However, the token will require more exchange support in order to increase consumer accessibility.Source: | Source: FLOW-USD at TradingView.com

Related reading: Bitcoin stuck at the clouds, but better times could be ahead| Bitcoin stuck in the clouds, but better days could be ahead

The next step: How Altcoin projects calm major exchanges

As crypto gains legitimacy over time, major exchanges have developed political frameworks for how they support new tokens.

Let’s look at the major Coinbase exchanges. The company has a core set standard for crypto asset issuers that is focused on compliance to Coinbase’s core values and technology. It also ensures compliance with market demand, market supply, and crypto. -economy. However, the company introduced the Coinbase Asset Hub.

Coinbase was soon after, in the early part of May. A guide to listing assetsTheir blog page has more information on the exchange. The blog addressed the main points of contention, including the conformance of the source code to industry standards, centralization (which may determine the degree of possible collusion in the project), and the achievement a real and bearable usage case (read more about this section in ‘Altcoin Evolution’).

Coinbase is working to streamline the asset listing process. In A blog post for JuneBrian Armstrong, Coinbase CEO, stated that one of the top three opportunities was to bring “more assets to Coinbase, quicker.” This message was sent as Coinbase announced its intention to launch a DeFi.crypto application store.

Despite the difficulties of accessing crypto, the future looks bright for emerging projects that want to increase their visibility. As the crypto space grows and matures, exchanges will look to streamline their processes. Legitimate projects will likely be granted the platforms they need.

Next week’s Altcoin Evolution will focus on one of the key sticking points Coinbase identifies in its guide for listing assets: use cases and value. These traits are important and can be enhanced by projects.

We’ll see you next week!

Similar reading: Polygon Acquires Hermez Network. How They Will Improve Ethereum Scaling Solutions| Polygon Acquires Hermez Network, How They Will Improve Ethereum Scaling Solutions

Charts from TradingView.com. Image courtesy Jerry Sena

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