How to overcome and influence the many challenges in the encryption industry? AirCash gives you the answer

From the beginning, the decentralization of the blockchain has always been the foundation of every digital asset. Not using a third-party trust system is one of the main reasons Satoshi Nakamoto created cryptocurrency and blockchain.
However, in 2021, the price of Bitcoin rose sharply, reaching US$68,521 on November 5, 2021. Now, Bitcoin is not only used by shameless hackers or geeks.
With more and more companies trying to get a share of the pie, the industry has attracted a large number of institutional investors. This phenomenon has already affected a sovereign country, such as El Salvador, which decided to adopt new digital assets as legal tender. For asset types created only in 2009, Bitcoin and cryptocurrencies have generally performed better than any asset class in recent history.
Now the industry has attracted the attention of world leaders and international institutions, who are looking for a way to suppress or control this booming industry. Due to the rapid development of the industry, we have also seen an unprecedented increase in the number of platforms that provide multiple types of encryption services.
As the government’s supervision of the industry has become more and more stringent, some top encryption platforms are doing their best to avoid being caught in illegal crimes. However, this behavior makes them somewhat deviate from the core values ​​of cryptocurrency in general.
Some encryption platforms have completely deviated from the master plan, while others have chosen a neutral route. Regardless, the industry is still struggling with the issues we will list in this article.
In fact, centralized platforms were once expected to become the main driving force for the growth of the digital economy. But the actual situation seems to be the opposite. Ironically, the number of decentralized assets created has increased, but they are mainly traded on centralized cryptocurrency exchanges.
In fact, the centralized exchange is indeed the first cryptocurrency exchange launched in the industry. They facilitate transactions through centralized institutions. For example, these exchanges provide an easy-to-use trading platform, but it is done in a regulated venue.
Users can get the option of trading, but it is done under the supervision of a third party. The third party checks the order and ensures that all participants comply with the regulations.
Surprisingly, the demand for these centralized exchanges is huge and popular, with millions of users flocking to them for a variety of reasons.
At the time of writing this article, when you look at the trading volume of a centralized exchange, it ranks high. This shows that some investors do not realize the root cause of the problems that plague them.
First of all, these exchanges have to adapt to the government’s rules and regulations based on the new law. This fact has caused more problems than solutions. If you are a keen observer, you will notice that centralized exchanges have updated their terms and conditions.
Now they have implemented stricter KYC (Know Your Customer) management measures and stricter AML (Anti-Money Laundering) laws.
This is not a bad thing when you consider that it has reasonable restrictions on those who conspiracy. However, this is a double-edged sword, and it will also affect millions of users who reasonably and legally use encryption products. After understanding the many features provided by these digital currencies, these users chose to use encrypted transactions instead of fiat currencies, but they have now been rejected.
From a correct perspective, in order to confirm the identity of users, centralized exchanges usually require specific data from users. New users have to submit several unnecessary identification data to the central authority.
What users don’t know is that this puts them at a huge disadvantage. The user’s assets and data are stored in the exchange’s centralized database. Nowadays, users’ data and assets are vulnerable to data theft and illegal access.
However, this is not all, trading on centralized exchanges also brings several other problems. Let us understand them in more detail in the next section.
KYC measures to challenge the centralized platform
KYC measures have been a hot topic so far, and they have caused many different reactions in the encryption field. Some users of encryption don’t want laws and regulatory agencies to keep track of or try to force them to share personal data. However, as we said before, this violates the basic principles of cryptocurrency.
Security and vulnerability of being hacked
The standard practice of centralized exchanges is to store detailed information and asset data of all consumers in a centralized database, which makes it an easy target for hackers. It is nothing new that the encryption industry has always been the main target of hackers, and even the most secure exchanges will not be excluded.
These shortcomings are so serious that they cannot be ignored, and they don’t seem to stop anytime soon. Almost all centralized exchanges have been attacked by hackers. In general, this has indeed hindered the more general development of cryptocurrencies.
The new generation of investors we have today needs the courage to take risks and a high degree of tolerance. Not only that, but investors also need to be keen to distinguish real investments from phishing attacks and deadly scams.
Unfortunately, in the past ten years, the field of encryption has been plagued by hacker attacks, scams, and security breaches. We have compiled an easy-to-browse list of famous hacking incidents that shocked the encryption industry:
Coinrail: This incident occurred in South Korea. Criminals stole $40 million worth of digital assets from a boutique exchange.
Coincheck: This is the second largest cryptocurrency exchange in Japan, and NEM worth $500 million was stolen.
Zaif: The Japanese exchange was not immune to the theft of $60 million in cryptocurrency.
Binance: There is no doubt that this exchange is one of the largest in the world, but it has also been hacked. Assets worth approximately $45 million were stolen.
Bithumb: According to Coin Telegraph, the hacking occurred on June 19, 2018. Hackers stole tokens worth about 30 million U.S. dollars.
BitGrail: The exchange became the first to list Nano, however, hackers stole $195 million in tokens from them.
This list proves that no centralized encryption platform is 100% secure regardless of geographic location, scale or security architecture.
Withdrawal limit issue
It is no news that centralized exchanges often impose restrictions on customer withdrawals. They do this as a security measure, so the amount withdrawn from the exchange is limited.
First, the withdrawal limit will cause incentives to be misaligned. In addition, this is a serious inconvenience for traders, and trader satisfaction should be the top priority of the exchange. One thing that users don’t know is that exchanges have benefited a lot from doing so because they can’t get funds, because they maximize transaction fees.
The problem of expensive transaction costs
This is another way for centralized exchanges to exploit users. Usually, these exchanges have been criticized in many ways for charging extremely high listing fees. If you want to know why the charges are high, the reason is not far-fetched.
Some of the factors that contribute to the inherently high fees are profits, overhead costs, and the security requirements of the platform. In one way or another, the customer will bear the costs incurred because they are a pass-through of transaction costs.
Use of centralized wallets
One of the main threats of centralized exchanges is the centralized custody of funds. When the market goes through a bull market, there will always be cash inflows from new investors. This makes centralized exchanges a well-known honeypot. This will only allow malicious attackers to target them.
The centralized transaction method is similar to a trusted third party, whose task is to store users’ encrypted assets so that they have a liquidity pool. They do this by accumulating assets in digital wallets held by exchanges.
In this regard, we can rightly say that as the market continues to grow, users should foresee that the severity and frequency of attacks will increase. If the attackers do not work for the money, they will try to steal private data.
Order arbitrage
Another obvious problem caused by the use of centralized exchanges for exchanges is that they can see the outgoing and incoming orders. In some respects, this is unethical, because they can earn money by preemptive transactions. There are also accusations that exchanges sometimes delay placing orders in order to profit from spreads when prices fluctuate.
Trading and trading volume expansion
When there is an unprecedented increase in the volume of transactions across trading platforms, centralized exchanges often encounter technical difficulties and unexpected delays. Unfortunately, large cryptocurrency exchanges are no exception. In fact, this has become the norm. This is due to the fact that the exchange’s servers cannot cope with the surge in trading volume.
In what has happened, these exchanges will suffer 90 minutes of downtime. The loss caused by this shutdown is estimated to be around 60,000 bitcoins.
This is just one example of the countless problems that centralized exchanges have encountered when they cannot handle the increase in trading volume on a specific date.
However, the existence of decentralized exchanges is not desperate and frustrating for users, but the dawn at the end of the tunnel.
Advantages of decentralized exchanges

  1. Reduce the risk of being hacked
    With a decentralized exchange, you can reduce the risk of being hacked. By using a decentralized exchange, you don’t need to transfer assets to any third party. In this way, you don’t have to worry about the platform or company being hacked.
  2. Check market manipulation
    Due to the nature of allowing peer-to-peer exchange of digital assets, decentralized exchanges prevent any form of market manipulation. In this way, users can be protected from shuffling transactions and false transactions.
  3. Anonymous
    As the founder of Bitcoin intended from the beginning, you can remain anonymous by using a decentralized exchange. Fortunately, they do not require users to fill out KYC forms. In this way, you can always remain anonymous and private.
    How to choose the right decentralized platform
    Because there are countless decentralized platforms on the market, making the right choice can be a bit difficult. However, we have reduced the burden for you. To be on the safe side, we recommend using Aircash because it ticked all the correct options and more.
    In addition to the simple operation and easy operation of the platform, Aircash is also the world’s first and largest decentralized over-the-counter trading platform. Now, you can use fiat currency to buy or trade your digital assets in a decentralized way.
    By using Aircash, your days of using a centralized exchange are gone forever. You don’t have to worry about hacking or any form of identity theft. Because hackers cannot steal your identity that you never provided in the first place.
    This also means that without KYC, you do not have to create any type of account, and you will not be asked to provide any personal information. From start to finish, you will trade your cryptocurrency anonymously.
    If you want to know how to trade, it is as simple as drinking water. The platform uses peer-to-peer communication to communicate with potential traders. In this way, no one knows the details of your transaction, and even the platform itself cannot inquire it.
    How to use AirCash?
    AirCash is a product of AirCoin Labs, which is a cryptographic decentralized autonomous organization (DAO).
    As we said before, using Aircash is as easy as drinking water. Here is how to start:
    First, create a wallet for transactions.
    Next, connect the wallet to AirCash.
    Finally, use the fiat currency in your wallet to buy or sell any cryptocurrency of your choice, and you can start.