The Bitcode protocol is a software standard used by brokers and exchanges to support transparent and streamlined trading of digital assets. It’s designed to let users trade all kinds of crypto assets simultaneously, without compromising on performance, security, or user experience.
Readers who are new to Bitcode may find this article helpful in understanding how it works and which companies are using it. For those who have been following the news about Bitcode protocol recently, this article will serve as a brief overview of its benefits.
Regardless of where you stand with regards to Bitcode right now, we think that any reader interested in trading should know more about it. And so we present the 4 Best Ways BitCode Prime Can Help You Trade Crypto Better in 2022.
1. Consolidation of Crypto Assets
The most common use case for Bitcode Prime is the consolidation of crypto assets. This means that instead of trading separate instruments for each one of your crypto assets, you can trade them all together in one single transaction. This simplifies the trading process for users, who no longer need to open and close positions for separate crypto assets.
It also means that traders can be more selective with their trading strategies without having to worry about impacting the overall portfolio. The consolidation of crypto assets has been a popular feature among exchanges that offer Bitcode-based trading. This includes PrimeXBT, a trading platform that offers users access to more than 400 crypto assets, and which recently announced that it had hit one million users.
2. On-Chain Auditing and Transparency
Bitcode Prime uses smart contracts to create an immutable record of all trading activity. This means that all transactions become part of the blockchain, which is publicly accessible. This allows anyone to see the history of transactions between two parties, which may help deter fraudulent activity. At the same time, on-chain auditing provides transparency for all parties involved in a transaction.
This means that users can be sure that their orders have been executed and that their funds are held in a safe and verifiable environment. Exchanges that offer Bitcode-based trading may use the blockchain as a primary source of order execution, which creates a simple and transparent experience for users.
3. Deterring Illicit Activity
Bitcode Prime takes advantage of the transparency provided by on-chain auditing to help exchanges prevent fraudulent activity. This is because all trading activity is recorded on the blockchain, which allows exchanges to identify malicious actors and take action as necessary.
The transparency created by Bitcode Prime also allows exchanges to reveal their trading activity. This means that users can use this information to better understand how their transactions are being executed. This information might include details about exchange order types, the number of orders on the books at any given time, and the order types that are most commonly executed.
4. Improving User Experience
The on-chain auditing and transparency provided by Bitcode Prime can help exchanges improve their user experience. This is because they can use the information provided by Bitcode Prime to create a more user-friendly trading interface.
By combining data from multiple exchanges and asset types, Bitcode Prime exchanges can create a single interface that provides users with a simple and streamlined view of their entire portfolio. This can help users understand their overall position better, make more informed trading decisions, and avoid the frustration caused by separate interfaces for each crypto asset.
Bitcode has the potential to help crypto exchanges reduce their costs and increase their number of users. It can also improve the overall crypto trading experience by simplifying the trading process, creating a more transparent trading environment, and improving the user interface.
The Bitcode protocol is still relatively new and has yet to be widely adopted. But if it continues to grow in popularity, it could have a significant impact on the crypto industry as a whole. So if you’re trading, or are interested in trading, you should keep an eye on Bitcode to see how it evolves.